“Cryptocurrency” - a very popular word being used all over the internet right now! Are you one of those people who does not really understand what is cryptocurrency and you are struggling to stay relevant with whatever is going on with “Bitcoin”? Well, do not worry, you will find a simple and plain explanation of what is cryptocurrency and different resources that will further help you learn more about this form of currency! So, let’s get started!
What is Cryptocurrency?
In very simple words, cryptocurrencies are basically peer-to-peer currencies. They do not physically exist. This means, you cannot really pick up a Bitcoin in your hand and give it to someone else, as we do for normal physical notes. Also, it is digital money, so they do not have a central computer or server, they are basically distributed across thousands of networks of computers. Interesting so far, right? Well, it gets even better!
The BlockChain Technology.
Cryptocurrencies basically work around the system of Blockchain Technology! Now the question arises, what even is a blockchain? Do not worry, here’s a simple explanation of that -
Blockchain is a digital ledger where each time a transaction occurs, the details related to it are stored for public record.
For example, the moment you buy or sell Bitcoin, all the details will be stored on the ledger that utilizes blockchain technology.
Why Blockchain Technology?
Firstly, blockchain technology is decentralized, which means there is no central data center where transactions are stored. Which again means no one has central authority over virtual currency. Secondly, blockchain is also the most secure system developed on the internet. It cannot be easily hacked. Which means the transactions occurring on it are secure. Finally, transactions on the blockchain network can be settled very fast. Compared to traditional bank systems where sometimes the bank is closed, or your account is frozen for some reason. All these issues do not exist in the utilization of blockchain technology, and therefore it is very fast and reliable.
Why is there so much noise about Bitcoin?
Okay, first of all, Bitcoin is a very popular type of cryptocurrency. And before I move forward, there are a lot of different cryptocurrencies like - Ethereum, Litecoin, Bitcoin Cash etc. But our main focus is on Bitcoin (because that is the current trend!!). For a long time, the value of Bitcoin has increased slowly but steadily. It started with 1 BTC = $0.08 in 2010. But, as of today, the value of 1 Bitcoin = $54,923.60 YUP, it has increased massively since then. This sudden increase in Bitcoin happened because of our very own Elon Musk and Tesla. The company invested $1.3Billion into Bitcoin on Friday (19th February). Such a huge investment into this cryptocurrency led to such an increase of Bitcoin that the value went up to around $54,000. And after that investment, the total market capitalization of Bitcoin reached an all time high of $1Trillion. Now you have taken your first step into this world of cryptocurrency and why everyone is going gaga over Bitcoin!!
Resources to help you with cryptocurrencies!
Now that you probably have a very basic idea of what cryptocurrency really is, there is a lot that goes into this world of digital money, and we are here to provide you some links/articles that can help you get a deeper understanding of cryptocurrency! Because sometimes videos can explain complex topics better than words!
What Is Bitcoin? - AH, Yes, we go back to this legend - Tanmay Bhat. Here’s a very simple 10min video giving you the basics of cryptocurrency and what is Bitcoin. He explains everything in simple terms so it is a great watch!
How does a blockchain work - Simply Explained : So the above explanation of blockchain was very brief and it is always better to have a more clear picture of a topic. Hence this video clearly explains what a blockchain is.
Cryptocurrency Explained | What is Cryptocurrency? | Cryptocurrency Explained Simply | Simplilearn : Here is a simple video that explains everything about cryptocurrency in simple terms! You are welcome!
Cryptocurrency and the Future
The future of cryptocurrency does look bright. Because of the fact that there is no central authority, the security of transactions is very reliable, and people are starting to gain trust, opens a lot more opportunities for countries and governments! People around the world are starting to trust this whole system of digital money. But in time we will see whether it is a game-changer or not!
Hence, I hope you learned something new today about cryptocurrencies. To celebrate this massive feat, download the Lock&Stock App and unlock amazing offers and discounts today, by just simply locking your phone!