There are so many different countries in the world. Many different cultures, People, Languages, Foods and Powers. But one thing that connects everyone with each other is “Money”.
It needs money for all requirements to be purchased like House, Food, Weapon, Water etc. All need money to be purchased. Many people spend their entire life to earn that one thing- Money. But have you ever imagined the piece of paper or the currency which we are calling money, What is that Money?
This is what exactly Currency Means-
Originally the piece of paper currency, which is in your pocket is a type of condition. A condition to get back the amount written over it. When you give it to any shop, the condition paper reaches to the shopkeeper and he/she gives you the good or the thing you want to take from him/her.
That means the amount of the paper is only that condition that Reserve Bank made to you. When you deposit the paper currency in any bank, the bank gives a big part of it as a loan to other people.
You are able to see the deposited amount of money in your account. But originally it is not there. People take the amount from the bank and buy goods. In this process of a cycle, the bank gets back the amount again and they also get their profit as interest from the loan payer.
But the sucking truth is if only 3% of people ask the bank to give back their money back as cash then the whole banks of the world will become empty.
Because the whole currency became a part of a big economic system.
The control of the economy depends on the hand of the Banks and The Govt. of the Country. If bungle happens on the level of govt. and bank, your money is at risk. You may lose your whole amount. There comes the role of BITCOIN.
BITCOIN- “A try to avoid Bank and Govt. Rules”
What is Bitcoin? It is the most successful digital currency on the planet presently. It is a form of crypto-currency designed for the purpose of exchanging digital information through a process made possible by certain principles of cryptography in which encryption techniques are used to control the creation of new bitcoins and to verify transactions.
Bitcoin was the first cryptocurrency, and since then many new cryptocurrencies have been launched successfully.
In order to own cryptocurrency all, you need a software called Wallet. You can download it from anywhere on the internet and use it. Because most crypto-currencies are open source(Their source code is openly published). If you are a programmer you can create your own wallet.
As you download and install the software it will automatically find peers and join the network.
No need to register it anywhere to use Bitcoin or other cryptocurrencies because there is no central authority required here. So you don’t need to apply to become a member of the network.
After the creation of wallet, you need to create a cryptographic key pair - a public key and a private key.
Public Key:-
It is like your bank account number. To this address, people can send money.
Private Key:-
It is the password for the owner of the address(Stored in wallet.dat). You can also encrypt your wallet file with a password for further protection.
Flexibility
Most cryptocurrency coins can be broken into very small units as they are.
Ex- Bitcoin can be divided into as small as hundred millionth single coin pieces called “Satoshi”(Named as per Bitcoin’s creator Satoshi Nakamoto).
Security
Usually the tracking system of regular currencies made by the banks and other middle man. Now the question is- a digital currency can be hacked or the it can be interrupted by any piracy. The answer is- It is not possible. The significant of Satoshi Nakamoto is, the bitcoin is distributed on the every person with a block chain.
The block chain keeps the record of the whole transaction process in details. Each transaction is verified and the network keeps the record of it. So there is no fear of piracy.
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Money creation is out of control among many of the world's central banks so high inflation is coming to those countries. Cryptocurrencies like Bitcoin have a very limited supply. Putting most of your savings in physical gold and silver or cryptocurrencies will keep it safer than in paper currency.
Gold, silver, and copper have used as money for thousands of years throughout the ancient world. It's hard to consider a cryptocurrency to be money when they're so new and they're not physical.
Really appreciate you @barncat. It's the real time for all to get inside the crypto market.