A Cryptocurrency is a form of digital currency that operates independently of any Central Bank. A digital or virtual currency that uses cryptography technique for security. Basically, Cryptography is a technique in Computer Science to protect or encrypt something. If a digital money uses encryption techniques to perform the operations done on regular currency. Things like the generation of more currency units and verifying funds transfer are all performed by this encryption technique. So, what does this all mean? Here we are operating our operation independent from government and central banks and their policies means Cryptocurrency is a way to store personal wealth that is almost impossible to restrict and confiscate.
DISCLAIMER: I am not a financial advisor nor am I giving financial advice. I am sharing my biased opinion based on my researches. You should not take my opinion as financial advice. You should always do your research before making any investment. It is just a informative blog.
A cryptocurrency which is 'mined' by coders and computers using a complex algorithm or the blockchain technology. Cryptocurrencies have been gaining a lot of attraction over the past few years due to the meteoric rise in their values. Cryptocurrencies are becoming popular day by day like wild fire.
TRANSPARENCY: With Bitcoin, there is an open ledger called blockchain on which all transactions are recorded and monitored. Because of this, once a transaction is completed and recorded on the ledger, it can't be changed. Transactions are available for verification by anyone and anytime. No one can manipulate it and therein lie this is a pretty good security feature of the blockchain.
DECENTRALIZED & VOLATILE: It is fully decentralized and volatile in nature, there is no control of any government or central banks you can do whatever you want to do. Access anyone who knows how to use the internet. That's the reason no one can say what next. Due to decentralized, we can see fluctuation of its price.
TRANSACTION & SECURITY: In case of Cryptocurrencies transactions are performed person to person because there is no third party involved. Transactions are made independent of the identities of the parties making them. This protects users from identity theft. Your transaction cannot be traced.
LOWEST FEES: In cryptocurrencies, you are dealing with person to person that' why the fees become very low. You are the owner,its open for everyone on the blockchain.
LIMITLESS & WORLDWIDE: It can be sent anywhere there is no boundation of geography and time. No physical presence is important and can be exchanged with any foreign currency.
PORTABILITY: Unlike physical money, large amounts of cryptocurrency can be transported easily without any detection. It is possible to carry billions of dollars in Bitcoins in a memory drive on you personally, though not advisable.
FUTURE ASPECT: The production of coins will be fixed so with time supply will be less and demand will be high which is a very good sign for every investor.
There is no doubt Cryptocurrencies have bright future but as we know nothing is perfect in this universe so let's have a look some of the Cons of crypto currency in part-2 because this blog already become long.
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