Economics Book Review – The Ascent of Money, a Financial History of the World by Niall Ferguson
Cryptocurrency is a digital asset used mainly as a medium of transaction to secure financial transactions, control creation of additional assets and verification of any asset transfers with the help of a strong cryptographic technology. It is also known as a form of digital currency or virtual currency. Unlike central banking systems, it is a decentralized control and financial transaction system that works through a blockchain used mainly for financial transactions.
The first decentralized virtual currency to be developed in 2009 is Bitcoin known as a virtual monetary unit and it works independently without the assistance of any central bank or administrator. Since then, around 4000 altcoins of diverse variants of bitcoin have been developed. Bitcoin is considered as a peer-to-peer electronic cash system where users perform transactions directly without any intermediates.
Blockchain is a data file consisting of numerous blocks that keeps records of all the previous bitcoin transactions and also creation of new ones. The normal average time between each block is around 10 minutes. The most frequent use of bitcoin, is supported by an external software named Bitcoin wallet. By using this software, one can easily store, receive and manage the transaction of bitcoin units. In order to perform transactions using bitcoin, one needs to have an account in any one of the bitcoin exchanges across the globe and has to transfer fiat currency into that account. Thus the account holder can perform future transactions by using these funds. Apart from the bitcoin, some of the other … Read more