what is Cryptocurrency?

Let's get started with the most obvious question, what is Cryptocurrency and why are so many people talking about it?

A Cryptocurrency, (also known as crypto) is a virtual or digital currency which uses cryptography (hence the crypto part) to secure the integrity of the currency. Just like the cash in your wallet, you can use crypto to make purchases or add it to your investment portfolio. The validation of a crypto exchange is secured using what's called Blockchain Technology, a ledger which verifies and enables the transaction to occur. With Blockchain technology, cryptocurrency transfers can be made secure and without the need of an intermediary body, like a bank or government. The more traditional online payment methods are owned by organisations which usually require you to first transfer the money to them, then they transfer the money on your behalf when you make a payment. As we mentioned before, there isn't a middle man in the process. Instead, there's a whole web of computers verifying and processing the transaction.

So what's the difference with normal currency?

Many of you might be wondering, what's wrong with the USD, or the Euro? What can Cryptocurrency do that the cash in my wallet can't do? These are very valid questions and being able to distinguish the difference will help you better appreciate why cryptocurrencies have been gaining such popularity. Cryptocurrencies can be purchased, sold, earnt, won, and exchanged just like you can with fiat currencies (non-digital, government backed currency that you have in your wallet). However, the platform is decentralised and unlike fiat currencies, is not government backed or valued against commodities such as gold. Since it isn't government backed, it means that cryptocurrencies are mostly immune to influences such as inflation or economic turmoil. Furthermore, cryptocurrency is effectively an international currency. Once you have some crypto, you could circumvent the fees and hassle associated with international currency conversion.

Indeed, there are some elements of the crypto world which are still in their infancy, and the regulatory environment still needs to catch up, but the list of institutions and governments accepting crypto is ever growing, meaning a future with crypto in some way, shape, or form, is inevitable. Might as well get some crypto now right?

We can't talk about Cryptocurrency without talking about Bitcoin

When you hear about cryptocurrency, the first thing that will probably come to your mind is Bitcoin. Bitcoin has been a trailblazer in the crypto world. Turning crypto from a mere concept, into a mainstream investment option. Since being launched back in 2009, Bitcoin proved the viability and credibility a digital currency can be. Paired with Blockchain technology, Bitcoin demonstrated that a digital currency is not only viable, but revolutionary in the world of finance.

So, Who Started Bitcoin?

Bitcoin was introduced in 2008 by an individual or group using the name Satoshi Nakamoto.

Satoshi published the Bitcoin white paper, which explained the idea of a peer-to-peer electronic cash system. In simple terms, Bitcoin was designed to let people send and receive digital money directly, without needing a bank, government, or payment company to process the transaction.

The Bitcoin network officially launched in 2009. Since then, Bitcoin has become the most recognized cryptocurrency in the world and has helped shape the wider crypto industry.

Although Satoshi Nakamoto's real identity remains unknown, the idea behind Bitcoin continues to influence how people think about money, technology, and financial freedom.

What Is Blockchain Technology?

Blockchain is the technology that powers Bitcoin and many other cryptocurrencies.

It works like a digital ledger that records transactions across a network of computers. Instead of one central authority keeping the records, the information is shared and verified by many participants in the network.

Transactions are grouped into blocks. Each block is connected to the block before it, creating a chain of records. Once information is added to blockchain, it is very difficult to change or remove, which helps make the system more secure and transparent.

Blockchain also helps prevent double spending. In the digital world, files can be copied easily, but digital money needs to be spent only once. Blockchain uses cryptography and network verification to make sure the same crypto asset cannot be copied and spent again.