Greetings to All of you!
Here I am with you a understanding topic about cryptocurrency. For the beginners there are many questions related to cryptocurrency.
In this content you know what is cryptocurrency? And how it works?and what is the future of cryptocurrency?What is the need of cryptocurrency ?You have many questions related to cryptocurrency.
So In this content I will tell you shortly about cryptocurrency.
You only need to understand 5 concepts for those questions After you know well about cryptocurrency.
| Money vs currency | Centralized and Decentralized |
|---|---|
| Fiat Currency | |
| Physical vs digital money | Blockchain |
Money vs currency
So what is the currency
For e:g if you have 2000 in your pocket and government announce that note of 2000 is banned onwards so what is the value of your 2000?
But what about money yes money store it's value if you have gold coin at your home you can any time exchange it with currency govt can't ban this coin. I hope you understand my concept.
Centralized and Decentralized
Currency can be centralized or decentralized too. The currency we used controlled by govt they can print how much they want so it increases the inflattion. Centralized is under the control of government.
Decentralized:
Decentralized is not under the control of government. For example Bitcoin
They can't print Bitcoin on their own . It has limited resources and supply. In limited supply of Bitcoin value is stored.so it just acted as a gold coin so people say in future the price of Bitcoin increases.
Decentralized is also known as cryptocurrency.
Fiat Currency
Before some years every country have limited resources of currency print according to reserve assets.
But today there is no assets in the background for the print of currency and it is unlimited .
People think fiat currency is fake Currency. So I think you convert your assets into the crypto . It prevents you from inflattion and your money value can't be depletion.
Physical vs digital Currency
Before some years people don't believe on digital currency like paytm they think it's fraud otherwise people only believe on physical currency.
But now people think digital currency is safe yes it is.
Cryptocurrency totally based on digital technology. It is digital form of currency. So there are many resources you can buy Bitcoin for example coin DCX here your fund is safe and assure.
Blockchain
Finally the final step is blockchain on which cryptocurrency is based. Many people say we have much interest on blockchain technology.
Technology behind cryptocurrency is something beyond we should adopt that is blockchain technology.
What is blockchain technology?
It is simple thing know as ledger any transaction we do is maintained. Any transaction in the bank is maintained by bank . If the entry is removed by ledger it become very complex .
But in Blockchain no entry Can be removed in Blockchain people have their own computer. Every transaction is verified at every stage if there is any error in between it can't be verified further.
Your transaction is safe here.
Cryptocurrency is very vast in future you can build your own network a digital currency which is designed to work through computer network