Confused with Cryptocurrency? Come, let’s know this ‘secret’ currency openly

Confused with Cryptocurrency! Come, let's know this 'secret' currency openly | Cryptocurrency
Confused with Cryptocurrency! Come, let’s know this ‘secret’ currency openly | Cryptocurrency
Simply put, cryptocurrency is a digital cash system, which is built on computer algorithms. It stays online only in Digit form. There is no control of any country or government on this.

Dayan Vishwakarma / New Delhi: There is a lot of discussion about cryptocurrency these days.  Bitcoin is a cryptocurrency.  In this article, we will tell you about this cryptocurrency in detail.  We will introduce you to every aspect of it, as well as tell whether it is a trend in India or not, how will it be used in future?  Our expert Kshitij Purohit has openly told us about the complete ABCD of Cryptocurrencies.

What is Cryptocurrency?

Cryptocurrency is a word made up of two words.  Crypto which is a Latin word derived from cryptography and which means hidden / hidden.  Whereas currency also comes from Latin currentia, which is used for money-money.  So cryptocurrency means hidden money.  or secret money.  Or Digital Rupee.  Kshitij Purohit, Lead of International & Commodities Research, Capital Via Global Research Ltd., who has a deep understanding of cryptocurrencies, explains that generally cryptocurrencies are a kind of digital money, which you cannot touch, but you can keep.  That is, it is a digital form of currency.  It is not in your pocket in a solid form like a coin or note.  It happens completely online.

Understand it in simple language in such a way that every country has its own currency.  Like India has Rupee, America has Dollar, Saudi Arabia has Rial, England has Euro.  Every country has its own currency.  That is, such a money-system which is valid by a country and the people there can buy essential things using it.  That is, which has any value, it is called currency.

READ MORE: Now get interest on Cryptocurrency at the rate of 24% per annum and also take loan | Cryptocurrency

Who made Cryptocurrency and why?

Regarding this, Kshitij points out that a lot of people believe that cryptocurrency was started by Satoshi Nakamoto in 2009, but it is not so.  Even before this, many investors or countries had worked on digital currency.  The US created in 1996 prime electronic gold, gold that could not be kept, but could be bought from other things.  However, in 2008 it was banned.  Similarly, in the year 2000, the Netherlands had linked cash to smart cards to fill petrol.

Bitcoin Most Expensive Virtual Currency

Simply put, cryptocurrency is a digital cash system, which is built on computer algorithms.  It stays online only in Digit form.  There is no control of any country or government on this.  Initially it was declared illegal.  But later due to the increasing popularity of Bitcoin, it has been legalized in many countries.  Some countries are even bringing their own cryptocurrencies.  Bitcoin is the most expensive virtual currency in the world.

READ MORE: Take these 3 steps to dip your toes in crypto investing responsibly | Cryptocurrency 

How does Cryptocurrency work?

The popularity of cryptocurrency currencies has increased over the past few years.  They are used through blockchain software.  These digital currencies are encrypted ie coded.  It is managed through a decentralized system.  In this, each transaction is verified by digital signature.  Its records are kept with the help of cryptography.  Kshitij explains that buying through this is called Cryptocurrency Mining because every information has to be created digitally in the database.  Those who do this mining are called miners.

To understand more in simple language, cryptocurrency is a virtual currency based on blockchain technology which is secured by cryptography.  All this work is done through powerful computers.  Kshitij even says that it is almost impossible to copy its code.

How is the transaction done in Cryptocurrency?

Whenever a transaction occurs in cryptocurrency, its information is recorded in the blockchain, that is, it is kept in a block.  The work of security and encryption of this block is done by the miners.  For this, they solve a cryptographic puzzle and find the appropriate Hash (a code) for the block.

READ MORE: Words/technical terms used in cryptocurrency | Crypto

What happens after finding the hash in Cryptocurrency?

When a miner secures a block by finding a strong hash, it is added to the blockchain and verified by other nodes in the network.  This process is called consensus.

What happens after consensus is reached in Cryptocurrency?

If the consensus is reached, the block is confirmed to be secure.  If it is found to be correct, then cryptocoin is given to the miner who secures it.  It is a reward which is considered to be proof of work.

How many types of Cryptocurrency?

Now a question is also arising in the mind that if it is in digital form then how many types are there.  Regarding this, Kshitij Purohat says that if seen, there are more than 1800 crypto currencies available.  Which you can also use apart from Bitcoin.  There are Ethereum (ETH), Litecoin (LTC), Dogecoin, Faircoin (FAIR), Dash (DASH), Peercoin (PPC), Ripple (XRP).

READ MORE: Blockchain-powered Automated Clearing House (ACH): An Evolution in Clearing House Solutions

How to trust cryptocurrencies?

Horizon says that people predicted that bitcoin would end around $180-$200.  But with the mass adoption by the masses it is gaining more trust.  In the last quarter, about $700 million dollars were added to the market cap of bitcoin.  However, the price has almost more than doubled since September 2020.

Many countries are going to bring cryptocurrencies

Although it has been debated that this bubble is in space and can burst at any time, it has become more valuable with the widespread acceptance and entry by new investors.  It has to be trusted because many countries are now considering bringing their own cryptocurrencies.  Earlier the government was contemplating to ban it, but now it has seen softness.

Who are the Indian market players in Cryptocurrency?

Bitcoin Wallet is very similar to our mobile wallet.  Where we store our money and do transactions from it.  WazirX, Unocoin, Zebpay are Indian companies that are in the business of bitcoin.

READ MORE: Crypto assets as National Currency? One step too far

What is the WazirX Finder called?

Nischal Shetty, Founder and CEO of WazirX said in an interview, ‘There is a lot of confusion about this in India right now.  Because there is no regulation for this in the country.  People get scared when they hear about it.  In fact, a lot of things on the Internet are unregulated.  E-commerce including ola, uber are also unregulated.  The most important thing for investors is that if not regulated, the chances of fraud and scam increase.

How to buy and sell Cryptocurrency?

The answer to this question has also become easy now.  Due to the increasing popularity, there are now many crypto exchange platforms in the market.  In such a situation, it is quite easy to buy and sell cryptocurrencies like Bitcoin and Dogecoin in the country.  Popular platforms include WazirX, Zebpay, Coinswitch Kuber and CoinDCX GO.  Investors can also buy other cryptocurrencies such as Bitcoin, Dogecoin and Ethereum from international platforms such as Coinbase and Binance.

The most important thing is that all these shopping platforms are open round the clock.  The process of buying and selling cryptocurrencies is also quite easy.  All you need to do is sign up on these platforms.  After this, after completing your KYC process, money will have to be transferred to the wallet.  After that you will be able to shop.

READ MORE: What is Zero Transaction Fee Crypto Coin TRON, How it Works; And how can you buy?

What can be done with Cryptocurrency?

The world’s most expensive diamond has been bought with cryptocurrency in July.  It has become clear from this that material things can also be bought from this in future.  However cryptocurrencies cannot be printed in the room of notes and coins.  But still it has its value.  With Cryptocurrency, you can buy, trade and invest goods, but you cannot keep it in your vault.  Nor can they be kept in the locker of the bank.  Because it stays online in the form of Digits.  It is also called digital money, virtual money and electronic money.  Its value is much more than the physical currency.  Some of the top cryptocurrencies are worth thousands of times more than a dollar.

What is Cryptocurrency Market?

The place where the trading and trading of cryptocurrencies takes place.  It is known by names like Cryptocurrency Exchange, Digital Currency Exchange (DCE), Coin Market and Crypto Market.

READ MORE: What are crypto airdrops and how do they work?

What is the future of crypto?

Two things are most important about Bitcoin – one, it is a digital currency used through the Internet and second, it is seen as an alternative to traditional currency.  Cryptocurrencies are currently facing a crisis of trust.  Governments view this with suspicion and consider it a threat to the traditional currency.  Governments also feel that cryptocurrencies are part of a virtual world that is trying to break free from government control and is trying to run parallel to the real world.

What is the stand of the government for Cryptocurrency?

The important thing is that the central government can completely ban cryptocurrency in the new proposed bill.  In this regard, a committee was constituted by the Center in the year 2017.  This committee had proposed to ban cryptocurrency.  In such a situation, cryptocurrency experts believe that in the coming days, the government can take a decision to ban all crypto currencies.

READ MORE: How to Mine Crypto in 2022 – Android and Computer Crypto Mining Tutorial

Can you really buy something like a car with cryptocurrency?

In response, Kshitij says that yes, crypto is like an Indian rupee which has its own value.  Right now, crypto is not accepted by most of the government around the world.  When this happens, we will have access to crypto currency like any other currency.  Because it will be part of the ordinary exchange between the people.

Source: Aajtak, Direct News 99

Leave a Comment