Cryptocurrency is a private digital currency. What is the future of Miner’s revelations? What is No government control: How does it work? Why does its price go up and down? What is a miner? what is Mining? what is the Peer-To-Peer network? How do trade and invest in it? Everything will be discussed in this content.
Let’s learn about your Cryptocurrency through a small story. Two friends Raj and Viraz. Viraz did work for Raj for Rs.10. Instead of paying 10 rupees, Raj gave Viraz chocolate. Raj and Viraj thought that nowadays are digital, so I will make chocolate digital.
Chocolate will become a digital version. But there is a problem here. Anyone can copy and paste it. Anyone can multiply it and Can sell it by email. Can do one to one hundred. These can be solutions. The Digital Chocolate that Raj gave to Viraz can be noted by the computer. The documents through which these accounts are noted are called Ledger.
Now the Ledger is maintained in one place. The Ledger can make mistakes if it thinks so. One can write a hundred in place. It can do anything. Here is a revolutionary solution. Here comes the turning point. Is the Ledger stored on all computers? Every computer counts as a digital Chocolate.
How many Chocolates does Raj have? How many Chocolates did Raj give to Viraj? How many chocolates does Viraj have now? Now, this calculation is on all computers. If one thinks to make a mistake in one place, all the computers will have a miss match. And he will be caught. Let’s understand all the concepts with the example of Raju, Viraj.
First of all, Cryptocurrency will be discussed. The digital chocolate that was discussed. This digital chocolate. Cryptocurrency in full form. Crypto means secret, Currency means a medium of purchase in goods and services.
You have heard the names of different types of Cryptocurrencies. Likes Bitcoin, Ethereum, Ripple, and Dogecoin. And that there is a Public Ledger. How many people are maintaining this Public Ledger on different computers? This maintenance is called a Peer-To-Peer network.
Peer-To-Peer means a person Person Network. Many people are maintaining this Ledger together. Not one person is doing it. And how is it maintained? There is a revolutionary system behind it. It is called Blockchain. Blockchain is made up of two words Block and Chain. There is a chain of blocks.
Blockchain Technology For Cryptocurrency
For example, there are many coaches on the train. When one coach is full, another coach is added. This is how the Blockchain system works. When the transaction of one block is filled, another block is joined. The transaction that starts in each block joins with the transaction of the previous block.
That means every transaction has a connection between them. Each block is connected to the other in a chain system. It is available with full transparency on not just one computer but on all computers. If someone wants to steal, he gets caught. Let’s say, Raj and Bajaj have Cryptocurrencies. Raj has two bitcoins and Raj gives one bitcoin to Bajaj.
Now start checking all computers. According to old transactions, did Raj actually have Bitcoins? After Raj gives a bitcoin to Bajaj, how many Bitcoins will Raj have and Bajaj will have one Bitcoin added? Transactions are completed accurately within a few seconds.
What Are Miners, Mining & Public Ledger?
This is called Block Chain technology. Those who are taking responsibility for maintaining this Public Ledger are called Miners. This process of maintaining and validating is called Mining. No one has to do this work sitting down. These functions are system generative.
This process requires special Computers and Software. The time and money invested in this process at Mining, Some rewards from that currency are given to Minors. Now the question may be, how much money does everyone have? Everyone will know it.
This is not right. For this reason, the strongest pillar of Cryptocurrency is Cryptography. Cryptography is coded. This is the beginning of Cryptocurrency popularity. Some people’s problem was that the money is ours but why is the authority of different people?
Why in the hands of banks? Why in the hands of agencies? Why in the hands of authorities? When the Government wants to increase inflation, it prints notes, it prints notes, and inflation increases. It was the people’s problem why the rupee value decreased, the dollar value increased.
Why doesn’t the currency become Decentralized? Currency should be for everyone, so control should be in everyone’s hands. Not under anyone’s control. Everyone can control the currency. Why should the bank and trade agency people know how much money I have?
How does the currency rate decide when the right of the currency is in everyone’s hands? It is heard that the rate of Bitcoin has increased and the rate of Bitcoin has decreased. Here we tell you, that each cryptocurrency is defined by the total number of coins produced.
When something is fixed and limited, its value depends on its demand in the market. For example, it can be said that a piece of land is limited, it is fixed. If more than one person wants to buy this land, the demand for this land will increase, and the price will increase.
When the popularity of a piece of land is not high, its demand is not high, then the rate of this land decreases. This is how the value of the currency rises and falls. Bitcoin has a limited supply of 21 million. If its demand increases or decreases, the rate decreases or increases.
In 2010 the rate of Bitcoin was 20 rupees and in the middle came 40 lakh rupees. As of today,(2022) the value of Bitcoin is approximately 30 lakh rupees. If someone bought 100 rupees of Bitcoins in 2010, now they would be worth 1.5 million rupees.
Cryptocurrency rates depend on news, depend on what companies are planning, depending on what investors are planning. For example, a few days ago Tesla owner Elon Musk said Tesla company will accept Bitcoin. Bitcoin demand started to increase and everyone quickly started buying Bitcoins. Then the rate of Bitcoin started to increase.
Finally, Tesla company announced that they are not accepting Bitcoin. Before Elon Musk’s announcement, the rate of Bitcoin, which was 60,000 thousand dollars, came down to 30,000 dollars. It is also called Mask Dip.
Advantages of cryptocurrency
Decentralized: Not controlled by a country or a country’s power. The individual is not controlling it. It is controlled by everyone. As a result of this, people notice huge benefits. The government and the decision of the two countries are not affected by their money for inflation. Their financial capability is not effective.
For example, the price of Rs 100 differed less 10 years ago but the value has differed ten years later. It’s getting expensive. Government can produce notes and the economy can go up and down. Cryptocurrency is limited. Bitcoin amount is 21 million. Do not go to any number before this. It doesn’t happen that someone produced bitcoins and turned the economy upside down.
No government control: Cryptocurrencies are not regulated by governments.
Safety Of Cryptocurrency
It is made up of BlockChain technology so it is reliable. Blockchain technology could come into the future in education, data management, health, and more.
Disadvantages Of Cryptocurrency
No government authority: It does not have the authority of the government. If there is any problem then you cannot complain to anyone. It is not under anyone’s control. It has advantages as well as disadvantages. Because it is a secret currency.
Unethical Uses: As it is a secret currency, people make payments through an Unethical system.
Not Eco-friendly: It is not eco-friendly. Due to the heavy use of mining, a lot of power and a lot of resources are used.
