What is Cryptocurrency? Full Explanation
Cryptocurrency or crypto is a collection of binary data, which works as an exchange, i.e. as an exchange.
Ownership records of privately minted coins are stored in a ledger, which is a computerized database and record of transactions to control and own additional coins. And a strong and very secret coding is used to secure its transmission. This is called cryptography. Cryptocurrency is essentially fiat currency, which cannot be converted into notes, nor can it be converted into a commodity. Cryptocurrency is essentially a system of value. When investors buy cryptocurrencies, they buy with the expectation that their value will increase in the future, just as stock market investors buy securities and believe that the company will grow and share prices will rise. , but rising stock prices depend on discounted estimates of the company's future cash flows. While cryptocurrency does not have such a system, as it does not have a company or industry, it depends on the buy-in of investors. That is, cryptocurrency values depend on the likelihood of investors buying the asset or the utility of the cryptocurrency's blockchain. Cryptocurrency runs on blockchain technology.
What is blockchain?
Over time, the term has become so common that its meaning has become blurred. Basically, blockchain is a digital ledger of investment transactions, distributed across a network of computer systems. No single computer system controls it, but a decentralized network of many computers runs the blockchain and verifies transactions on it. Proponents of blockchain technology say it is a transparent system, which increases trust and better protects data shared on the network. On the other hand, its opponents say that blockchain is a cumbersome, inefficient, expensive and energy-consuming system.
According to John Lensky, a cryptocurrency system has six conditions:
This system does not require any central authority. This system monitors and monitors cryptocurrency units and their ownership. This system determines whether new cryptocurrency units can be created or not. If new cryptocurrency units can be created, this system describes how to determine the ownership and actual state of these new currency units. Ownership of cryptocurrency units can only be proven by cryptography. Transactions are carried out through this system, by which the ownership of cryptographic units is changed. Transactions can only be made under this system and this proves the current ownership of these units. If two different requests to change the ownership of a cryptographic unit are submitted at the same time, then the system will accept only one of them. Cryptocurrency does not exist in a physical form, like a paper note, nor is it issued by a government agency or a state agency (like rupee notes are issued with the signature of a governor) but is issued by a central bank. Digital currency (CBDC) works in contrast. It has no central control system. In 1983, David Cham, an American cryptographer, implemented the concept of cryptographic electronic money, which he named "e-cash". It later made further changes and in 1995 introduced what was called 'DigiCash', an early form of cryptographic electronic payments, through which notes were withdrawn from the bank and sent to the recipient. At the same time, specific encrypted keys were sent to the recipient through the software. This digital currency could not be traced by banks, governments or anyone else. It is said that the first decentralized cryptocurrency "Bitcoin" was created by Satoshi Nakamoto in 2009.
BTC, or Bitcoin, is the largest and most popular cryptocurrency, but it was not the first decentralized digital currency. Earlier there were cryptocurrencies called eCash and DigiCash. Computer scientist Nick Zabo created "Bit Gold". Y Day created "Be Money". Despite all these efforts, they failed to attract the masses, but it can be said with certainty that these men laid the foundations of digital currency.
Crypto investors buy digital assets only when they believe in the power and utility of blockchain, all cryptocurrencies run on blockchain. This means that crypto-investors are attracted and bet on the blockchain after seeing its flexibility. (Whether they are aware of it or not) Cryptocurrency transactions are permanently recorded on the blockchain. Groups' transactions are added to the 'chain' in the form of 'blocks', which validate transactions and keep the network running. All batches of transactions are accumulated in common ledgers, which can be viewed by anyone. Transactions on major blockchains such as Bitcoin and Ethereum (ETH) can be viewed by anyone.
Investors in cryptocurrencies do not have their own assets like traditional bank accounts. Instead they have digital addresses (numbers). These addresses are for private and public keys comes with, consisting of numbers and letters, through which cryptocurrency users send and receive funds. Private keys (keys) make cryptocurrency usable and allow anyone to send it. While public keys remain available to everyone and enable a user to receive cryptocurrency sent from another.
In our country too, it is being invested on a large scale, especially the youth section is leading in it. Different countries around the world have adopted different positions. El Salvador has become the first country in the world to legalize cryptocurrency. On June 2021, its Legislative Assembly introduced a bill to legalize cryptocurrency, which was passed by sixty-two (62) votes. Approved by majority. In August 2021, Cuba also legally accepted Bitcoin. Meanwhile, China, which is the single largest cryptocurrency market, imposed a complete ban on cryptocurrency in September 2021, making all cryptocurrency transactions illegal. The Central Bank of the Republic of Turkey has banned cryptocurrency transactions and the use of crypto assets since April 30, 2021.
The Indian government also wants to ban all private cryptocurrencies, with few exceptions, to pave the way for central bank-supervised digital currencies. There is a war going on between the digital currency and the country's economists. When Modi introduced demonetisation in 2016, the country saw a huge increase in digital currency transactions, along with a huge rise in digital currency fraud. Keeping this in mind, the government banned all crypto transactions, but the Supreme Court lifted the ban in March 2020. As soon as the Supreme Court declared the ban null and void, its movement has accelerated. According to research by Channelalysis, it has registered an increase of 600% during the last 12 months. According to industry body Blockchain and Crypto Assets Council (BACC), the country has the third largest economy in Asia. About two million people have invested in cryptocurrency. Prime Minister Narendra Modi said that cryptocurrencies can corrupt our youth. While the central bank has expressed concern and warned that it could "pose serious risks to microeconomic and financial stability."
Raghuram Rajan, former governor of the Reserve Bank of India, has warned that the use of digital US dollars could have a negative impact on poor countries. He said that while the digital dollar could provide essential financial services to many people in poor countries and where basic financial infrastructure is lacking, it could also have unintended and negative consequences. A readily available digital dollar will eliminate local currencies, which could pose a serious threat to the country's financial system.
The government is going to bring the "Cryptocurrency and Regulation of Official Digital Currency Bill" in the winter session of Parliament. The bill also talks about banning all personal cryptocurrencies in the country, as well as legalizing digital currency issued by the Reserve Bank of India. Currently, there are hundreds of cryptocurrencies operating under different names in the world. What is its legal status? Is it legal to buy it? Especially Muslims must be aware of its legal status as well as its Shariah status. It is hoped that the scholars will pay attention to this aspect and issue clear guidance and bring its clear status before the people.
A cryptocurrency or crypto-binary is a collection of data, which works as an exchange, i.e. as an exchange. Ownership records of privately minted coins are stored in a ledger, which is a computerized database and record of transactions to control and own additional coins. And a strong and very secret coding is used to secure its transmission. This is called cryptography.
How easy it is to make money with cryptocurrency, learn how and benefits of using cryptocurrency and bitcoin
In modern times, where society is developing, electric vehicles are running, mobile phones are becoming digital, your money is also becoming digital. Why are you not surprised? Yes, we are talking about cryptocurrency and Bitcoin. Which is in a lot of discussion on social media these days. Today we will give you complete knowledge about cryptocurrency and bitcoin. We will tell you how to use this digital currency, what are the benefits
Can say that after this news you can also bring the idea of cryptocurrency in your mind. What is cryptocurrency? Cryptocurrency is your money which is digital. That you can use in the digital world. Just like you create your account on digital platforms and share your personality with people, in the same way money has come in the form of crypto currency in the digital world. Crypto currency is an invisible currency that is viable in the digital world. This cryptocurrency was introduced in 2009. And the first cryptocurrency was Bitcoin. Just as you keep your money in a wallet to keep it safe, cryptocurrency is also kept in an online wallet, that's why it's called an online currency. In Bitcoin, money is transacted online. Cryptocurrency is being used to promote online business. Now you might be wondering what is the difference between other online payments and Bitcoin payments? Bitcoin transaction fees are lower than other traditional online payments. Bitcoin is like a Google document that anyone can work on, buy, sell. Bitcoin is built on a distributed digital record called a blockchain. As the name suggests, a blockchain is an interconnected body of data, called blocks, that contains information about each transaction. contains information, including date and time, total price, buyer and seller, and a unique identification code for each exchange. Entries are linked together by dates, creating a digital block of blocks. Chain is created. There are some ways to convert Bitcoin into money, which are being used worldwide.
Through online business or store business: One way is that you can use money payment gateway ( online business) or choose a point of sale app (store business) that offers this service. Like BitPay. Via Cryptocurrency: If you are using the first method i.e. a gateway or point of sale app that is converting your customer's bitcoin cash into a digital wallet. You can convert it into money yourself through a trusted cryptocurrency exchange.
What are the advantages of Bitcoin?
1- The first advantage is user autonomy, that is, the user can buy and sell without any pressure or restrictions.
2 - Another important advantage that everyone will want to take is that Bitcoin does not involve banking fees, while transaction fees for international purchases are also very low.
3- Bitcoin is easily accepted by bank credit cards, traditional banking. is independent and different from the method of the system.
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