A cryptocurrency is a digital form of money that is a more secure medium of exchange.
The big idea is that because transactions are public, irreversible, mostly unhackable, and controlled by the people, users and their digital finances are more protected.
Cryptocurrencies don’t have a central issuing or regulating authority, instead of using a decentralized system to record transactions and issue new units.
Cryptocurrencies run on a distributed public ledger called blockchain, a record of all transactions updated and held by currency holders.
Units of cryptocurrency are created through a process called mining, which involves using computer power to solve complicated mathematical problems that generate coins. Users can also buy the currencies from brokers, then store and spend them using cryptographic wallets.
If you own cryptocurrency,
you don’t own anything tangible.
What you own is a key that allows you to move a record or a unit of measure from one person to another without a trusted third party.
Cryptocurrency Is Owned by Everyone
Cryptocurrency functions similarly to any traditional, national currency with a few fundamental differences.
Current “fiat currency” is created and regulated by a governmental body, all of which now represent debt. Anyone that owns a country’s currency holds an “IOU” issued by that respective country.
Cryptocurrency Is Almost Impossible to Forge
Cryptocurrency operates on a blockchain, which is the distributed ledger we talked about above. Understanding blockchain technology will help you not only understand what cryptocurrency is all about and why this is the key to the power of digital currency.
Are Elon’s tweets solely responsible for the crypto volatility?
Elon has the power to move the crypto markets with his tweets. He is the ultimate influencer of the cryptocurrency market due to a huge following of his cryptic tweets on Bitcoins, Dogecoins, or even CumRocket. The investors experience a sudden rise or drop in prices immediately after his viral tweets. It is heard that Elon Musk controls the cryptocurrency market as well as the digital wallets of interested investors.
Penned By: Rtr. Kavinda Senarathne