Explained: What is cryptocurrency? Know All About Bitcoin, Ether, Dogecoin

There has been a lot of curiosity in the minds of people about cryptocurrencies for the past few months. This has happened due to the tremendous volatility in the cryptocurrency currency in the past. 

This year there is a lot of discussion about cryptocurrencies around the world. At the beginning of the year, digital currencies like bitcoin, dogecoin made a huge jump, but by the time of May, it became a whole lot. All the profit it had made, it was gone. Now slowly they are gaining momentum again. In this way, there is a tremendous curiosity in the minds of people about cryptocurrencies. Let us know what is cryptocurrency really? 

What is cryptocurrency?

Cryptocurrency is a digital currency that has value but cannot be seen or touched. It is only in digital form that transactions can be done online. The way the governments of the country issue currency or paper notes or coins in exchange for a fixed value, it is not a currency at all. Digital currencies are encrypted i.e. coded, hence they are also called cryptocurrencies. Its transactions are managed by the ledger which ensures its transparency. It is all encrypted. Initially, there were a lot of apprehensions about its value. There was a time when only two pizzas could be bought with 10 thousand bitcoins. Today it is the most expensive token money. Several companies have also announced to accept cryptocurrencies. 

Some South American countries have recognized cryptocurrencies but there are no formal guidelines for this. Almost all countries including India, USA have not yet recognized cryptocurrencies. Therefore it is not valid. But the central banks of many countries are moving in this direction. Cryptocurrency is banned in India but RBI recently said that it is considering to bring its own digital currency. 

There are many reasons why cryptocurrency is becoming so popular
, but the biggest reason is that it has started getting more returns than expected. The 10 thousand bitcoins with which two pizzas were once bought, now the price of that one bitcoin is around Rs 17 lakh. Many people are investing real money in buying bitcoins in the hope of good returns. Tesla owner Elon Musk has said that cryptocurrency could prove to be the currency of the future. 

How cryptocurrencies are trader

Bitcoin, Ethereum, Tether, Binance Coin, Cardano to name a few popular cryptocurrencies , of which bitcoin is the oldest. It was started in 2009 after a huge economic downturn in 2008. It was created by a pseudonym Satoshi Nakamoto.  

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