CRYPTOCURRENCY :

Introduction:

A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Cryptocurrencies are classified as a subset of digital currencies and are also classified as a subset of alternative currencies and virtual currencies.

Bitcoin, created in 2009, was the first decentralized cryptocurrency. The real identity of it’s creator is not known but most probably the name found for its invention is Satoshi Nakamoto. Since then, numerous cryptocurrencies have been created. These are frequently called altcoins, as a blend of bitcoin alternative. The decentralized control is related to the use of bitcoin's blockchain transaction database in the role of a distributed ledger. At that time its value was 0.001$. Bitcoin is the first ever decentralised currency, a fact which plays a big part in it’s ever increasing popularity

Types Of bitcoin:

Here are a few of the best in terms of UI, usability and low fee price:

1 - Local Bitcoins
2 - Coinbase
3 - Coincorner
4 - Cryptonator

Overviwe:

Decentralized cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is defined when the system is created and which is publicly known. In centralized banking and economic systems such as the Federal Reserve System, corporate boards or governments control the supply of currency by printing units of fiat money or demanding additions to digital banking ledgers. In case of decentralized cryptocurrency, companies or governments cannot produce new units, and have not so far provided backing for other firms, banks or corporate entities which hold asset value measured in it. The underlying technical system upon which decentralized cryptocurrencies are based was created by the group or individual known as Satoshi Nakamoto

History

In 1998, Wei Dai published a description of b-money, an anonymous, distributed electronic cash system. Shortly thereafter, Nick Szabo created bit gold. Bit Gold was an electronic currency system which required users to complete a proof of work function with solutions being cryptographically put together and published. A currency system based on a reusable proof of work was later created by Hal Finney who followed the work of Dai and Szabo. The first decentralized cryptocurrency, bitcoin, was created in 2009 by pseudonymous developer Satoshi Nakamoto. It used SHA-256, a cryptographic hash function, as its proof-of-work scheme.

Publicity:

Central bank representatives have stated that the adoption of cryptocurrencies such as bitcoin pose a significant challenge to central banks' ability to influence the price of credit for the whole economy. They have also stated that as trade using cryptocurrencies becomes more popular, there is bound to be a loss of consumer confidence in fiat currencies. Gareth Murphy, a senior central banking officer has stated "widespread use [of cryptocurrency] would also make it more difficult for statistical agencies to gather data on economic activity, which are used by governments to steer the economy". He cautioned that virtual currencies pose a new challenge to central banks' control over the important functions of monetary and exchange rate policy.