We hear the word cryptocurrency everyday now on social media, news and even our peers talk about cryptocurrencies. So, WHAT IS CRYPTOCURRENCY?
Cryptocurrency is a form of digital asset derived from blockchain technology. As cryptocurrencies are decentralized, this feature prevents the control of government and central authorities. Cryptocurrencies are the new system of secure online payment, denoted in terms of “tokens”.
WHAT DO WE MEAN BY BLOCKCHAIN?
The blockchain concept isn’t as complicated as it sounds. Blockchain is specific type of database which is used to store information, but unlike database all data are stored in blocks which are then chained together as they are filled. Basically, in cryptocurrency data stored in the blockchain is mostly monetary transactions, but it is also reliable to store other data as well.
WHY THE SUDDEN RUSH IN CRYPTO?
· Cryptocurrencies are known for their volatility, which certainly caught attention of the whole world.
· Crypto provides secured online payments, all transactions are fraud-proof since every transaction are recorded in public ledger.
· Blockchain is why the cryptocurrencies have any value. Its ability to make transaction faster than any other network has what brought cryptocurrency in high demand.
HOW ARE CRYPTOCURRENCIES MINED?
Cryptocurrencies are mined by solving extremely complex computational math problems using sophisticated computers. Anyone who solves the problem receives cryptocurrency as a reward. They are the owner of the specific crypto mined without having to invest any money. GPU (graphics processing units) or an application specific integrated circuit (ASIC) is used to set up the mining rig.
Here, is the list of few well-known cryptocurrencies with their symbol, market capital, number of transactions per second (TPS).
CURRENCY | SYMBOL | MARKET CAP | TPS | CONFIRMATION TIME |
BITCOIN | BTC | $835.85B | 7TPS | 10 MINS. |
ETHEREUM | ETH | $377.38B | 20TPS | 5 MINS. |
CARDONA | ADA | $77.30B | 250TPS | 40 SECS |
RIPPLE | XRP | $48.737B | 1500TPS | 3-5 SECS |
CAN ANYONE EARN MONEY THROUGH CRYPTO?
Though they are many debates as to whether cryptocurrencies are a smart investment or not. Many investment banks and millionaire/billionaire make huge investment in cryptos because of its volatility and its increasing demand due to its efficiency. It is believed to be risky, but extremely profitable if hold for long run. (Of course, one should always make investment in such areas after proper research and careful study.) Some also trade cryptocurrencies on daily basis on certain trading terminals.
BITCOIN: THE FATHER OF ALL CRYPTOCURRENCIES.
Bitcoin is the pioneer of all cryptocurrencies. It was launched in 2009 by the pseudonym “Satoshi Nakamoto”. Elon Musk and his companies, SpaceX and Tesla own some Bitcoin. El Salvador, a country in Central America on Tuesday, legally adopted Bitcoin as the legal tender of the country.
Sources.
Economic times.
Investopedia
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