Crypto means ‘a person who adheres or belongs secretly to a party, sect or another group’; currency means something (such as coins, treasury notes, and banknotes) in circulation as a medium of exchange. The word cryptocurrency created by combining these two words, means encrypted currency. Cryptocurrency used via the internet is a virtual currency that is not bound to a central authority. Individuals or institutions can spend or earn money just as they do with real currency. Cryptography is the deciphering of messages in secret code or cipher; also: the computerized encoding and decoding of information. Reaching and capturing the stored data created by cryptography is quite difficult.
There are a few kinds of cryptocurrencies today: The most known is Bitcoin.
Litecoin, Namecoin, PPCoin, Ethereum, Dogecoin, Devcoin, Primecoin are also other cryptocurrencies that make a transaction on the internet.
Their secrecy stems from the transactions that they make on the internet. In other words, they are not circulated on the market physically, like Dollar or Euro. Their value arises from that people acknowledge the cryptocurrency as a barter item. Their value is determined according to supply and demand conditions.
Founded by Satoshi Nakamoto who is still not known whether he is a real person or not,
Bitcoin was the first of cryptocurrencies and was founded limited to 21 million units. Around 16 million units, Bitcoin was circulated on the internet until today. As of today, 1 Bitcoin is equal to $3921. Bitcoin can be divided up into 8 steps. Its one millionth (0,00000001) is called Satoshi. Calculated how many Bitcoin is circulated, we see that there are more than 62 billion dollars. For making a comparison, I should indicate that there are 1,5 trillion dollars circulated in the market.
Individuals can store their money via the virtual wallet that they create on the internet and make transactions via these wallets.
The most important thing that distinguishes cryptocurrencies from real money is that individuals don’t need to share their identities to make a transaction.
The most superiority of cryptocurrencies from others is that they are not bound to any central bank of a state; therefore, they are not influenced by the economic situations of states. Besides, because the accounts created by cryptocurrency are not known by whom they are created, and they can’t be controlled any authority, the systems are being open to every kind of illegal financial activity.
Suppose you will buy something on the internet, and you need a cryptocurrency account to purchase. First, You need to create a virtual wallet. Encoding the wallet is very important because, in case of no encryption, the wallet will be open to theft. After this stage, it is possible to make a transaction via cryptocurrency. You need to buy this virtual money from a website that sells and put it to your virtual wallet. Then, you are making your payment. When you make that kind of payment, whom, when, how much money you paid can’t be followed. In the same way, when another individual makes a transaction to you, it can’t be controlled.
On the ground that it causes to illegal money transfer, cryptocurrencies are not welcomed by governments. But, the usage of cryptocurrencies is increasingly growing.
There are a few kinds of cryptocurrencies today: The most known is Bitcoin.
Litecoin, Namecoin, PPCoin, Ethereum, Dogecoin, Devcoin, Primecoin are also other cryptocurrencies that make a transaction on the internet.
Their secrecy stems from the transactions that they make on the internet. In other words, they are not circulated on the market physically, like Dollar or Euro. Their value arises from that people acknowledge the cryptocurrency as a barter item. Their value is determined according to supply and demand conditions.
Founded by Satoshi Nakamoto who is still not known whether he is a real person or not,
Bitcoin was the first of cryptocurrencies and was founded limited to 21 million units. Around 16 million units, Bitcoin was circulated on the internet until today. As of today, 1 Bitcoin is equal to $3921. Bitcoin can be divided up into 8 steps. Its one millionth (0,00000001) is called Satoshi. Calculated how many Bitcoin is circulated, we see that there are more than 62 billion dollars. For making a comparison, I should indicate that there are 1,5 trillion dollars circulated in the market.
Individuals can store their money via the virtual wallet that they create on the internet and make transactions via these wallets.
The most important thing that distinguishes cryptocurrencies from real money is that individuals don’t need to share their identities to make a transaction.
The most superiority of cryptocurrencies from others is that they are not bound to any central bank of a state; therefore, they are not influenced by the economic situations of states. Besides, because the accounts created by cryptocurrency are not known by whom they are created, and they can’t be controlled any authority, the systems are being open to every kind of illegal financial activity.
Suppose you will buy something on the internet, and you need a cryptocurrency account to purchase. First, You need to create a virtual wallet. Encoding the wallet is very important because, in case of no encryption, the wallet will be open to theft. After this stage, it is possible to make a transaction via cryptocurrency. You need to buy this virtual money from a website that sells and put it to your virtual wallet. Then, you are making your payment. When you make that kind of payment, whom, when, how much money you paid can’t be followed. In the same way, when another individual makes a transaction to you, it can’t be controlled.
On the ground that it causes to illegal money transfer, cryptocurrencies are not welcomed by governments. But, the usage of cryptocurrencies is increasingly growing.
