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Cryptocurrency definition, its type, and technology behind it.

Cryptocurrency definition, its type, and technology behind it.
  Cryptocurrency - Btc to Inr

Cryptocurrency

 What Is a Cryptocurrency?

A cryptocurrency is such type of electronic currency/digital currency that is secured by latest technology call Cryptography.almost all cryptocurrency are decentralized network based on mind following technology block chain. Cryptocurrency are currency of feature that is not issued by any central authority or govt agency.



Understanding technology behind Cryptocurrencies


Cryptocurrency based on blockchain technology that allow for secure payment online between two party without interfering of third party,the payment denominated in term of virtual token which are repersented by ledger entries internal to the system,Cryptocurrency based on encryption algorithms and cryptographic technology that safeguard entire txn. 


What is the different Types of Cryptocurrency  (>>>)


The first cryptocurrency born in 2008 and invented by unkone programer.The first cryptocurrency was bitcoin and based on blockchain technology,there are 1000 of cryptocurrency known today that is based on different technology,function,and specifications.Bitcoin was first crypto launched in 2009 by a group of unknown programer Satoshi Nakamoto. There were 18 million bitcoins in circulation with a total market value of around $146 billion

Today, $214 billion—is the agreegate value of all cryptocurrency in the world,that is total 68% of the total value.

Special Considerations of cryptocurrency 


The Central functionality of bitcoin, and all other cryptocurrency based on blockchain technology, Blockchain technology is online ledger that is quite secure and it enabled the user for making payments over the internet most securely. 

All transaction is conform by a network of computer volunteer and recorded to blockchain, it is transparent and in public domain. In the meantime Every new block generated must be verified by each node before being confirmed, making it almost impossible to forge transaction histories. 

The mind blowing technology behind blockchain get attn of many experts, they see blockchain technology as having serious potential for uses like online voting, crowdfunding etc... America's major financial institutions like JPMorgan (JPM) see the blockchain technology has potential to lower the transactions cost by streamlining payment. 

But the main drawback is that it is not liking a fiat currency, it stores only in digital wallet (Program wallet) and secure by only back key and private key, Cryptocurrency balance can be wiped out if we lost or destruct hard drive of computer, in other hand there are no any way to get your financial information by agency or government.


**Advantages of cryptocurrency

The most advance feature of cryptocurrency is Making transfer between two parties without any intermidiarty trust like bank,private agency or credit card company,and this trasfer are secured private keys,

Today cryptocurrency user have wallet where they use public and private key,private key are use for sign,due its hassel free transaction low fee and time factor lots of major financial institution prefer it.


Disadvantages of cryptocurrency

While cryptocurrency have lots of advantage but some feature of this cryptocurrency fell in disadvantage categrious to also..

Like semi-anonymous nature of the cryptocurrency transactions,it is famous in illegal activites like tax evasion or money laundering,thats why some country of world not allowed cryptocurrency trade in thier region. 

But bitcoin is not more suitable for those who want to do illegal business online,since forensic analysis of blockchain has helped autorities to arrest,mostly illegal business doing with Dash,Monero,or Zcash which is more difficult to trace identity of user.


**why cryptocurrency alway live in criticisms

Cryptocurrency are alway live in Criticism due to its voatile properties.Price of crypto currency depended upon demand and supply.the rate at which cryptocurrency exchange for another currency can fluctuate widely,and this fluctuation arise high degree of scarcity in prople. 

From the date of bitcoin birth we have see rapid bull and collapes,the bitcoin value climbing as high as 20,000 usd in Dec.2017 and also see major drop upto $7000 level in just 2 month of high value. 
This type of high degree fluctuation and unlike fiat currency it is only in digital mode make some economists scarry and they belive cryptocurrecny are short-lived asset or even speculative bubble.
 
The technology behind blockchain are highly secure,but other aspect like wallet,exchanges are not immune to the threat of hacking.in the history of bitcoin life span there are several time when major exchanges are hacked and millions of coin stole.

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