What is a cryptocurrency?
You must have heard about bitcoin or crypto currency or something either from a friend, cable news or a blog. Even if you have not heard, nothing to worry. In simple terms, it is a money. It is an electronic money to be precise. That is the easiest explanation that I can give you. This post and in the subsequent posts will educate you on cryptocurrency and how to make use of them.
A Cryptocurrency is an electronic medium of exchange. For security between the parties, it uses cryptography to encrypt the transaction. Also the creation and addition of units is controlled just like fiat money and gold reserves in central banks. Almost everyone with a connection to the internet knows Bitcoin. For starters, this is the most successful cryptocurrency today. However, there are other cryptocurrencies in existence. These are often called altcoins or Bitcoin alternative.
What makes Bitcoin successful is its decentralized control. This means that unlike conventional currencies, it cannot be influenced by any central bank in the world. How did any cryptocurrency come to be? There were ideas in the nineties to come up with cash distribution systems that were secure. The idea was to get rid of all the unnecessary rules and regulations by the bureaucratic governments and ease payments over the internet. Also there was the need to fasten payment options as the electronic commerce was ever growing creating new businesses daily. This led to creation of Bit gold.
What is Bit gold?
As was stated earlier, this was the first ever cryptic payment means. This payment system followed the logic that each payment required the user to show proof of work. This completed was encrypted and by doing so, the user was allowed to use Bit gold. The problem with this, is that it was cumbersome and would only be used once.
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