The Role of Crypto in Modern Technology :: participation in the contest
Hello steemains,
Hope you are doing well. Here am i with another post. This is my participation in the creative contest of @amryksr. I am very thankful to him for arranging this contest. The theme of the contest is The Role of Crypto in Modern Technology - Contest. You can find the contest post here
What is Crypto
A digital payment system known as cryptocurrency doesn't rely on banks to validate transactions. Peer-to-peer technology makes it possible for anybody, anywhere, to send and receive payments. Payments made using cryptocurrencies do not exist as actual physical coins that can be transported and exchanged; rather, they only exist as digital entries to an online database that detail individual transactions. A public ledger keeps track of all bitcoin transactions that involve money transfers. Digital wallets are where cryptocurrency is kept. Due to the fact that transactions are verified using encryption, cryptocurrency has earned its moniker. This means that the storage, transmission, and recording of bitcoin data to public ledgers all entail sophisticated code. Encryption's goal is to offer security and protection. The first cryptocurrency was created in 2009 and is still the most well-known today: Bitcoin. A large portion of cryptocurrency interest is in trading for financial gain, with speculators occasionally sending prices stratospheric.
How does it work
A distributed public ledger known as blockchain, which is updated and maintained by currency holders, is the foundation of cryptocurrencies. Through a process known as mining, which employs computer power to solve challenging mathematical problems, units of Bitcoin are created. Additionally, users have the option of purchasing the currencies from brokers, then storing and spending them in digital wallets. When you hold cryptocurrencies, you don't actually own anything. What you possess is a key that enables you to transfer a record or a unit of measurement between people without the use of a reliable third party. Despite the fact that Bitcoin has been available since 2009, the financial applications of cryptocurrencies and blockchain technology are constantly developing, and more are anticipated in the future. The technology wallets could someday be used to trade bonds, equities, and other financial assets.
Why crypto prices fluctuate
Supply and demand
Like anything that people want, supply and demand influence the value of cryptocurrencies. Price increases when supply is less available than demand. For instance, if demand remains constant during a drought, grain and produce prices will rise. With regard to cryptocurrencies, the same supply and demand theory holds true. When supply grows less than demand, cryptocurrency becomes more valuable.
Production price
The process of "mining" creates fresh tokens. Utilizing a computer to validate the following block on the blockchain is known as mining. The ability of cryptocurrencies to function as it does is due to the decentralised network of miners. In addition to any fees paid by the parties exchanging the tokens to the miners, the protocol generates a reward in the form of cryptocurrency tokens as payment in exchange.
Competition
Existing cryptocurrencies range in number into the thousands, and new projects and tokens are introduced every day. Although there is a low entry barrier for new rivals, producing a cryptocurrency that is viable still requires creating a network of consumers.
Is crypto is safe
No crypto is not safe. Yeah it is not safe if you invest in it blindly, you can lose you are money. So without proper knowledge and research, investment in crypto can be very risky. There are many other factors that show crypto is not safe. More than stock exchanges, cryptocurrency exchanges are susceptible to hacking and are frequently the target of other illicit activity. Investors who had their digital currencies stolen as a result of security breaches suffered significant losses, which prompted many exchanges and third-party insurers to start providing insurance against hackers.
What is the legality of crypto in Pakistan
It is the most complicated topic to cover in post. Bitcoin and other cryptocurrencies are not formally authorized in Pakistan, but they are also neither forbidden or illegal. No one or any organization has been given permission by the State Bank of Pakistan to engage in the acquisition, sale, exchange, or investment of virtual currencies, coins, or tokens.
At the end of post, I am inviting @growwithme, @itssajid, @farzana49 to participate here.
Sorry, your contest post was plagiarized and you fell out of the contest.