What are Cryptocurrencies:
In basic terms, a cryptocurrency is a medium for exchange online. A cryptocurrency has a number of cryptographical functions that are there to support financial transactions. Most cryptocurrencies use the blockchain technology platform (more on this a little later) as it offers immutability, transparency, and decentralization.
Cryptocurrencies are not controlled by any central powers – not yet at least. This is deliberate because the whole idea of cryptocurrency and Bitcoin is that they provide immunity from government interference and control.
A cryptocurrency can be transferred from one person to another by using public and private keys.
There are minimal processing fees involved with cryptocurrency transactions which are part of their appeal. Usually, financial institutions have high charges for any monetary transaction.
Bitcoin is a cryptocurrency and a virtual type of money. It’s really like having an online version of money or cash. You can use Bitcoin to purchase products and services and more and more vendors are accepting Bitcoin as a form of payment these days.
Some countries feel very threatened by Bitcoin and have banned it completely.
There are no physical Bitcoin tokens. You may have seen pictures of Bitcoins but these are fabrications.
The worth of a Bitcoin resides in the private codes they have imprinted inside them.
Every Bitcoin is just a computer file stored in what’s called a digital wallet. To learn more about digital wallets, refer to this guide.
If you have a digital wallet then other people can send you Bitcoins or fractions of them. You can also send Bitcoins or fractions to others using your digital wallet. Every Bitcoin transaction is recorded publically using blockchain technology. This is a transparent
network where anyone can trace the history of Bitcoin transactions. All records in the blockchain are immutable meaning that you cannot copy transactions, change the number of Bitcoins owned, or use Bitcoins that you don’t own.
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