CRYPTOCURRENCY AND DIGITAL CURRENCIES

 Imagine you're having a conversation with your friends now at some point in this conversation someone's going to bring up cryptocurrencies now cryptocurrencies are something that everyone wants to talk about but no one knows how they work so today I'm going to fix that.

I am route from simply learn and this is cryptocurrency explained since man world currency has been a very important part of our lives in the caveman era they use the barter system now the barter system involves goods and services being exchanged among each other so now we have a situation where a caveman is exchanging seven apples and getting oranges in return now the barter system fell out of use because it had some glaring flaws now these flaws include having people's requirements coincide for example say you have Phi apples and your friend has five oranges you want some of his oranges now until and unless your friend requires the apples that you own he'll not be ready to make an exchange for it there's no common measure of value. now since there's no common measure in terms of which value of a commodity can be expressed there's a problem when you have to decide how many apples you are ready to trade for one orange or mango, not all codes can be divided or subdivided for example you can divide a live animal into different smaller units the goods cannot be transported easily. now unlike our modern currency fits in your wallet or your mobile phone the goods that you own cannot be taken with you everywhere you go after realizing that the barter system then works very well currency went through a few iterations. in     BC an official currency was minted in thousand     AD gold plated Florence was introduced and this was used across Europe and from to paper currency gained widespread popularity and was used across the world.

This is how modern currency as we know it came into existence modern currency included paper currency and coins credit cards and digital wallets for example you have Apple pay Amazon pay DM Pay Pal and so on all of this was controlled.

By banks and governments now this means that there was a centralized regulatory authority the delimited how paper currency and credit cards worked now imagine the scenario of doing an online transaction here you're thanking your friend for paying for your lunch are you saying that you're sending the money to their account now this transaction takes place successfully but there are several ways where this could have gone wrong.

Cryptocurrency now imagines the transaction between two people in the future one of them has the Bitcoin app and there's a notification asking whether they are sure they're ready to transfer five bitcoins if yes processing takes place here we're authenticating the user's identity checking whether they have the required balance to make that transaction and other things now after that's done the payment is transferred and the payment is received all of this happens in a matter of minutes and is as simple as that.

Cryptocurrencies available now there are some popular ones like Bitcoin Litecoin it's Harry amends each cash and new cryptocurrency crops up every single day now considering how much growth they're having at the moment there's a good chance there's plenty more to come in the upcoming years so what exactly is cryptocurrency a cryptocurrency is a digital or virtual currency that is meant to be a medium of exchange now cryptocurrency is quite similar to real-world currency.