Let's try to understand what cryptocurrency is when the currency of cryptocurrency is a lot nowadays. We hear the word cryptocurrency from a lot of people. This cryptocurrency is actually a secret medium to buy anything. Cryptocurrency is not a hard currency but a kind of soft currency.
What is this cryptocurrency? How is it used? How is the value of cryptocurrency determined? How is cryptocurrency maintained? What are the benefits of cryptocurrency? What are the disadvantages of cryptocurrency? How safe is cryptocurrency and how is its safety determined? We will discuss all these aspects of cryptocurrency here and try to understand them better.
Cryptocurrency is a type of digital payment currency. To understand cryptocurrency, we need to separate the word crypto and currency. The word crypto in cryptocurrency means secret. The word currency means medium of purchase medium of goods and service purchase.
A cryptocurrency that is currently in circulation or is valid in many countries. Bitcoin, Ripple, Ethereum, dogecoin is a type of cryptocurrency. A lot of people in cryptocurrency manage this currency. Many types of computers include cryptocurrency. A special type of computer is used to hold and account for cryptocurrency. Many people call it PEER TO PEER NETWORK because they have an account of this cryptocurrency and many computers have cryptocurrency.
Many computers manage this ladger of crypto currencies found together.
This is a ladger of not one but many.
How to manage cryptocurrency ladger and cryptocurrency.
Behind the maintenance of cryptocurrency is e-revenue technology. Manages cryptocurrency blockchain. The word block chain is made up of two words. Block and chain. The word blockchain works like a train car. The way one compartment of a train is filled and another compartment is attached behind it.In cryptocurrency the same way another blog is added after filling Exxon Jackson and the front transaction of cryptocurrency is linked with the back transaction.
Thus all cryptocurrency transactions are stored with each other and with a single blog, not in a single computer like in China, but in many computers. Thus all transactions of cryptocurrency are saved with complete transfer. Because the cryptocurrency is connected to the blockchain and all the transactions of the cryptocurrency are interconnected, if a person tries to cheat, he is immediately caught.
Let's try to understand the transaction of cryptocurrency with an example.
Raj and Bajaj are two friends. A man named Raj has two cryptocurrencies which are Bitcoin. Now Raj gives Bajaj and 1 bitcoin out of it. So as soon as a cryptocurrency is transacted, all the computers start working. Does Raj really have two bitcoins? All the old transactions of cryptocurrency will be checked and the transaction will be checked after one minute and 1 bitcoin will be added to what Bajaj has.
This technology is known as the blockchain of cryptocurrency. All these transactions take place in electrical seconds and with accuracy.
Cryptocurrency Those who take responsibility for maintaining public leisure are called miners.
The job of miners is to manage and maintain all cryptocurrency transactions. The process of maintaining and validating cryptocurrency transactions is called mining.
All these processes of crypto currency are auto generated. There are special computers and software for this. This is a time in one for currency mining. I get involved. In return, the miner receives a reward from the same cryptocurrency.
All computers have data on how much cryptocurrency a person has. Now if all this is stored in all computers then where is the privacy of cryptocurrency?
So here is what cryptography means. All these cryptocurrency data are coded. Cryptography means coded. Here is the code for all. Because cryptocurrency is so different, there is a reason for the introduction of cryptocurrency and the growing popularity of cryptocurrency.
The reason for the growing popularity of cryptocurrency ..
Many people think that the money is ours, then why does someone else have control over that money? Why in the hands of the agency? Every time the government prints money, the value of money decreases or increases. The value of the dollar also fluctuates so many wondered why there was no currency that would become decentralized. If no one has control over the currency then everyone has control. What do the people in the bank know how much money I have? Due to this mentality of the people, the popularity of cryptocurrency increased day by day.
How is the price of cryptocurrency determined?
If everyone has control over cryptocurrency then how can someone else's price be decided. How do you know if the price of Bitcoin has gone up or down? Each cryptocurrency determines in advance how much cryptocurrency will be produced. Now when an item is limited and fixed, its price depends on youtube to determine how much demand it has in the market. How popular is that cryptocurrency among the people.
cryptocurrency is popular in a market where the demand for cryptocurrency is high and the currency value is increasing. As the popularity of cryptocurrency increases, as cryptocurrency is used more and more, people start buying cryptocurrency and the price of that cryptocurrency also increases accordingly.
If the market declines in cryptocurrency then the price of cryptocurrency falls. The supply limit of Bitcoin is 21 million. As the demand for Bitcoin increases or decreases, its value increases or decreases. Bitcoin produced 21 million at the time. Now that the production of Bitcoin has been determined, it does not increase or decrease. If we try to understand by an example, the price of Bitcoin in 2010 was 20 rupees.
Due to the increase in demand for Bitcoin, the price of Bitcoin also went up to Rs 40 to 45 lakh. And this bitcoin was worth 30 lakhs.
If anyone had invested 100 rupees in Bitcoin in 2010. So he can get this one and a half crore rupees to date. Thus the value of cryptocurrency depends on what the news is? What is the company planning? What are the investors planning? For example, Alan Musk said on March 21 that Alan Musk's Tesla company would now accept Bitcoin. Tesla now accept Bitcoin as payment for cars. So the price of Bitcoin went up to 60,000 dollar. What is muskdip
It happened to people that the price of Bitcoin will go up a lot now. Then in May Ellen Musk says Tesla will no longer accept Bitcoin over climate concerns. So Bitcoin dropped to thirty thousand dollars. This situation is called muskdip.
Advantage of cryptocurrency.
The cryptocurrency is decentralized. Cryptocurrency is not controlled by any government or company. All this is with everyone and everyone has control over cryptocurrency.
No government control. The biggest benefit to the people in cryptocurrency is that the cryptocurrency is not affected due to any government policy due to dish antenna between two days or any other reason. Bitcoin of cryptocurrency is 21 million, no one can increase it, no one can reduce it, it is limited.
The security of cryptocurrency. Cryptocurrency is very safe. The use of blockchain technology in the management of cryptocurrency is very reliable.
DISADVANTAGE OF CRYPTOCURRENCY
There is no government or authority for currency, no one controls it. So if there is a problem with cryptocurrency, you can't take it to someone. If there is an advantage then there is also a disadvantage.
As cryptocurrency is a secret currency, its biggest disadvantage is that cryptocurrency is used in unethical works.
Is cryptocurrency legal in India?
Yes, invest in cryptocurrency in India. But in India it is not a legal tender of money. So you can't use cryptocurrency for money. Cryptocurrency cannot be used in exchange for transactions. Investing in India. To hold. Trading it is one hundred percent legal in India.
RBI clarifies on 2018 cryptocurrency circular ask Bank to carry out customer due diligence. But in 2020 supreme court allows trading in cryptocurrency.
Many people have also bought cryptocurrency after the ban on cryptocurrency was removed.