Cryptocurrency is designed to make virtual transactions as the medium of exchange and is a form of digital currency. This virtual currency or cryptocurrency uses cryptography to verify and secure the transactions.
Basically, Cryptocurrencies are a list of limited entries in a database that cannot be changed until certain conditions are fulfilled.
Cryptocurrency transactions are well-suited for activities, such as money laundering and tax evasion.
The first decentralized cryptocurrency launched was Bitcoin, in 2009. The decentralized means the use of bitcoin's blockchain transaction database instead of a distributed ledger.
Previously, finding a merchant who accepts bitcoin was a difficult task. Today, the situation is completely different and the merchants are increasing day today.
Since then, numerous cryptocurrencies like PPCoin, Namecoin, and Litecoin have been created. There are more than 700 cryptocurrencies available in online markets for trade, as of early 2017.
Cryptocurrency exchanges are a kind of digital platform which allows us to exchange one type of digital asset with another based on the market value of the given assets.
Some of the most popular exchanges are Binance and Gdax. Most people confuse cryptocurrency exchanges for crypto-wallets.
Crypto wallets generally allow you to make purchases with a small range of popular digital assets like Bitcoin and Ethereum, which can be sent to a different exchange to trade.
Most cryptocurrency exchanges will allow their users only to trade digital assets for digital assets, but some allow trades of fiat currencies like dollars for cryptocurrencies.
Kraken is an example of exchanging cryptocurrencies for fiat currency, It accepts funds in the form of JPY, USD, GBP, and CAD, and supports trades like Ripple, Monero, and Litecoin.
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There are many merchants available both offline and online who accept bitcoin as a mode of payment. These merchants range from large retailers like Newegg and Overstock to mini businesses, restaurants, and bars.
Bitcoins are used to make transactions and make payments for flights, hotels, apps, computer accessories, and even jewelry.
Various virtual currencies such as Ripple, Litecoin, Ethereum, and many others are not widely accepted as bitcoin. Apple has started accepting cryptocurrencies as a form of viable payment on the App Store.
The market of cryptocurrencies is fast and wide. Every day, new cryptocurrencies emerge, old die, early adopters get wealthy and investors lose money.
Cryptocurrencies are gaining legitimacy as a protocol for business transactions, micropayments, and overtaking the popular remittance tools.
People all over the world buy Bitcoin to protect themselves against the devaluation of their national currency.
Mostly in Asia, a vivid market for Bitcoin remittance has emerged, and the Bitcoin using the darknets of cybercrime are flourishing. More and more companies discover its power and adopting this emerging technology.
The revolution is already happening.
Bitcoin is the way out, and cryptocurrency as A whole is never going away, it’s going to grow in use and acceptance as it matures.
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The main characteristics to consider in Cryptocurrencies are:
A cryptocurrency's market capitalization denotes the complete worth of all coins in existence. Daily trading volume: it is the value of the coins that exchange hands every day.
Instead of employing the oldest and most common method like proof of work, which requires a massive amount of energy, Proof-of-stake systems let users verify the transactions.
This methodology requires less processing power to operate and claim transaction speeds quicker.
Every user must equip with the knowledge of where a cryptocurrency can be used, before investing in it.
A few cryptocurrencies are widely accepted, among major retailers. However, many have limited acceptance, and can only be exchanged for other cryptocurrencies.
Some coins are specifically designed to fulfill variant purposes.
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Cryptocurrencies are an exciting new development in the world of finance. No one is quite sure yet where the technology will lead, but the fact remains that these new currencies offer possibilities that traditional cash can't.
Today cryptocurrencies have become a global phenomenon known to most people. Many people, banks, governments, and companies are aware of its importance.
Cryptocurrencies have emerged as a hope that there is a currency that preserves value, facilitates exchange, and is entirely out of the influence of centralized banks and authorities.
Arogyalokesh is a Technical Content Writer and manages content creation on various IT platforms at Mindmajix. He is dedicated to creating useful and engaging content on Salesforce, Blockchain, Docker, SQL Server, Tangle, Jira, and few other technologies. Get in touch with him on LinkedIn and Twitter.