What is Crypto Currency & What is the need for Bitcoin - RapidOnlineBusiness

What is CryptoCurrency? Is it easy to understand?

Cryptocurrency is a digital currency or electronic currency. Bitcoin currency is not a currency produced or issued by any government or state. Mining has to be done by connecting to the internet through these various hardware. And in this mining process, each coin has to be made by completing various complex algorithms, blocks and cryptography. Efforts to invent cryptocurrencies have been going on for a long time. In the 1980s, researchers learned that it was possible or possible to invent such a currency from cryptography. But they failed to solve some problems. In 2008, an unknown researcher posted a paper on an Internet forum with a neat solution to those problems. His solution works surprisingly well. His solution is called block chain. The various processes of the blockchain algorithm initially take very little time (think 5 minutes) to generate a coin, but its difficulty increases over time. By doing this, it can be seen that the time taken to generate a coin is more than 15 days or 30 days. And with this difficulty, the coin rate increases. Example: Bitcoin, OneCoin, Litecoin, Ripple, Dogecoin etc.

We are all familiar with common currency. Such as BDT, Rs, Rupees, Dollars, Pounds, Euros, Taka, ZAR, INR etc. These currencies vary from country to country. They are produced and regulated by the government or central bank. The supply of this currency can increase or decrease at will. But each cryptocurrency cannot generate more than a certain amount of coins. For example, That being said, Onecoin can generate a maximum of 2.1 billion coins, which is amazing. Just as the value of our common currency, the dollar, is not the same and the value is not constant, so all cryptocurrencies are not the same and the value is not constant. As far as is known when Bitcoin hit the market its starting price was around $.10.

I am sharing a funny and sad story with you:

In May, 2010, a man named Lazlo Heinz bought 2 pizzas with his 10,000 bit coins. This was the first ever purchase of a product in Bitcoin. He did not understand the future of Bitcoin. Within just 3 years, the price of each bit coin stood at around 1200 USD. If 1 btc = 500$, then the price of 2 crabs is 50,00,0,00 $! Alas for Lazlo who could have been a millionaire but fell victim to misfortune and became nothing.

Bitcoin's incredible price explosion recently has everyone in awe. No one can mess it up anymore. Bitcoin futures are allowed to be traded on the Chicago exchange. Merrill Lynch, Bank of America, etc. are saying that it is not a bubble. There must be reasons behind this price hike. The reason is very deep. More technical and scientific than economic. Block chain has already been adopted as a promising new technology.

What is the need for Bitcoin or Crypto Currency?

As society and life progress, along with the progress of science, economic instruments are also progressing. The thing called currency has evolved a lot. First gold coins, then silver coins or metal coins and then it becomes paper currency. Advanced and powerful technologies are being used to prevent various types of fraudulent activities. Then came credit cards, debit cards. It made economic exchange easier. These can be called 'digital currencies'. But the most incredible advancements have come from crypto currencies. Let's highlight some of its characters.

1. It has no government or institutions. A large number of people around the world are circulating this currency through some sort of secure network. No one is the policy maker here. Everyone is a piece of cake Or so called, everyone is equal, just a medium in the network. This currency will move from buyer to seller directly, without any intermediary, safely and securely. There is no central form of this monetary system, it is completely decentralized. Its called a direct buyer-seller or peer-to-peer network, Which is simply called P2P transactions

2. Bitcoin allows anyone to send money from Ghana to China to buy anything in an instant. No bank issues, no currency exchange rate issues. There is no middleman, that is the design of this coin.

3. This currency can move quickly from one country to another. In case of Bitcoin it takes 10 minutes maximum. But some other cryptocurrencies can change hands in less time. But in the current currency transfer system, it takes a few days to go from one country to another.

4. Sending this currency from one person to another requires a nominal fee. Again this is not dependent on the amount of money sent. Same fee for sending one bitcoin and 100,000 bitcoins. Current money transfers cost a lot of money.

5. Cryptocurrency transactions cannot be faked. Once transferred, it cannot be withdrawn or changed in any way. It is being recorded on thousands of machines in various countries around the world. This transaction is irreversible.

6. Cryptocurrencies have no inflation. These types of coins is predetermined, so they cannot be overprinted like conventional money. Various countries are openly or secretly trying to increase their purchasing power in the international market by overprinting their currencies, resulting in currency wars. This is absolutely impossible in crypto currency. The maximum number of bitcoins is set at 2.1 crores.