Cryptocurrency is a digital currency that can be defined as being used to buy goods. In the language of computers, it is a collection of binary data, developed for financial transactions. But it is a very different kind of currency than our current currency or coin.
American cryptographer David Chaum conceived of a cryptocurrency electronic currency called an ecash. This is about 1983. He modified it into Digicash in 1995, a unique concept that could be converted into cash from banks. This was followed by extensive discussions and debates on cryptocurrency. Debates over legal recognition began to spread in the West. The first cryptocurrency, called Bitcoin, was finally issued by Satoshi Nakamoto in 2009. Similarly, Litecoin was released in 2011 and Ethereum in 2014. After that years, its popularity raised like skyrocketed and thousands of digital currencies came into existence.
What is a blockchain and how does it work?
It is an electrically decentralised, distributed chain that serves as a network of very large networks. This is a special kind of chain that works in a transparent way for all users by eliminating electronic fraud.
Types of Block Chain
Block chains are specifically classified into four types.
1. Public block chain
2. Private block chain
3. Hybrid block chain
4. Consortium block chain
What ICO or IDO?
When a person, group or organisation is going to launch a coin or token in the future, money is important to them for that project. Their project requires initial funding. And to fulfil that, they launch ICO or IDO. And those who want to invest in it early can participate in their project through various block chains at a very affordable price. But before participating on such a project, investors must pay attention to some basic things. For example, the number of holders, liquidity check, who is the owner of the project or which group, etc. should be considered well. And by doing so, investors will be able to avoid fraud and reap better benefits in the future. You can see and understand such projects on websites like Coinmarketcap.com, Icodrops.com, etc.
Platform for Trading
If you want to trade in cryptocurrency, there are many different platforms available to you. Binance, Kucoin, Huobi Global, Coinbase Exchange, etc. can be good examples of this. People are investing billions of dollars through these platforms rather than the stock market.
The Benefits of Cryptocurrency
Crypto miners or growers and investors seem to agree:
1. Since this currency works on the principle of decentralization, the cost of making paper notes or coins can be avoided.
2. The people will be freed from the current government-centrist banks and their cumbersome system.
The Disadvantages of Cryptocurrency
Critics see this as useless because of following points.
1. Token and crypto mining consumes a lot of electricity and this will create an imbalance in the environment in the near future.
2. Critics say it is a good way for terrorist and insurgent groups to buy illegal weapons and to hide corruption, bribery or black money.
3. As it is a decentralized system, many frauds are taking place and this work will increase in the coming day
Regulation and Laws
China is said to have the largest number of cryptocurrency investors in the world. But by mid-2021, the Chinese government had declared it illegal in China. Many countries, including China, have legal restrictions. But in the United States, the United Kingdom and other countries, it is legal. El Salvador is the first country that has allowed cryptocurrency (Bitcoin) to be used as government currency. In India, where a lot of investors live, cryptocurrency is now a matter of debate.
In the Last
It is estimated that billions of dollars have been invested in the cryptocurrency market. Therefore, cryptocurrency is a matter of concern to both the government and the people. Would it be beneficial for everyone to be able to regulate it by misusing it?