Cryptocurrency
Cryptocurrency is a type of digital or virtual currency used for online transactions. Banks are not required to verify transactions. Just as banks are regulated by the RBI, the stock market by the Securities and Exchange Board of India (SEBI), and real estate by RERA, cryptocurrency is not controlled by any central authority and is based on a decentralized system. Let’s learn about cryptocurrency and some important cryptocurrencies.
What is cryptocurrency?
Cryptocurrency is a completely digital currency that is stored in a digital wallet. It is a digital payment system that does not rely on banks to verify transactions, but rather relies on a peer-to-peer system, allowing anyone to conduct digital transactions from anywhere. Digital transactions do not require bank permission; they can be conducted digitally online, without any control from the bank or any third party.
Cryptocurrency details are recorded in a public ledger called a blockchain. Data stored in the blockchain is completely secure, cannot be altered, and is completely secure. Encryption is used for security, with cryptographic techniques used to verify transactions, and all transactions are stored in a digital wallet. Cryptocurrency is used to purchase goods and services. Furthermore, it is increasingly used to expand businesses and invest.
Important cryptocurrencies:
1. Bitcoin
Bitcoin is the earliest cryptocurrency to come into existence. It was founded in 2009, and its creator was Satoshi Nakamoto. It uses cryptography to secure transactions. Currently, the value of 1 Bitcoin is approximately US$111,515.21, which is equivalent to approximately ₹1.09 crore in Indian rupees. Cryptocurrency prices are volatile and fluctuate over time. However, Bitcoin has seen a steady increase in price since its inception, making it a safe investment option.
2. Ethereum
Ethereum is also a significant cryptocurrency that operates on blockchain technology. Its native cryptocurrency is Ether (ETH), which powers the network. NFTs are processed using blockchain, are continuously graded, and have generated astonishing returns over the past five years. It is the second most widely used cryptocurrency after Bitcoin.
3. Binance Coin
The third most widely used cryptocurrency is Binance Coin, which is also used for travel booking, trading, and payment processing.
