You slept knowing monetary funds only circulate through cash notes and within government-regulated banks, including investments and currencies. Waking up the next morning, cryptocurrency market, the ”Bitcoin” in particular ,waved hello and you discovered faceless people are earning billions of dollars out of it without state intervention.
You said that’s right - it certainly deserves a “what?!”
The Cryptocurrency market consists of virtual transactions with digital currencies using an encrypted database deregulated by a central bank. It can simply be referred to as “digital cash” based on cryptography.
To clear the air more, cryptocurrencies can be simply explained as “limited entries in a database no one can change without fulfilling specific conditions.” These entries are the money traders capitalize on.
Satoshi Nakamoto, the inventor of Bitcoin -- the pioneer of the cryptocurrency market -- unintentionally built the concept out of trying to devise a peer-to-peer electronic cash system. He intended to create such a network to prevent double-spending without a server or central authority.
Thanks to the initiative, the world now clicks their way to high digit amounts.
HOW DOES CRYPTOCURRENCY WORKS?
The Cryptocurrency market is based on a network of peers where everyone has a record of all transactions taking place including every account’s balance. Within a blockchain, exchanges and storage of electronic money occur using encryption schemes to control the creation of financial units and verify the transfer of funds.
One of cryptocurrencies’ major aspect is the confirmation of peer-to-peer transactions on funds. After a transaction gets confirmed by “miners,” it cannot be retracted. So its actually a consensus-based process, secured not by people nor government but by Math.
CRYPTOCURRENCY MONEY IS:
- In Controlled Supply
Tokens circulated among cryptocurrencies are limited. Bitcoin itself programmed its supply to last until 2140. All others apply a similar scheduled cap in their codes. This property make flowing cryptocurrency assets predictable.
- Not Debt
Cryptocurrencies are money as hard as gold coins. Unlike bank balances, they are not created through debt and numbers on ledgers. Although digital, Bitcoin money for example cannot be retrieved for any reason.
CRYPTOCURRENCY TRANSACTIONS ARE:
Pretty self-explanatory: no taking back. Once a transaction is confirmed, what you can do with it is nothing. No one
in that casecan also get a hold of a confirmed transaction, not even Satoshi.
- From Anonymous Users
Aforementioned, cryptocurrency users are represented by pseudonyms called addresses. Real world identities are not disclosed on any account, thus you will transact with anonymous people as someone anonymous yourself.
- Definitely Secured
Cryptography protects all transactions in cryptocurrency. Although they can be viewed, they cannot be manipulated after confirmation. Crypto-funds are secured in extreme encryption systems.
happenin just a couple of minutes since global computer networks process transactions in an eye bat. Hence, earning or losing assets in cryptocurrency will take place at a similar pace.
- Free of Permission
Software related to the Cryptocurrency market can be downloaded for free, free of charge and free of permission. Since it is deregulated, literally anyone can engage in mining, trading and spending in it.
Currently, Bitcoin has a deregulated market cap of $11,382,240,050, not to mention the other existing cryptocurrencies. It’s now for you to decipher.