Cryptocurrency is also known as “the money of the future”. Although people, governments, many companies, and banks know that it is very important but remains misunderstood and geeky. Ultimately the government wants to take steps into creating a moneyless (hard cash) society where people use digital currency.
What is Cryptocurrency and Where did it all start?
In 2009 a developer called Satoshi Nakamoto created an algorithm for cryptocurrency, called Bitcoin. Bitcoin was also known as the “proof of work Electronic transferable cash system”. In short, it was a secure way to get paid for services rendered.
In 2011 Namecoin was created, which was the first Altcoin. The main purpose was to restrict people from spying on the information of others. From there many types were created, as the previous versions popped up with improvable areas.
Cryptocurrency is an algorithm that was created to be used as a normal currency, such as GBP, only more secure. Cryptocurrency was created to exchange money/ currency in a secure “crypto universe” that is bulletproof for outsiders to penetrate.
Cryptocurrency can also be described as electricity that is written into coding that has monetary value. In short, cryptocurrency can be described as digital money/ currency.
What happens when you do cryptocurrency transactions?
After your transaction is completed it cannot be reversed. No one will be able to help you reverse this transaction, not your bank, not the president…no one. There is no safety net if you get hacked or if someone hacks into your details.
No accounts or transactions are connected to identities in the real world. Bitcoins are received when transactions are actioned. You will be able to monitor the flow of the transaction, but you will not be able to connect the transaction to the Bitcoin address.
3. Global and Fast:
Your transactions are generated almost instantly into the “crypto universe”, where it gets confirmed in a few minutes. Because of the global network of computers, the “crypto universe” does not tie the transaction down to your location, it does not matter if you send the money to your neighbour or your boyfriend halfway around the world.
When cryptocurrency is sent, it is locked in the “Fort Knox” of the cryptocurrency system. In short, it is impossible to break the cryptography system.
There is no gatekeeper who regulates who may use cryptocurrency and who may not. All you need to do is download the software and install it. Once installed, you can receive and send cryptocurrencies.
Types of Cryptocurrencies
The first and most popular type of coin.
Second most popular of the cryptocurrencies, also known as “the brainchild”.
One of the less popular because of it being a network to process IOU’s and not about actual cryptocurrency.
Litecoin was one of the first cryptocurrencies after Bitcoin was launched, however, it is faster and lighter than Bitcoin.
Montero was created to fill the gap of privacy that Bitcoin lacked.