How do cryptocurrencies work? And why do we use it?
For my 4th week here in readcash I have seen and read all article's are the most posted and gain upvote is all about cryptocurrencies, bitcoin, Ethereum, lite coin, etc. I know that many user are still dont understand what cryptocurrencies work so I do research a summary for this kind of topic. I also I don't understand too much, it is slightly 😁
Cryptocurrencies use decentralised technology to let users make secure payments and store money without the need to use their name or go through a bank. They run on a distributed public ledger called blockchain, which is a record of all transactions updated and held by currency holders.It is a currency associated with the internet that uses cryptography, the process of converting legible information into an almost uncrackable code, to track purchases and transfers.
In the second world war, cryptography was born out of the need secure communication.
Its been has evolved in digital area with the elements of mathematical theory and the computer science to secure communication, information and money online.
In 2009 the first created cryptocurrencies was BITCOIN and it still the best known.
What is Bitcoin?
A digital currency, used to make payments of any value without fees. It id run on the blockchain, a decentralised ledger kept running by the “miners” whose powerful computers crunch transactions and are rewarded in bitcoins. Like we are doing here in readcash but readcash paying us in BCH.
Who invented it? 🙄
Sir Satoshi Nakamoto
a secretive internet user
He invented in 2008 before before it went in online in 2009
Many attempts to identify satoshi have been made without conclusive proof.
What is for? 🤔
People see value in money free from government control and the fees of banks charge. Bitcoin has been seen as a tool private, anonymous transaction and its a payment choice of drug and other illegal purchases.
Units of cryptocurrency are created through a process called mining, Users can also buy the currencies from brokers, then store and spend them using cryptographic wallets.Which involves using computer power to solve complicated maths problems that generate coins.
Transactions including bonds, stocks and other financial assets could eventually be traded using the technology. Cryptocurrencies and applications of blockchain technology are still nascent in financial terms and more uses should be expected.
There are four most commons Cryptocurrencies 4️⃣🤔?
BITCOIN - the first and is the most commonly traded in Cryptocurrency to date.
Ethereum-Developed in 2015, ether is the currency token used in the ethereum blockchain, the second most popular and valuable cryptocurrency.
Ripple-another distributed ledger system that was founded in 2012. Ripple can be used to track more kinds of transactions, not just of the cryptocurrency.
Litecoin - This currency is most similar in form to bitcoin, but has moved more quickly to develop new innovations, including faster payments and processes to allow many more transactions.
Why would use a cryptocurrency?
Cryptocurrencies are known for being secure and providing a level of anonymity. Transactions in them cannot be faked or reversed and there tend to be low fees, making it more reliable than conventional currency.
As a new form of cash, the cryptocurrency markets have been known to boom suddenly, meaning a small investment can become a large sum over night.
This has led to a spur in professional and amateur speculators investing in bitcoin and other cryptocurrencies, seeing them either as a quick way to make returns or as part of an investment portfolio.
But the same works the other way. People look to invest in cryptocurrencies should be aware of the volatility of the market and the risks they take when buying. They have dropped significantly several times, potentially costing investors their millions.
Because of the level of anonymity they offer, cryptocurrencies are often associated with illegal actvity, particularly on the dark web. Users should be careful about the connotations when choosing to buy the currencies.
That its all for the summary about cryptocurrencies. If you do so more research about this topic, I recommend you to search in Google for more information you to get..
Thank you so much for your kind reading this article May Godbless us all. 📖😊
Very useful article indeed. Thank you very much for writing this kind of articles and sharing this articles with us.