Cryptocurrency And Blockchain Demystified
Cryptocurrency and blockchain overview
The subject issue of cryptocurrency and blockchain remain highly controversial. Cryptocurrencies have come to stay and despite the well fact of cryptocurrencies volatility they are still considered a notable form of investment asset. “Evil” some though may call it, as they are reputable for facilitating criminal activities and serve as safe haven for criminals and money launderers, it has found its way in the hearts of many and it’s global embrace is quite overwhelming.
Bitcoin, ethereum, ripple, and USDT are all types of cryptocurrency and the underlying technology with which cryptocurrencies operate is known as the blockchain. Hence in this article we will attempt to demystify cryptocurrency and blockchain (it’s complex underlying technology) and will also look at issues surrounding cryptocurrencies and blockchain.
What is Cryptocurrency?
Cryptocurrencies are digital currencies, but unlike other forms of digital currency such eNaira cryptocurrencies are decentralized and secured by cryptography, making it nearly impossible to counterfeit. Aside from cryptocurrencies being an investment instrument, they can also serve as exchange for goods and services both online and physical stores, but they do not possess intrinsic value hence they are not redeemable for another commodity, such as gold.
Cryptocurrencies are not issued by any central authority and do have backing from the government, for this reason they are not considered as legal tender, although a few countries are nurturing the idea after the recent adoption of bitcoin as legal tender in El Salvador who became the first country to adopt cryptocurrency as legal tender. However it’s decentralized nature brings a vast array of advantages to cryptocurrencies, such as crypto holders being in total control over their money and not having a single point of failure as they do not have a single point of entry, and much well promoting transparency.