Hello Everyone, it’s Shine Gyan welcoming you back again. Today I’ll be sharing my knowledge about cryptocurrency. What I have known and understand about cryptocurrency I’ll be sharing with you guys. Stellar, Dogecoin, Ethereum, have you heard about this? If you don’t, I am sure you had heard about Bitcoin.
What is CryptoCurrency?
First, let’s break down Cryptocurrency into Cryptography and Currency.
When data transfer from person A to Person B, we will listen and understand when we talk between two people, the third person middle of us. On Cryptography, nobody will understand. A secret way of transferring the data between only two-person third person or others can’t understand called cryptography. When an information transfer between only two-person, can’t understand by another person is called cryptography information.
Currency, of course, we can understand. It is a financial thing that helps us take the services.
Cryptocurrency is a Virtual Currency that is a secure way to transfer funds that help us get a physical & digital service. A simple way we can understand cryptocurrency is digital cash. It is available only in the digital world. We can’t touch, feel, but we can see it. It is the computer network currency. We can understand it is the digital form of cash.
Suppose the currency of Nepal is controlled by Nepal Rastra bank but the Digital Cash (Cryptocurrency) nobody control. Cryptocurrency is also known as a future currency or digital asset. Suppose when you go to the market and purchase something, you don’t have cash at that time. Obviously, you’ll swipe your card to purchase goods. This is front-end, but when you swipe your card, your bank will verify first, is that your card or not, and do your bank account have enough money to purchase the good or not. After verifying, your money will be deducted from the bank after the intermediate person takes the fee or charge and transfers it to the destination account and can purchase the goods. Well, someone in the middle will take out money and transfer it to the destination account. But in cryptocurrency, nobody will verify just when you transfer to the destination account. Your money will directly transfer to the destination account. In normal, when we transfer the money from Nepal to America, after the long process, the task will be complete. First, you need to deposit money to your bank, and the bank will verify and communicate to the American bank. The bank will verify whether the destination account valid or not. After verifying, the money will be transferred successfully. During this process, national banks and international banks are involved in your transaction and take a long period of time, and not easy too. All these processes are break by cryptocurrency. Suppose when we transfer the money from Nepal to America. No intermediate person was involved in this transaction. The money you have sent to America will be directly deposited on the destination account. It takes a maximum of 10 minutes. So, this is a unique transaction. May this type of transaction will reliable in the future time! It is also known as a secure and simple way of transaction. Well, when you go to the official site of Nepal Rastra Bank, they notified that “Cryptocurrency is banned in Nepal.” You cannot transact in Nepal. In Nepal, the value of cryptocurrency is Zero.
What is Bitcoin?
Bitcoin is a Cryptocurrency that has a huge amount of market cap/market capitalization worldwide. It is a popular cryptocurrency. Bitcoin takes the highest percentage of the Cryptocurrency market. It is established in 2008 A.D by Satoshi Nakamoto, who remains anonymous till now. Bitcoin is circulated since 2009 A.D. 21 million bitcoin is available worldwide, but only 18.5 million bitcoin is circulated till now. The remaining are yet to be circulated. On the date of this article published 5th July 2021, the price value of 1 bitcoin is 34,360.60 US Dollars which is 40,96,783.41 in Nepalese Rupees. Nearly 2041 A.D all these 21 million bitcoin will mine. Then extra bitcoin won’t be created. The supply will be limited to 21 million only. The price value of bitcoin is not come to a high at once. After price fluctuation, the price of bitcoin is high till now. Bitcoin is also like the stock price of the share market. You can check out the price history of bitcoin in February 2020 was 10,000 us Dollars, but in April 2021, the price value of bitcoin was around 63,000 US dollars, where the price of bitcoin in March 2020 was 4000 US Dollars.
What is Blockchain?
A technology that runs Bitcoin and other cryptocurrencies. Blockchain is one of the most secure technology. Let us consider a box with the different blocks. A box that stores different types of information. Suppose A transfers data to B or B Transfers data to C simultaneously. When a box full of data’s. The next Box appears, and on that box, data will be store simultaneously. This new box points out the first transaction to the last transaction of the full first box. When the second box full of data’s third box is created, the third box the last transaction points out to the second box. In this way, a different-different chain formed, which Is very secure. I’ll explain why it is secure when you delete the data of the last box. You’ll find the different chains from the previous chain, and you’ll be notified. So it is pretty much secured and safe.
What is Miners and who are they?
Miners are people who help execute bitcoin transactions by solving complicated, complex mathematical equations. It can be solved with a high efficient computer. Currently, miners are taking the Datacenter or Mining center, which helps to solve the complex mathematical equation for every transaction. Let’s go through the explanation. Suppose A sending the fund to B, but without solving the complex mathematical equation, the fund can’t be transferred, so miners are there to solve the mathematical equations. Miners are not a single person. There are groups of people who try to solve the equation. They have the public key to access the data. Those who solve complex mathematical equations are known as miners. As a result of solving the equation, he’ll get a certain amount of bitcoin as a reward. A miner gets 6.25 bitcoin per transaction as a reward. Every 4 years, the reward will be deducted by 50%. So nearly 2040, the mining will be stopped completely. At that time, 21 million bitcoin will be mine completely. Then that bitcoin will be traded on CryptoMarket without mining.
Advanatges of cryptocurrency
- There will not be any geographical barrier. Currently we have to complete the paper formality to complete the each transaction. Using cryptocurrency paper formality is not compulsory.
- There will not be intermediary in Between
- There will be less charge while transferring the fund.
- It is very fast.
Disadvanatges of Cryptocurrency
- Transaction once done is irreversible.
Once you transfer the fund, you can not refund that. Sometimes people get confused and transfer to the wrong account. Currently, when you do transactions to the wrong person. You can request the bank to refund those funds.
- It can used for illegal acitivity
Here sender knows who the is receiver, but the receiver won’t know who is sending the fund. Identification is secret.
Can you make a own cryptocurrency?
Yes, you can create, but the price will fluctuate; when other people ask for more of your cryptocurrency, the price will go high; otherwise, it won’t—the most cryptocurrency user in America, China, Romani, Spain.