Understanding the Cryptocurrency

You might have heard the word Cryptocurrency. It might have rung numerous questions in your mind. What is Crypto Currency? How does it Work? What do we do with it? What is the purpose of it? You are not the only one to do so.
Crypto Currency is not a recent thing, it has been active for more than a decade. It is only now that they are taking the mass attention by storm. Bitcoin, Ethereum are all crypto currencies, and not the only ones out there. There are many more, but the aforementioned the most popular.

What is Cryptocurrency?

Here we will be discussing what is the Cryptocurrency? The blog post is dedicated in bringing you the knowledge and acquaintance to cryptocurrency. Between January 2015 and April 2016 the value of one coin cryptocurrency has risen over eleven times more. Now this raises yet another question ie. How did one coin cryptocurrency achieve such a high value. One coin of one cryptocurrency is different to the other cryptocurrencies. One coin cryptocurrency is based on the cryptography (and also guarantees the security of it). Making it difficult to counterfeiting.
One coin is created through a process called Mining. Mining ensures that each and every mined coin is unique. Which is very likely to how every other dollar bill having its unique serial number, called the digital money or electronic cash.
Looking at the wider view, cryptocurrency can be used instead of paper money in the days to come.
One positive of Cryptocurrency is that it makes is much easier and reliable way to transfer the funds worldwide.

Basics to know:

In order to have basic understanding of the cryptocurrency there are a few basics you should acquaint yourself with. They are enlisted below:
  • Transactions
  • Public Ledgers
  • Mining


Transaction can be understood as the transfer of amount of money (funds) from a digital wallet to another. Once transaction is completed, it is submitted to the public ledger. Encrypted electronic signature is used by wallets in order to suffice the owners with a mathematical proof of transaction success. 

Public Ledgers:

Whenever a transaction is confirmed, it is submitted in the public ledgers, where it waits confirmation. Cryptocurrency owner’s identity is encrypted as the system works on a cryptographic technique in order to ascertain the legitimacy of the records. 


What is Mining? We have discussed this above. To make it easier for the human mind, mining is the confirmation of transactions. Well mining is done by solving a complex computational problem. Once the transactions are done, they are added into the public ledger. And for that you are required solving the problem we discussed. It is open source, making anybody able enough to confirm transaction. 

Benefits of Cryptocurrency:

Well to consider the hazards and mishaps, economically we are not so secure. Cryptocurrency provides us the desired safety we are looking for. Provides more than that if delve further into it. We are considering the benefits we will be provided with the advent of cryptocurrency as the digital currency. 
  • Counterfeited: As we have already discussed, cryptocurrencies cannot be ounterfeited, and exist digitally. so there are no chances of economic fraud.
  • Encrypted Identity: Comparing cryptocurrency to the credit cards, credit cards work on the principle of ‘pull’ (store initiate payment, pulling amount from accounts). Whereas, cryptocurrency works on the principle of “push” (empowering the holder of cryptocurrency to send whatever they want, with no excessive information). 
  • Open Source:  Cryptocurrencies are for everyone, anybody can hold onto them, with having a digital wallet. Over 2 billion people have reliable access to the Internet, not owning access to exchange systems. M-PESA system in Kenya announced a bitcoin device, courtesy that 1 in 3 kenyans own themselves their very own bitcoin wallets.
  • You Own Your Account: Consider the case of PayPal, if they found any mishaps linked with your account, or your account fishy, they have the power of freezing your assets on the spot. Cryptocurrency on other hands, you are the owner of your account, your key, your transfers. No one can take that away from you. Which is a massive positive about the cryptocurrency. 


Though Cryptocurrency has its own flaws, but this is something that predicts the economic trades of future. Cryptocurrency is not different from money transfer, but its direct funds transfer from your wallet to the receivers. Which is making it much quicker, reliable since it is encrypted. You don’t carry yet you have your currency in your digital wallets.

All you need to know about Bitcoins

Today we have a glance at the most buzzing and interesting topic of this era “bitcoins”. Without further ado, let’s get to know what are they, how to get them, are they legal, how are they formed, and many questions you have in your mind.

A cryptography is a process to secure data from the outside world or known as the third party. When a transaction is made it is to be made sure that none other than the two parties transacting are involved.

A cryptocurrency is a digital currency developed using cryptography.
Cryptocurrencies are the form of money but in an online world which is not governed or controlled by the governments, this is the main reason which made them so popular over the time.
Many types of cryptocurrencies were later developed over the period and are constantly in a surge of generation. Some cryptocurrencies developed later were Peercoin, Litecoin, Feathercoin but Bitcoin was the first of them all.

A bitcoin is a type of cryptocurrency which was developed in the year 2009 by a person named Satoshi Nakamoto whose identity is hidden.
A total of 21 million bitcoins can ever be mined out of which 11 million bitcoins are already mined and in circulation across the network. And Yes, they are legal.

How are they produced & stored:
Bitcoins are mined by solving mathematical problems performed by very powerful computers. When a user solves the problem that miner is awarded 12.5 bitcoins as of June 2016 every 10 minutes. Anyone can mine bitcoins they will be needing a desktop computer which will perform basic mathematical calculations resulting in the generation of some bitcoins.This process is not an easy task as a personal computer may take 2 to 3 days non-stop to mine some bitcoins and generating 20 to 30 cents of revenue. This processing speed’s up when done in a group of computers or miners.

When mined or transacted bitcoins are stored in a person’s personal hardware storage or stored online. Hardware bitcoin theft is difficult and recommended as compared to cloud storage. Once the hardware which stores the bitcoins is lost or dumped these bitcoins can never be recovered.
A study showed almost 4 million bitcoins or an amount of $30 billion are lost due to mishandling, lack of tracking or hardware reasons.

The bitcoin is recorded in a public domain the name of the bitcoin holder has never revealed just the wallet’s id which holds the bitcoin or the transaction made by the wallet.
The transactions made are decentralized and part of every data is scattered all over the network, which merges at the time of location so they are quite difficult to be tracked and to find.

So, although people cannot easily see your personal identity, they can see the history of your bitcoin wallet. A good thing, as a public history adds transparency and security, helps deter people from using bitcoins for dubious or illegal purposes.

How are they tracked:
The tracking of bitcoins includes the blockchain technology.
This technology in bitcoins acts as a ledger which keeps the record of the bitcoins as they move from one wallet to another. All bitcoin transactions are logged and made available in a public ledger, helping ensure their authenticity and preventing fraud other miners can This process helps to prevent transactions from being duplicated and people from copying bitcoins.

Usage of bitcoins:
The usage of bitcoins is getting increased day by day. The number of companies accepting bitcoin payments is growing rapidly. Retailers all over the world especially in countries like, Japan now accept bitcoin payments due to a new law passed previous year, and small businesses can accept bitcoin payments through simple plugins that add to WordPress websites.

Future of bitcoins:
All the ups it had during the previous year where its value jumped higher than ever, people were concerned about the future. At the start of the year 2017, one bitcoin was worth around $900 which seemed quite fine as everyone was within reach of it in terms of buying and considered it to be a quality investment but as the year passed down its value increased tremendously, every day its stakes were getting higher making it difficult to lay hands on, until the end of the year the value of one bitcoin was around $15000.

The new year brought new questions about the future of bitcoins.
What’s the future of bitcoins? Where do they stand in future? Should the investment be made? Will the prices rise?
Countries are concerned about the taxation. With Australia, China, and Japan now regulating this currency.
Having said that, No one knows for sure (with any degree of certainty) where will it stand but most agree that the future is bright.