Let's Brief: What is cryptocurrency?
Good Morning Bulb Family!
Hello everyone! I hope you're all doing well. Today, I found myself feeling a bit bored, so I decided to scroll through Facebook. As I was browsing, I stumbled upon a post related to cryptocurrency, and it caught my interest immediately. Unfortunately, I forgot to copy the link to the post, but I was intrigued by the comments section. I noticed that many people seemed to be unaware of cryptocurrency and its potential.
This sparked an idea in my mind – why not write an article to spread awareness about cryptocurrency? It's a fascinating topic that I believe more people should know about. By sharing information and insights, we can help others understand the world of cryptocurrency better.
I'm excited to embark on this journey of spreading awareness, and I hope to make a positive impact.
Note: This article is also published on my read.cash account.
Now, I think it's time to delve into today's topic. But before I begin, if you haven't checked out my previous articles, I encourage you to do so.
Random Questions: Let them ans.
So, without wasting time let’s come to our topic. Today my topic is “Let's Brief: What is cryptocurrency?”.
Let’s Start our article:-
Let's Brief: What is cryptocurrency?
Image from Unsplash
What is cryptocurrency?
Cryptocurrency, in simple terms, is a digital asset. Similar to traditional assets, you can purchase cryptocurrencies using real money. Once acquired, these digital assets, or crypto, can be used to buy services and goods, just like other digital banking services. To draw a comparison, you can think of cryptocurrency as chips in a casino – bought with real money and then used for transactions and purchases in the real world.
How It Works
When a transaction occurs, it undergoes verification across numerous networks of computers that form the blockchain. Blockchain transactions are decentralized, as they're verified by multiple connected computers, making them more secure than centralized currencies.
Now, let's delve into the value of cryptocurrency
The value of cryptocurrency is akin to Non-fungible tokens (NFTs), meaning it fluctuates based on demand. Similar to fine arts or real estate, cryptocurrency values vary over time. For instance, real estate prices in the US dropped by 33% in 2008 but rose by 50% in 2018. This fluctuation depends on public interest and market dynamics.
How many cryptocurrencies are there?
According to CoinMarketCap.com, there are more than 10,000 cryptocurrencies actively traded on public platforms. Cryptocurrencies continue to proliferate, with new ones emerging through initial coin offerings (ICOs). As of August 18, 2021, the total value of all known cryptocurrencies exceeded 1.9 trillion US dollars, down from 2.2 trillion USD in April 2021.
Despite this decrease, the total value of the most popular cryptocurrency, Bitcoin, was $849 billion in August 2021, although it had decreased from the previous value of 1.2 trillion US dollars. The best cryptocurrencies, based on their market cap, are arranged as Bitcoin, Bitcoin Cash, Ethereum, Binance Coin, Tether, Cardano, XRP, and others.
Why are cryptocurrencies so popular?
Several factors contribute to the popularity of cryptocurrencies among their supporters:
- Supporters view cryptocurrencies like Bitcoin as the currency of the future and invest in them as assets, expecting their value to increase over time.
- Some supporters believe that central banks manipulate the value of traditional currencies through inflation, and cryptocurrencies offer an alternative by decentralizing control over money supply.
- Others consider cryptocurrencies safer than traditional payment systems due to the security provided by blockchain technology.
- Speculators are attracted to cryptocurrencies because their value tends to appreciate over time, regardless of long-term acceptance as a currency.
How do I buy cryptocurrency?
While some cryptocurrencies can be purchased directly with US dollars, many can only be bought using other cryptocurrencies. This process involves exchanging one cryptocurrency for another; for example, using Bitcoin to purchase another cryptocurrency. To buy any crypto, you need a wallet for that currency, which is typically an online mobile application. You can register your account on this app by following simple steps. These apps serve as exchanges, allowing you to use real money to buy cryptocurrency, which is then stored in your wallet app. Coinbase is one of the most popular crypto wallets and exchange platforms, offering users the ability to buy, sell, and trade various cryptocurrencies on a single platform.
Are cryptocurrencies legal?
Cryptocurrencies are legal in many countries, but there are some, such as China, that have banned crypto trading. Therefore, buyers should exercise caution to avoid fraudsters when purchasing cryptocurrency.
Should I buy crypto?
While cryptocurrencies offer potential for profit, they are also highly volatile and speculative investments. It's advisable to consider stock trading in well-established companies, which generally carry less risk.
Ending Thoughts
I hope you found this blog informative and insightful. Cryptocurrency is a fascinating topic with a lot of potential, and I believe it's essential to spread awareness about it. By understanding how cryptocurrency works and its various aspects, we can navigate this evolving financial landscape more effectively.
Thank you to all the readers for taking the time to engage with this article. Your support and feedback are truly appreciated. If you enjoyed this content, feel free to like, subscribe, and share it with others who might benefit from it. Your support helps in spreading awareness and fostering meaningful discussions about cryptocurrency and its implications.
As always, stay safe, stay informed, and have a great day! If you have any questions or further inquiries, feel free to reach out to me through my contact information provided below:
Let’s interact in the comment section. Thank you to all the readers for your precious time.
Do hit the like and subscribe button if you want(You'r always welcome to tip this article).
Btw, if you have any queries regarding anything you can follow me on my different branches :)
Telegram:@jawad7555
Gmail: jawadniazi897@gmail.com
fin..
