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  • Writer's pictureRodney Alkins

What is Cryptocurrency the easy way!

There has been so much talk about Cryptocurrency since Granddaddy Bitcoin has stormed to its highest speculative value to date. It is incredible that the value of this very young form of currency is 57,000.00 just for one Bitcoin! Anyway, let us not stray. For those of us who are yet to understand what it is at the very fundamental level, Cryptocurrency is digital money. It is purely digital, there are no physical coins or bills tied to it

Cryptocurrencies are not tied to anything of value in the real world, and this makes the value fluctuate erratically, which you’ve seen only recently with the meteoric rise and fall of bitcoin over the last 9 years. Unlike stocks, bonds, artwork, real estate, or precious metals, cryptocurrencies have no use or value outside of speculative possession.

Gold for instance is a vital component in electronics, and jewelry — and thus has value outside of its limited supply.

Cryptocurrency, on the other hand, only costs money because someone else has it, and wants money (fiat currency) in exchange for it. However, if businesses begin to accept bitcoin as payment globally then there would be a use case, other than speculative possession.

I am not sure if you know about the challenges with currencies, but there are two main considerations:

  • They require a central authority to regulate their value, production, and authenticity.

  • They fall victim to fraudulent creation.

This is where cryptocurrency shines in resolving the two above issues.

Bitcoin — one of the many forms of cryptocurrency — was invented to combat these exact problems.

The blockchain system and high-level encryption address both problems.

Since Bitcoin is automated and highly encrypted, the system doesn’t require a central authority to regulate it (in fact, it can’t be regulated) and transactions cannot be fraudulent.

Cryptocurrency can be sent directly between two people (peer to peer) without the need for a broker. These transfers are done with very low processing fees that go to compensate the network, making it possible for users to bypass hefty transaction fees by more traditional payment transfer services. That means no need for a PayPal, or bank transfers.

When most people think of a cryptocurrency, chances are that they’re thinking of Bitcoin (BTC). Bitcoin is considered the cryptocurrency Grandfather — the coin that launched thousands of coins.

As seen on popular cryptocurrency price tracker, there are over 2,500 cryptocurrencies, many of which use their own custom blockchain designed to their specifications

Here are the most popular cryptocurrencies to date:

Finally, you can buy cryptocurrency from any reputable cryptocurrency exchange service with your Visa/Master Credit and Debit card . One of the most popular exchanges which is considered very safe is Binance.

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