CRYPTOCURRENCY

WHAT DOES CRYPTOCURRENCY MEAN?

A cryptocurrency is a digital currency which uses cryptic security. They are difficult to replicate because of their cryptographic security system. It’s not controlled by the government, making it impossible for government to manipulate or interfere.

The first cryptocurrency that caught the attention of the world is the BITCOIN, and it was launched in 2009 either an individual OR group which goes by the name Satoshi Nakamoto. Around April/may bitcoin was around 17 million I circulation with a market value of $140 billion. The success of bitcoin brought about other cryptocurrencies such as, Ethereum, PpCoin, litecoin, e.t.c.

CRYPTOCURRENCY BENEFITS AND SETBACKS

With cryptocurrency you can easily transfer funds between two parties, and this is done with public and private keys for security purpose. This transfers are done with little processing fee unlike the huge amount collected by most banks for bank charge for wire transfer.

 Also we have what we call the Blockchain Technology, What is the blockchain Technology? It is used for storing all transactions of an online ledger that has been done by using bitcoin.

However, cryptocurrencies are digital and that makes them not to have a central depository, a virtual cryptocurrency balance can be wiped off there is a computer crash without the backup copy of the holdings. The prices are based on supply and demand, so the price for which a cryptocurrency can be exchanged for another can fluctuate widely.

 The hidden nature of cryptocurrency transactions allows them to be a good host for taking money illegally and also evading taxes. However, cryptocurrency supporters and investors merit the anonymous nature highly. It is also often said by Economist that cryptocurrencies are short-lived whim, because bitcoin has experienced some surges and collapses in its value.

Also cryptocurrencies being virtual makes them prone to the threat of hacking. In the history of bitcoin, the currency has been subject to over 40 thefts including some that has exceeded a huge sum of $1 million in value. Still what gives high hopes to some observers is that it can preserve value, help in easy exchange, it’s more mobile than hard metals, and most of all it’s beyond and outside the influence of central banks and governments.