Cryptocurrency has been around for almost 12 years. In 2008, an unknown person or group of people going under the name Satoshi Nakamoto invented it. It made the headlines; and many people bought some, then Soo forgot about it while it grew in value. Today, a single Bitcoin is worth almost $12,000, and there are many other cryptocurrencies out there. Many people still don’t understand the concept of a digital money that’s instant, private, and free from bank fees. However, in an increasingly cashless world, cryptocurrency may become the main currency we use, which will change everything
What is Cryptocurrency and How is it Created?
Cryptocurrencies are digital or virtual currencies that are secured by cryptography. This makes it impossible for them to be counterfeited or double-spent. Many are decentralized networks based on blockchain technology, which is a distributed ledger enforced by a disparate network of computers. They are also not issued by any central authority, making them immune to government manipulation or interference.
These virtual currencies are considered alternative, because they exist outside the bounds of state monetary policy. Most simply put, cryptocurrencies are a digital means of exchange created and used by private individuals or groups. They use cryptographic protocols, which are extremely complex code systems that encrypt the transfer of sensitive data, securing their units of exchange
Bitcoin and Other Cryptocurrencies
While Bitcoin was the first to be widely used, hundreds of cryptocurrencies exist. In fact, more are created regularly. It is important to clarify that cryptocurrencies can be exchanged for fiat currencies in special markets. This means that these virtual currencies have a viable exchange rate with US dollars, British pounds, European Euros, Japanese yen, and other major world currencies.