Cryptocurrency: Explained!

 


   If the price of bitcoin goes down, i lose money. I might pump but i don't dump.
                                                                                                       -Elon Musk-
   
     A cryptocurrency is a virtual currency composed of a collection of binary data which functions as a medium of exchange using strong cryptography to prevent counterfeit. Cryptocurrency is so safe it employs blockchain technology which makes it difficult to change, hack or cheat the system due to its complexity. It has thus created an unsuitable environment for hackers and other cyber criminals making it difficult for them to conduct illegal businesses online. An added advantage of blockchain technology is that it can help the authorities to hunt down criminals through forensic analysis of cryptocoins.
      Cryptocurrency first evolved in the year 1983 when an american cryptographer David Chaum conceived an anonymous cryptographic electronic money he called e cash. He pressed on further to implement the idea through an early form of cryptographic electronic payment called Digicash. Bitcoin, the first decentralized, blockchain based and the world's most popular cryptocurrency was created by a developer assumed to be named Satoshi Nakomoto in the year 2009. As time went by, various cryptocurrencies such as litecoin, dogecoin, etherum, cardano and the likes were invented. As of August, there were over 18.8 million bitcoins in circulation with a total market cap of around $858.9 billion(trending).
     The cryptomarket tends according to supply and demand. Cryptocurrencies in general are decentralized and this enables investors to deal directly with each other without the interference of a trusted third party such as banks or credit card companies. This also makes them immune to numerous economic and political concerns affecting traditional currencies. Fund transfers between both parties are secured using public keys, private keys and various forms of incentive systems. In addition to this, transaction of funds are executed with minor processing  fees which contrasts sharply with the bulk fees charged by various financial institutions. 
     In recent times though, the cryptomarket suffered a huge setback. Just this past month, the Chinese government - the single largest market for cryptocurrency across the globe declared all cryptocurrency transactions illegal and banned the activities of miners and investors within China. Despite this huge setback, the cryptomarket is rising above its contemporaries. It is attracting huge investors such as Elon Musk among a couple of others. This has enabled the cryptomarket to keep expanding and gaining audience. Soon, it might become the official currency exchange market of the entire globe.

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