WHAT IS CRYPTO CURRENCY?

Introduction Cryptocurrency has become a worldwide phenomenon that almost every country and banks across the globe are now making research on. Nonetheless, this word cryptocurrency still looks strange to many people around the world. According to research, over 50% of the world’s population is on the internet but less than 5% actually know what a cryptocurrency is all about. Cryptocurrency according to some famous leaders like Bill Gates and Richard Branson, refer to it as the money for the future. A financial revolution that will change the world we know. After reading through this article, you will be abreast on the basics of cryptocurrency. What is Cryptocurrency? Cryptocurrency is digital money used to pay for goods and services. Like the classic money, USD or Ghana cedis, it can be used to pay for goods and services while shopping online or paying using your smartphone. So basically, cryptocurrency is money that is keep in virtual form but function the same as the fiat money. Though, a cryptocurrency is unlike the Fiat currency (paper money) that can be held on the hand or keep in the pocket, cryptocurrency is in digital or virtual form that is stored in digital wallets. Comparable, using the MTN Mobile Money where you have your paper money been converted to a digital form and stored in your online wallet, but you can spend it on goods or services. However, cryptocurrency is decentralized money that is not controlled by a single authority like the MTN mobile money or the fiat money does. The word cryptocurrency is derived from two key English words; Encryption and Currency. Encryption is the activity of converting data or information into codes; whiles Currency is a system of money or other items used as a medium of exchange for goods and services, especially the money used in a particular country, area, or domain of usage. Therefore, a cryptocurrency is the type of digital currency that uses cryptography for security by enabling the use of public and private keys to transfer money from a sender to a receiver through the Blockchain technology. Today, there are many exchange platforms eg. Coinexchange, HITBTC, C-CEX etc that trade cryptocurrencies, as well as companies and merchants such as Microsoft, eBay, Ebitcoinics, Payplux, coinbase etc that accept cryptocurrencies as payment method or where you can exchange fiat currency like USD for cryptocurrency. Examples of cryptocurrencies are Bitcoin, Dash, TheGCCcoin, Smartcash etc. The first cryptocurrency that was invented in early 2009 is the BITCOIN, this is often called the mother cryptocurrency with highest market capacity. Today there are more than 1000 cryptocurrencies on the market which are called Alternative coins (altcoins). Example of altcoins are Dash, Smartcash, TheGCCcoin, Litecoin, Ethereum etc. This is basically what a cryptocurrency is about. Click on How cryptocurrency originated: a Brief history, to read more about the history of cryptocurrencies.