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What is cryptocurrency

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In fact, cryptocurrency is nothing more than digital money with hokkaido inu. Just like euros and dollars, you also have digital currencies such as bitcoin and lite coins. Where euros and dollars are actually tangible, cryptocurrency is not. Basically, it consists of digital bits of code that are well encrypted. The best way to explain it is as follows

When you look at a 50 euro bill, you will see a serial number. This serial number contains a lot of information, for example, the origin of the note, the printer, the plates with which the note was made, etc. When you remove the physical note and only store the code somewhere, you basically have the idea of ​​​​cryptocurrency. That code is still worth €50, but you no longer have it physically in your hands. The piece of code, therefore, contains a certain value. It works the same way with cryptocurrencies.

 

Why was cryptocurrency created?

After the credit crisis of 2008, in which banks and financial institutions were heavily indebted, confidence in banks has declined sharply. Many people have little or no knowledge of financial matters such as mortgages and loans, so it is assumed that banks and financial institutions provide reliable and honest advice. This turned out not to be the case. Therefore, it was felt that there should be a way to transparently complete payments without the intervention of banks. The cryptocurrency was set up for this reason.

When was cryptocurrency set up?

In 2008, a programmer (Satoshi Nakamoto – pseudonym) came up with a paper explaining the whole principle of blockchain. He called it “Bitcoin: a peer-to-peer electronic cash system”. The idea was a digital payment method where people could make a payment without the intervention of banks. However, there must be someone who verifies transactions and ensures that money is not spent twice. This is all captured by the fact that each “participant” automatically checks each other through a so-called proof of work system.

The entire technical story can be found here

On January 3, 2009, the programmer released the network and the first bitcoin.

Bitcoin mining

Bitcoin is therefore the very first crypto coin, set up by the original creator. So you can see it as the primeval coin. But how exactly is a bitcoin made? Basically, mining bitcoins is getting a reward for making your computer available to the network. The blockchain must be constantly monitored to ensure that there are no double-spends and that payments are validated. This requires computing power. To provide this computing power, the blockchain gives each computer that provides a new block a reward in the form of bitcoins.

Governments and banks

Banks and governments are massively throwing the ass against the crib and are already coming up with policies and regulations to kill cryptocurrency. In a way that is a logical fear: they will have much less influence on the global payment system. The centralized nature of the cryptocurrency is one of its advantages

One of the frequently heard reasons is the fear that cryptocurrency will be widely used to finance war due to its anonymous nature. However, war is currently also being financed, and no cryptocurrency is involved.

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