History Of Cryptocurrency
Cryptocurrency the most trending word right now originated in the year 1983 founded by David Chaum an American cryptographer who created an anonymous cryptographic electronic money called ecash from which the whole idea of cryptocurrency was originated. In 1995 DigiCash an advanced version of ecash was created which uses software to withdraw notes from the bank and assign an encrypted key before it is sent to the recipient. This allowed the money details to be hidden from issuing bank, government, and any third-party agent which generated the whole idea and concept of cryptocurrency.
What Is Cryptocurrency and how it works?
Cryptocurrency is a digital currency that can be used to exchange products which include goods and services. There are more than 10000 + cryptocurrencies available now. Bitcoin, Ethereum, and Dogecoins are some popular examples of cryptocurrencies. In 2009 the first decentralized cryptocurrency, Bitcoin was created by Satoshi Nakamoto. Transaction of Cryptocurrencies is based on Blockchain technology which is one of the most secure processes in the world. In Blockchain information or data is stored in a chain of blocks. Blockchain makes the transaction process of the cryptocurrency very efficient. Blockchain assigns a cryptographic key to the cryptocurrency which makes it decentralized. The GIF shown below illustrates how blockchain works.
Investing In Cryptocurrencies
In cryptocurrency, there is no middle agent between the transaction due to which there is no external interaction of banks, government, etc. In cryptocurrency trading, there are no predefined rules which make the market of the cryptocurrency very volatile due to which investing in cryptocurrency is not as safe as investing in stocks. In stock trading, there are many rules which make it a safer option compared to investing in cryptocurrencies. For example in stocks, there is a regulatory body such as BSE (Bombay Stock Exchange), NSE (National Stock Exchange), etc which regulates the market which prevents the market from falling heavily but in cryptocurrency, there are no regulating bodies due to which the market is volatile. But that doesn’t mean we should not invest in cryptocurrency, we can invest in cryptocurrency by giving some small amounts to analyze the crypto market.
Future Of Cryptocurrency
Can cryptocurrency replace the physical currency which we use daily use? The answer is no for now but in the future, no one knows because cryptocurrency is not stable due to which it is not possible to replace the physical currency but companies like KFC, Pizza Hut, Microsoft, etc companies have stated using bitcoins as an alternate option of payment. When it comes to world of finance, cryptocurrency has always been a topic of great discussion where many tech founders like Bill Gates and Elon Musk portrays cryptocurrency as the future whereas business tycoon like Warren Buffet says that cryptocurrency will never replace physical currency as it is very unstable.
Is Cryptocurrency legal in India?
Cryptocurrency trading is legal in India but transaction or buying products through Cryptocurrency is not legal in India as of now. Wazirx,Coinbase,Binance are some popular trading platforms where you can trade and buy cryptocurrencies. To stay protected always read company’s prospectors and see what projects and investors are involved before buying their cryptocurrencies because many malpractices happen with the transaction of cryptocurrencies such as it is used in buying illegal weapons and it is used in dark web too and many illegal activities.
At last, I would like to thank you for taking the time to read this blog. This is my first blog. Please comment and do express your thoughts on this blog so I can improve in my next blog.
Top comments (1)
Hi John,
First of all I am very sorry for the late reply. For more information about cryptocurrency I will recommend you to see threads on Cryptocurreny on Twitter, join an cryptocurrency club or discord server, take a course and reserach about in on the internet if you want to learn about Cryptocurreny in depth because I am also very new in Cryptocurreny and I made this blog from the help of youtube videos and my research.