CRYPTO - The Future Currency.

What is Cryptocurrency?

This might be the most common question among the people who are new to the term "CRYPTOCURRENCY". In a much simpler way cryptocurrency can be defined as the virtual or the digital currency which is not authorized by the government and is neither centralized and it does not exists in physical form. One can invest in cryptocurrency and it is as simple as investing in stock market. As the time passed many cryptocurrencies got evolved such as , bitcoin, dogecoin, Ethereum, internet computer, Theta Fuel and many more. 

These cryptocurrencies act as a virtual tokens for transaction. Introduction of crypto has many advantages as well as disadvantages. It depends upon the user that how he/she uses this facility. The main reason why bitcoin became more popular is that the transaction of payments cannot be traced if he/she uses crypto as their means of payment, this leads to many illegal activities. Most of the illegal activities happen in a place called as "DARK WEB", on which I would be writing my next blog.

  

Mining of cryptocurrency :

Mining of crypto has a twofold. The first one is when these computers solve the complex problems on the particular crypto company network, they produce a new currency. And the second is done by solving computational math problems. In a much easier way we can say that your are given with a block chain problem which you need to solve. If you solve the block chain problem then you will be awarded with some cryptocurrency. Hence crypto is completely based on blockchain network. Basically miners oftenly check and verify the transactions that takes place over the network. 

History of Cryptocurrency:

The story of these virtual coins begins with a person: THE CRYPTOGRAPHER David Chaum. In 1983, the American developed a cryptographic system called ECASH . Twelve years later he developed another system , Digicash. that used cryptography to make economic transactions confidential. However , the first time the idea or term "cryptocurrency" was coined in 1998. That year, Wei Dai began to think about developing a new payment method that used cryptographic system and whose main characteristic was decentralization. It means that these types of currencies are not authorized by the government.  

Satoshi Nakamoto: The Crypto-Man:

In the year 2009-2009, as there was an on going global economic crisis, the so called Satoshi Nakamoto created the first cryptocurrency and named it as BITCOIN. An idea arose in him of creating a virtual currency so that to make payment system more easier and secure than the previous one. Satoshi just brought the change and development in this crypto field 

India And Cryptocurrency:

There always been an issue with the crypto and India. Since the transactions through these coins cannot be traced, which led to many illegal activities such as smuggling of drugs , human trafficing etc.

Around three years ago from now, through Government of India , Reserve Bank of India(RBI) to withdraw all the tie-up's with the individuals and business who had invested in crypto. But in March 2020, the Supreme Court derailed that plan. Due to many reasons RBI. In April 2018,RBi had banned banks from supporting crypto transaction. However recently Supreme court confirmed that there will no ban of cryptocurrency as of now in India.

How to buy cryptocurrency??

In this generation buying crypto is not a big deal , anyone can buy crypto if and only if he/she has a proper bank account along with pan card. One can buy these virtual currencies either from their official website or else from a investing platform such as coin switch, wazir x etc are some of the popular apps through which people can buy or sell crypto. All you have to do is that to download anyone of the apps above mentioned or else you can search for any other such apps in which you trust. Then get registered in that app and link you bank account to that app. So that you can buy or sell easily. Each currency has its own value as a normal physical currency has the range of value of a currency can vary from tens to lakhs. 

  Advantages of cryptocurrency:

As the coin has two faces , even use of cryptocurrency has advantages as well as disadvantages. Some of them are mentioned below.

• This is the best and easiest way to have transaction between two parties without the intervention of the third party such as banks.
• Transaction cannot be traced through this platform.
• Invested amount in crypto can be withdrawn or can be added to the bank account.
• It is user-friendly. Anyone who has knowledge about crypto can invest in it.
• Can accomplish one's monthly pocket money

Disadvantages of cryptocurrency:

• Transaction using crypto is semi-anonymous. i.e path of the transaction cannot to be traced or identified, this paves a way for many illegal activities as I mentioned above.
• It is addictive , so before getting into the crypto world one should be very careful and should be capable of bearing the losses which occur due to the downfall of market.

Some of the apps which are made as a platform to invest in cryptocurrency are as follows:

1. Binance.
2. Crypto App
3. WazirX
4. Coinbase
5. CoinDCX
6. Switch Coin Kuber.

You are free to use any of these apps to invest in cryptocurrency. As of now I use switch coin kuber.

Stay tuned till I get back to you tomorrow with another interesting topic.