Finger Geek
Verified member
Cryptocurrency is a digital currency used in transactions of various goods and services. It is also an investment option, and some people earn a living by trading cryptocurrencies. However, many people don't know much about cryptocurrency. Let's look at what it is and how it works.
First, let's define what cryptocurrency is not. Cryptocurrency is not a fiat currency such as the U.S. dollar or the Indian rupee. It is also different from a government-issued currency such as the Chinese yuan or the Euro. Lastly, cryptocurrency is not backed by gold or other precious metals. Each cryptocurrency is based on a blockchain, which is a decentralized public ledger. Anyone can access the data in the blockchain and can transact with each other via cryptographic keys.
Because cryptocurrency isn't regulated, the market cap of a particular cryptocurrency changes frequently. This means that the value of all the cryptocurrencies in circulation changes daily- or even hourly- depending on supply and demand. Although the total market cap of cryptocurrencies is over 1,600 billion dollars, some cryptocurrencies have much higher market caps than others. Some of the most prominent cryptocurrencies are bitcoin, ethereum, ripple and bitcoin cash.
It's important to know that cybercriminals and terrorists use cryptocurrencies to fund their operations. They do this because they are anonymous and difficult to trace. Governments aren't able to stop this activity due to lack of regulation. However, most people who use cryptocurrency do so legitimately- which prevents them from harming society in more harmful ways than cybercrime and terrorism would allow.
Anyone can use cryptocurrency if they're willing to invest time understanding how it works. Cryptocurrency isn't going away anytime soon since it's rapidly expanding into new markets and usage scenarios. The world needs more informed citizens when it comes to cryptocurrency so that we can avoid scam artists and cybercriminals exploiting new technology for their own ends.
First, let's define what cryptocurrency is not. Cryptocurrency is not a fiat currency such as the U.S. dollar or the Indian rupee. It is also different from a government-issued currency such as the Chinese yuan or the Euro. Lastly, cryptocurrency is not backed by gold or other precious metals. Each cryptocurrency is based on a blockchain, which is a decentralized public ledger. Anyone can access the data in the blockchain and can transact with each other via cryptographic keys.
Because cryptocurrency isn't regulated, the market cap of a particular cryptocurrency changes frequently. This means that the value of all the cryptocurrencies in circulation changes daily- or even hourly- depending on supply and demand. Although the total market cap of cryptocurrencies is over 1,600 billion dollars, some cryptocurrencies have much higher market caps than others. Some of the most prominent cryptocurrencies are bitcoin, ethereum, ripple and bitcoin cash.
It's important to know that cybercriminals and terrorists use cryptocurrencies to fund their operations. They do this because they are anonymous and difficult to trace. Governments aren't able to stop this activity due to lack of regulation. However, most people who use cryptocurrency do so legitimately- which prevents them from harming society in more harmful ways than cybercrime and terrorism would allow.
Anyone can use cryptocurrency if they're willing to invest time understanding how it works. Cryptocurrency isn't going away anytime soon since it's rapidly expanding into new markets and usage scenarios. The world needs more informed citizens when it comes to cryptocurrency so that we can avoid scam artists and cybercriminals exploiting new technology for their own ends.