A cryptocurrency is just like a digital form of cash. A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers.
A defining feature of cryptocurrencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation. You can use it to pay friends for your share of the bar tab, buy that new pair of socks you've been eyeing up , or book flights and hotels for your next holiday. Because cryptocurrency is digital, it can also be sent to friends and family anywhere in the world.
Is it Like Paypal Or Anything like that?
Well, not really. It's way more interesting! You see, traditional online payment gateways are owned by organizations. They hold your money for you, and you need to ask them to transfer it on your behalf when you want to spend it.
In cryptocurrencies, there isn't an organization. You, your friends, and thousands of others can act as your own banks by running free software. Your computer connects with other people's computers, meaning you communicate directly – no middlemen required!
To use cryptocurrency, you don't need to sign up for a website with an email address and password. You can download a wide variety of apps onto your smartphone to begin sending and receiving within minutes.
KEY TAKEAWAYS
A cryptocurrency is a form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities.
Experts believe that blockchain and related technology will disrupt many industries, including finance and law.
The advantages of cryptocurrencies include cheaper and faster money transfers and decentralized systems that do not collapse at a single point of failure.
The disadvantages of cryptocurrencies include their price volatility, high energy consumption for mining activities, and use in criminal activities.
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