Cryptocurrency: The basic guide to explore this digital money
Are you looking for answers or explanations or guide about cryptocurrency, then you have landed at the right place, where we are going to talk all about currency, currency and currency. But, wait not that hard core currency that you use in your day to day life, but something else which you cannot feel by your hand or see the hard copy of it, but can only transact it in the virtual world. Yes! It is what we are talking about. The currency that runs through the virtual world – cryptocurrency. More specifically we can say that a future currency or the money for the new generation.
If you are new to this word – cryptocurrency, then let me help you to know more about this money, its face value and existence of the virtual currency.
Just a few years back, nobody had a faintest idea about the repercussions of rapidly evolving virtual world; there would be any transformation or evolvement of currencies. However, today crypto currencies have taken most people around the world into its stride.
Cryptocurrencies has evolved as the byproduct of the digital cash. The first and the most important of it – Bitcoin was invented unintentionally. And today, it is emerging as the strong currency, invariably confusing and misleading the viewpoints of bankers, scientists, developers and consultants. And, they are unable to understand the primary things of cryptocurrencies.
Take the money on your bank account: it is all the physical coins and notes that you possess. More clearly, money is verified entry in the known database of accounts, balances, and transactions. But, the same is totally different for this digital money.
Some basic features of Cryptocurrencies
Has No Face Value
It has no intrinsic value as compared to real world currencies. Neither there is any physical value to count. So, it can’t be converted to another currency.
Cryptocurrency is non-redeemable currency. The negative point is that this virtual currency cannot be redeemed for any other commodity. For e.g. you cannot convert it for gold.
Has No Physical Form
It just exists in virtual world or between the network of peers. There is no physical existence of cryptocurrency where you can touch, feel or see it. Or neither can you have it in your pocket to buy something. Cryptocurrencies only exist in network; i.e digital world.
The central bank has no authorization and does not supply any such digital currency. This network of cryptocurrencies is completely decentralized.
In short, we can say cryptocurrency is a digital asset that runs through the network without any existence in the real world. It is designed and invented to work as a medium of exchange that requires cryptography to secure its transactions, to control and prevent the creation of additional units, and to verify the transfer of assets.