The modern era has made money the most reputable and approachable materialistic thing across the globe. Everything that is around us has a monetary value for what everyone has a specific approach. Every nation possessing its valid currency has its varied value upon conversion to others like 1 United States Dollar (USD) converts to 72.96 Indian Rupees (INR) at the time of writing. Similarly, 1 Canadian Dollar (CAD) converts to 55.62 Indian Rupees (INR).
Whenever it comes to monetary values, we always stumble across two specific words, which are either "Bitcoin" or "Cryptocurrency." The questions that come to our mind are, "What is a cryptocurrency?"; "What is a bitcoin?"; "How does cryptocurrency work?"; and so on.
What is a cryptocurrency?
A cryptocurrency is a digitally or virtually existing form of currency that has its base established through cryptography algorithms. Thanks to these asymmetric cryptography algorithms, it is nearly impossible to copy or counterfeit the cryptocurrency. Many cryptocurrencies are an establishment or enforcement on a network of computers, which is also known as a blockchain. One of the vital supremacy factors of a cryptocurrency over others is that it is not issued or governed by a central body. This factor makes this currency immune to all the unnecessary intervention or manipulation by government bodies.
There are many cryptocurrencies with varying conversion rates that are hovering across the global currencies. Bitcoin, Ether or Ethereum, and Tether are a few of many active cryptocurrencies.
What is a Bitcoin?
- Bitcoin is an open-source P2P cryptocurrency developed or invented by Satoshi Nakamoto using the C++ programming language.
- Satoshi brought and published up the research paper for bitcoin in 2008 or 2009 during the financial crisis while aiming to eliminate the middlemen between monetary transactions and end-users.
- Bitcoin brought in the purpose of removing all government bodies or institutions that intervene in the transactional processes or trust fund of a user.
- One bitcoin holding the equivalent value of $11,392.20, it represents more than 68% of the total aggregated value of all active cryptocurrencies.
Cryptocurrency behaves just like a debit card or bank credit. In both cases, a complicated algorithm is in operation that issues money and tracks transfers and balances to enable people to send and receive currency through electronic means. Just like banking, online services can be of use for account management and balance transfers. However, there is a crucial difference between cryptocurrency and banks. In the case of a cryptocurrency, an algorithm manages the currency and monetary transactions while holding the tracking ledgers. While in banks, the same processes take place via government bodies or institutions.