What is cryptocurrency? 

  • Learn how easy it is to make money, 
  • The ways and benefits of using cryptocurrency and bitcoin: 

In this modern age where society is developing, electric cars are running, mobile phones are going digital, your money is also going digital. Yes, we are talking about cryptocurrency and bitcoin. Which is a lot of talk on social media these days. Today we will give you complete information about cryptocurrency and bitcoin. 

We will tell you how to use this digital currency, and about the benefits of cryptocurrency?
In other words, we can say that after this news, you can also think of a Cryptocurrency currency. 


What is cryptocurrency? 

Cryptocurrency is your money that is in the form of Digital. Which you can use in the digital world. Like on digital platforms you create your account and share your personality with people. In such a digital world, money has emerged as a Cryptocurrency currency.

Cryptocurrency is an invisible currency that works in the digital world. This cryptocurrency was introduced in 2009. And the first cryptocurrency was bitcoin. 

What is Bitcoin? 

Bitcoin was the first cryptocurrency launched in 2009 by an anonymous person or group called Satoshi Nakomoto. This person/group disappeared from the online community in 2010. 

What makes Bitcoin unique is that, unlike traditional currencies, neither the government nor the central bank issues cryptocurrencies, nor is it legally recognized, for example, to pay your taxes to Bitcoin. Can’t use for Instead, its price and volume of sales depend on its trading community. Like real currency, cryptocurrencies are built on trust. While paper currencies assure their customers that the country’s central bank is the guarantor of their value, cryptocurrencies operate on a variety of trusts that a computer algorithm can prevent fraud. 

Bitcoin can also be used without identity because unlike a credit card or bank account, no address or identification information is associated with your bitcoin account. And that’s why people are so interested in cryptocurrencies. But bitcoin is not as secretive as its fans or officials say. This may be tracked by your IP address, service provider, or spending patterns. 

It would not be wrong to say that most people are stunned by the idea of digital currencies because to understand what it means you have to think of a brand new side of technology. But basically, cryptocurrencies are not completely different from traditional money. 

A cryptocurrency is a virtual currency that is encrypted and express in code, which makes it secure and difficult to track. It has no appearance and is only exists in the memory of computers in the form of letters and numbers. These currencies can be obtained from online exchanges that only deal in cryptocurrencies. 

A powerful computer and a person with little knowledge can get them. Bitcoins are mined by powerful computers, which obtain bitcoins by finding solutions to complex mathematical puzzles. This, in turn, is verified by a network of users who play the role of a collective verification system called the blockchain. You can think of every bitcoin transaction as a bank account entry, but it involves the whole community, rather than the two parties, verifying the transaction so that there is no possibility of fraud. 

Unfortunately, bitcoin mining requires a lot of electricity. According to a report by PowerMayer, “[bitcoin mining], power consumption exceeds the electricity demand of 159 countries around the world.

According to Digicomonist, computers need 29.05 TW (1 million MW) of electricity annually to carry out bitcoin transactions. In addition, according to the Bitcoin Energy Consumption Index, the energy used in a bitcoin transaction can provide electricity to 10 US households for a full day. 

There are also server farms in China that use more electricity than entire cities for bitcoin mining. The demand for electricity for such mining of these currencies cannot be met in the long run. 

Are bitcoins and cryptocurrencies the future of money? 

The biggest problem for Bitcoin is that regulators and governments are reluctant to recognize it. Very few real-world financiers accept it and transactions are a headache. Its mysterious beginnings are detrimental to its reputation. But according to many experts in the digital world, one of the reasons for the popularity of bitcoin and other cryptocurrencies is the lack of barriers and regulations. But most of the world’s governments have banned cryptocurrencies in one form or another. Japan has an exception because bitcoin is legal there. 

According to US officials, bitcoin is the only way to escape the rules. According to Ben Bernanke, former head of the US Federal Reserve, bitcoin is an attempt to replace traditional currencies (fiat), to avoid regulation and government intervention. I don’t think it will succeed. It is also worth noting that so far no central bank or international financial institution has offered bitcoin or cryptocurrency. 

But the US government does not seem to be following its advice. The US Federal Reserve recently announced that it would launch its cryptocurrency. 

China initially promoted bitcoin but then banned the acquisition of coins through exchanges (Initial Coin Offering or ICO). This caused a stir in the cryptocurrency exchanges. ICO is the digital equivalent of the stock market IPO, in which buyers receive virtual coins of the soon-to-be-released cryptocurrency at a predetermined price instead of shares. 

But their stern warnings against the cryptocurrency could jeopardize international financial stability. In contrast, the People’s Bank of China announced that it has also formed a team to design its independent cryptocurrency. The flexibility of digital currencies is still attractive to people. 

The government of Pakistan has also outlawed cryptocurrencies and the official position of the State Bank of Pakistan is that it has no intention of legalizing bitcoins or cryptocurrencies in the future. But it has not made any difference to the flourishing of underground exchanges in Pakistan. You can still buy and sell bitcoins through Facebook, WhatsApp, websites, and other means. 

Another problem with bitcoin is its rapid change in value. It was initially touted as a global alternative to the sovereign currency, but in 2017 its value increased by 1,900% due to public interest and speculation. At the beginning of 2017, it was priced at 1000 1,000. Then in December, within a few days, the price dropped to 12 12,000, and then to,000 15,000. As of last news, it was priced at, 13,699. Any economist can say that such a currency cannot be a viable financial alternative. Money works when it can maintain its value, and consumers can trust how much they are paying for something. 

But even though we are still far from fully accepted for bitcoin and other related currencies, it will not go anywhere. The market capitalization of the cryptocurrency in December 2017 was 600 billion and according to some, it will reach one trillion dollars. 

Such bitcoins may become the currency of downloads in the future. Like torrents, bitcoins can be used by people who are interested in technology but want to avoid regulators and governments. 

But because governments and corporations want to launch their digital currencies. Given this, electronic money may take on a whole new look. Going forward a wide range of currencies could potentially exist. In which the real currency of the governments and the currencies being bought and sold on the exchanges may be on the other side. A currency may only be used to buy and sell certain products, services, or everything else. 

The popularity of bitcoin has had a positive effect on other cryptocurrencies, such as Ethereum and Light Coin, and new cryptocurrencies have sprung up. Digital money is in high demand. Each currency has introduced new features to differentiate itself from the other. ZCash, Dash, and Moniro have added another layer of identity protection to make themselves more secretive than all other cryptocurrencies. 

Then some cryptocurrencies are more suited to specific uses. Ripple, for example, is designed to handle banking transactions. FileCoin and Siaquin have been created to exchange money, while the fast-food chain ‘Burger King’ is also now focusing on creating its cryptocurrency. Some rap singers have launched their cryptocurrency. 

What is the meaning of Blockchain? 

Blockchain technology, based on bitcoin and other cryptocurrencies, promises to be accepted and legalized. It’s not just about transactions, it’s about revolutionizing all of our information storage, viewing, and authentication systems. Imagine that you do not have to rely on a centralized system for verifying information, and there is a widespread global system for verifying banking, revenue, land records, educational credentials, and so on. In which there are identical and unchangeable registers everywhere. 

Bitcoin transaction fees are lower than other traditional online payments. Bitcoin is a kind of Google document on which anyone can work, anyone can buy, anyone can sell. Bitcoin is built on a distributed digital record. This is called the blockchain. 

As the name implies. A blockchain is an interconnected body of data, called blocks, which contains information about each transaction, including date and time, total price, buyer and seller, and each exchange. There is a separate identification code for. The entries are linked in terms of dates. This creates a digital chain of blocks. Here are some ways to convert bitcoin into money, which is being used all over the world. 

Methods of Cryptocurrency Payment  

Just as you keep your money in a wallet to be safe, so too is cryptocurrency kept in an online wallet, so it is called an online currency. This is why money transactions are done online in bitcoin. Cryptocurrency is being used to promote online business. Now you may be wondering – what is the difference between the rest of the online payment and bitcoin payments? 

Through an online business or store business: One way is to choose the payment gateway (online business) or point of sale app (store business) that offers this service. Such as Bit Pay. Via cryptocurrency: 

If you are using the first method, the Gateway or Point of Sale app, which is converting your customer’s bitcoin cash into a digital wallet. You can convert it into money yourself through a trusted cryptocurrency exchange. 

We have a brand new era ahead of us and it will be interesting to see how cryptocurrencies and blockchain technology development in the coming era. Public interest in bitcoin and other cryptocurrencies will not end. 

Benefits of Cryptocurrency 

What are the advantages of bitcoin

  • The first benefit is consumer autonomy, ie consumers can buy and sell without any pressure or restrictions. 
  • Another important benefit that everyone will want to take is Bitcoin does not involve banking fees, while transaction fees for international buying and selling are significantly lower. 
  • Bitcoin is easily free and different from the method of bank credit cards and traditional banking systems. 
Source: Diverse case studies: