What is Cryptocurrency?

What is a Cryptocurrency?

Concept

Cryptocurrency is a type of digital currency that neither distribute or regulate by central bank  or any fiat currency authority.It created by running a computer hardware systems together with other miners all around the world  repeatedly to solve specific formula or calculate hashes with the intention to create a successful block, and at the same time using encryption to ensure that all the transaction is secured.The explicit design of cryptography is allowing the owners to have “real possession” towards their cryptocurrency.Bitcoin is one of the most popular cryptocurrency in the world currenctly, with other alt-coin such as litecoin, bitshares and etc.

The first cryptocurrency to capture the public imagination was Bitcoin, which was launched in 2009 by an individual or group known under the pseudonym, Satoshi Nakamoto. As of February 2019, there were over 17.53 million bitcoins in circulation with a total market value of around $63 billion (although the market price of bitcoin can fluctuate quite a bit). Bitcoin’s success has spawned a number of competing cryptocurrencies, known as “altcoins” such as Litecoin, Namecoin and Peercoin, as well as Ethereum, EOS, and Cardano. Today, there are literally thousands of cryptocurrencies in existence, with an aggregate market value of over $120 billion (Bitcoin currently represents more than 50% of the total value).

 

Features

Cryptocurrency is a string of code that calculated by using computer hardware system, applying a mathematical formula turning the block into a hash through the graphic card and processor together with other miners around the world.However, whoever solved the puzzle first will owned this code and consider to have “real possession” in this asset.

Below are some features of crytocurrency:

1)Decentralization

Cryotocurrency does not regulates by any organization,country or authorithy.Tax does not apply to cryptocurrency transaction. Thus, it will not being freezed or controlled by any authorithy.

2)Open source command

The open source command and network URL will be fully transparent when launching a cryptocurrency.It might be a fraud if there is any transaction that not able to public above information.

3)Limited

The total circulation of cryptocurrency can be check though open source command and it should be fixed and accurate. For instance, the total circulation for Bitcoin is 21 million, with timeframe of 36500 days. This is because Bitcoin is created by applying cryptography,thus the calculation and circulation are deemded to be accurate and explicit at all time.

4)Going international

Everyone can trade cryptocurrency on international platform. The difference between cryptocurrency and other fiat currency.