What do you mean by cryptocurrency

A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Bitcoin is a form of cryptocurrency.A million dollar question is on will bitcoin cash crash or does it have long-term potential? An expert says, he would start supporting trade with bitcoin cash despite its long-term potential being limited.

It is a digital currency associated with the internet that uses cryptography, the process of converting legible information into an almost uncrackable code, to track purchases and transfers. The first cryptocurrency was bitcoin, which was created in 2009. Cryptocurrencies use decentralised technology to let users make secure payments and store money without the need to use their name or go through a bank. They run on a distributed public ledger called blockchain, which is a record of all transactions updated and held by currency holders.

There are various types of cryptocurrencies that includes Bitcoin, Ethereum, Ripple and Litecoin, uses in different countries and exchanges handling in a secure and providing a level of anonymity. Transactions in them cannot be faked or reversed and there tend to be low fees, making it more reliable than conventional currency. Their decentralised nature means they are available to everyone, where banks can be exclusive in who they will let open accounts. As a new form of cash, the cryptocurrency markets have been known to take off meaning a small investment can become a large sum over night.

It’s happening just as digital currencies are in the midst of an epic explosion. Bitcoin and its ilk are now worth $107 billion, six times their value at the beginning of the year. It’s either the beginning of a global financial realignment-or a bubble of historic proportions. These days as much as $6.6 billion in digital tokens changes hands every day, and even mainstream players such as Goldman Sachs, Visa, Capital One, Nasdaq, and the New York Stock Exchange have invested in the underlying technology.

Bitcoin pioneer Charlie Shrem saw value back when Bitcoins were worth only a few dollars each-they now trade above $2,658-and there was hardly anything to spend them on. It is also true that Bitcoin has emerged as a favourite tool for hackers. The concept of the attack was simple: Your computer gets infected with a virus that encrypts your files until you pay a ransom.

Cyber-attack is a continuous process by the cyber crooks, A recent cyberattack "WannaCry" - the ransomware, asked users to pay a $300 ransom in bitcoins. The ransom note indicates the payment amount will be doubled after three days. If payment is not made after seven days, the encrypted files will be deleted. Experts warn there is no guarantee that access will be granted after payment. Some ransomware that encrypts files ups the stakes after a few days, demanding more money and threatening to delete files altogether.

Bitcoin is it a soft target? - When you pay something digitally, you use net banking, credit card or debit card. Now your information is attached to the card such as name, address, etc). However, the case is different with bitcoin . The transactions you make using the currency are completely anonymous. whenever customers trade in bitcoin, a private key associated with their wallet is used to generate a bit of code. That code is publicly associated with customer transaction but with no personal identifying information. Earlier, hackers used to ask for money from PayPal but due to stringent KYC (Know Your Customer) norms in PayPal, they have shifted to bitcoins.

Lastly, some experts fears that Bitcoin is a Ponzi scheme, or that it could replace domestic currency and then the government will lose its control over money supply. If grown-up people want to buy and sell things which they want to profit from, it is their business. It is a form of gambling.

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