Cryptocurrency is a thing which is not relatively new. From 1983, a new currency plan was planning to made by some cryptographers. But at first let us know why there is need of cryptocurrency. All our transactions that may be offline or online it happen because there is a third party whom the payer and buyer both trusts. But this involvement of third party is cost effective as a portion of money have to given to them to keep the process alive. And there are various currencies in various countries.
So if anyone want to send money from one country to other country they have to change their currency that also have huge drawback of normal currencies. So some people thought they should make such currency that is free of third party and can sent easily from one nation to other. But as it is not benefitable for the govt., banks and some money laundering case may happen, it is restricted by most of the govt by applying law.
What is Cryptocurrency?
Cryptocurrency is a digital money which is decentralised and free of third party. It means cryptocurrency is not regulated or controlled by anyone but only by the investors and customers and this process is maintained by blockchain method which is described in the post later. A limited number of cryptocurrency was there in digital world. It can be obtained by numerous search by the people through high graphics computer. When they are found they can be sold by the founder. The availability and market hype decides the price of particular currency. As there are limited number of currencies so it is assumed that the price of each currency will only rise but can crash too. So it is told that investment in cryptocurrency have higher risk but at the same time it have higher returns than any other scheme available by the govt in the market.
Progress of Cryptocurrency:
Though there are numerous restrictions throughout the world, progress and arrival of various cryptocurrencies kept coming. At present there are several popular bitcoins present in the market which is available in the most of the country. But as it is not proclaimed by the govt it mainly did not involve any banks.
How Cryptocurrency Works?
Cryptocurrency works in a special method which is known as blockchain method. This method became so popular that even banks and govt use this technique as they are very effective to protect from hackers. This is a decentralised method of data storing where data have been stored in numerous places in the world but not in a single place. So even hacking occurs, it is not possible hack the whole system.
Present Situation of Cryptocurrency:
As modern era is exploring more and more in various segments people have grown more interest in the cryptocurrency. Big tech companies like Fcebook are wanting to start their own cryptocurrency as it will have immense power in future days. We can`t predict but one day it may accept by the govt as people are pressuring the govts to include under the monetary systems. If it was not accepted by the govt then also it will remain in the digital market because people value the cryptocurrency.