The ‘’Crypto’’ word is derived from an ancient greek word ‘‘kryptós,’’ which means private or hidden. Cryptocurrencies or virtual currencies are digital currencies using cryptography technology for security.
A virtual currency that is used and created by private groups or individuals has multiple advantages. Digital currencies are decentralized, meaning no central government body or institutions can manipulate or control anything.
No digital currency mints coins or prints money. Everything is performed online without any third party involvement. Fiat currencies are created by government and then made available to public through banks. As already mentioned above, digital currencies are decentralized. They are created, regulated and exchanged by its users.
Cryptocurrencies’ Biggest Benefit
The biggest benefit of cryptocurrencies is that they are not controlled by any financial institution or central authority, meaning they are 100% free from government manipulation and interference.
The supply and value of cryptocurrencies are controlled by its users through highly complicated protocols using p2p network. Bitcoin is the mother of all cryptocurrencies. Satoshi Nakamoto, a pseudonymous individual, is the brain behind Bitcoin.
In 2009, he introduced Bitoin as an electronic payment system based on a p2p network that is run by cryptographic proof without relying on a third party system.
Avoiding Imitation and Double Spending
To avoid issues such as imitation and double spending, all bitcoin transactions are verified and recorded on a public ledger called blockchain. Each transaction is viewed as a case-sensitive address that anyone can produce to receive the coins.
All cryptocurrencies other than bitcoin are known as Altcoins, which aim to either improve or replace upon Bitcoin. They vary from each other, each promising features such as more secure privacy, faster transaction speed, proof-of-stake, and more.
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