Cryptocurrency is a virtual currency. As soon as you hear the word crypto, a simple matter comes to your mind. And that is encrypted and decrypted. All of us who use computers will be familiar with this word. I keep several files together and encrypt them for security. And the word crypted has been used for this protection. Cryptocurrency has been created by combining crypto + currency.
What is cryptocurrency?
I have already said that cryptocurrency is a virtual currency. Which cannot be touched, only seen. This is a computer algorithm technology. It is made up of cryptographic code. Simply put, it is a number through coding. As you think there is 1000 / - rupees in your development. Is this Rs.1000 / - really money, or just numbers? Just the number, this number you can take real money with its authorized organization. Development is a permitted and regulated medium but cryptocurrency is not controlled by anyone.
Cryptocurrency transactions are done through a secure blockchain. Which is a completely secure and hack-free medium.
What are cryptocurrencies?
When it comes to cryptocurrency, Bitcoin is the first thing that comes to mind. There are different cryptocurrencies in the market but Bitcoin is the first and most popular among them. Also in order, Ethereum, Litecoin, XRP, etc.
Bitcoin
We can negotiate with Bitcoin to make cryptocurrency easier to understand. When you hear the name Bitcoin, you will think it is a real coin. As I said before, cryptocurrency means virtual currency.
As far as is known, an unseen person in Japan named Satoshi Nakamoto made Bitcoin. He kept his identity secret. To this day no one has seen him and it is not possible for anyone to say whether he is alive. He has no other identity except his name. And Bitcoin is a part of his name. In other words, just like I call the broken number of 1 taka (0.05 five paisa) as paisa, the numbers after the zero decimal of bitcoin are called satoshi.
How is Bitcoin made?
Bitcoin high power is created through a complete computer called mining. Its main driving force is a powerful instrument called GPU (Graphics processing unit). Graphics is very much understood through the word, because we are quite familiar with this word. The method of making bitcoin is called mining and those who do this mining are called miners.
Those who do bitcoin mining get a commission. And it is this minor that validates or checks the validity of the bitcoin transactions that are done. This means that when we transfer bitcoin from one person to another, it automatically goes to the system of the mining computer and the mining computer checks the validity of the transaction and sends the transaction to a block if the transaction is correct. Which is called blockchain system.
Power consumption is much higher in Mining. So mining is not very profitable in a country where the price of electricity is high.
Control over Bitcoin
No one can control Bitcoin or cryptocurrency. And so it is called decentralized. As our country's money is regulated, so money is a centralized currency. The money is jointly regulated by Bangladesh Bank and the Government of Bangladesh. And Bitcoin is not the currency of any country, so no one can control Bitcoin or cryptocurrency.
At present, however, developed countries continue to try to regulate cryptocurrencies. One of which is the United States.
One issue here is that cryptocurrency is out of control; As a result, the price of this market fluctuates a lot. For example, in January 2016, the price had reached 20,000 / - US dollars, at the time of my posting, which is now 356 / - US dollars. It is easy to understand how much the price fluctuates. And so investing in this market is a lot of risk. Although its popularity is increasing day by day.
Bitcoin transactions
Bitcoin transactions can be done very easily, quickly and securely. There is no third party here. For example, you will send money from one end of Bangladesh to the other. Then for this you have to go to the bank with the money and pay it or send it through internet banking at home. Whatever you do, you can't send without a bank. Bank third party here. But if you want to send Bitcoin to someone, you do not have to take the help of any third party. This means that if I just pay you a bitcoin here, no one but me will know. This transaction is called P2P or Peer to Peer and so it is much safer and easier.
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