A cryptocurrency refers to a virtual or digital currency, which is designed to work as a medium of exchange. If you are a new person to cryptocurrency, then this BTC guide on Crypto Head will be essential for you to understand the cryptocurrency. Cryptocurrency works with cryptography to verify, secure transactions, and control creation of any new unit of a specific cryptocurrency.
Typically, cryptocurrency is a limited entry in a database, which nobody can change, unless some specific condition and terms are fulfilled. This may look ordinary, but this is the exact way of defining currency.
History of Cryptocurrency, there have been several attempts at creating digital currency I the 90s, using systems such as Beenz, Flooz, and Digicash in the market but without success.
However, this was accompanied by different reasons that resulted in their failure. They included financial problems, fraud, misunderstandings among the companies’ bosses and employees.
Typically, these systems utilized the third party approach. This meant that the companies or institutions behind them facilitated and verified all the transactions. Since these companies failed severally, digital system of cash was looking like a lost achievement. In the early 2009 anonymous programmers in the company of alias Satoshi Nakamoto, introduced Bitcoin.
Nakamoto referred to it as the peer-to-peer electronic system of cash.
Nevertheless, the fundamental problem, which a payment network should solve, is the double spending. This is a fraudulent mechanism, whereby you spend the same cash twice. The traditional way of solving was through a trusted third party. This was the central server, which kept records of transactions and balances.
What can you do with Cryptocurrency? It was quite difficult to get a merchant who will accept the cryptocurrency. However, these days things have changed completely. You will find many merchants both offline and online, who can accept Bitcoin as a way of making payments. They’re many retailers online like Newegg and Overstock. You will also find local bars, restaurant, and shops.
Additionally, you can use Bitcoin to make payments for:
- Flights
- Hotels
- Apps
- Jewelry
- College degree
Legality of cryptocurrency
Cryptocurrency has developed to be more popular. Therefore, many tax authorities and law enforcement departments worldwide are trying to come to terms with the idea of crypto coins. They also try to look where their role is required within the legal frameworks. When Bitcoin was introduced as the first cryptocurrency, a new paradigm emerged.
In November 2017, digital currencies and Bitcoin were outlawed in:
- Bangladesh
- Bolivia
- Ecuador
- Kyrgyzstan
- Vietnam
Nevertheless, Russia and China might ban the use of cryptocurrency. Other countries across the world do not use the cryptocurrency.
However, the laws of the countries determine this. Most common cryptocurrency:
- Bitcoin
- Ethereum
- Ripple
- Bitcoin cash
- Nem
- Litecoin
- Neo
- Qtum
- Monero
Unlike the traditional currencies, the cryptocurrency is digital. This is a completely different way when it comes to storage. There are many types of cryptocurrencies wallet, which provide different needs. If you have a private priority, you can opt for a hardware wallet or paper. Those are among the safest ways of storing the crypto funds. If you have never used the cryptocurrencies before, it is very important to consult.
