Cryptocurrency is a digital or virtual currency which uses cryptogram for security purpose. It is hard to identify cryptocurrency for its complex security features.For this types of features, anyone can easily transfer illegal money transfer or even use for TAX dexterity.
It is not issued by Central Banks. But, this issue is not creating the problem for Cryptocurrencies. The popularity of such type of currencies increases day by day. There are many types of cryptocurrency available (Bitcoin, Litecoin, PPcoin, Namecoin).
Among all the cryptocurrencies Bitcoin is the most popular cryptocurrency. Bitcoin was started in 2009 by a group of people or a person known as Satoshi Nakamoto.
In a research in 2015, it Estimates that a total amount of $14.6 million Bitcoin. circulation in the economy worth the value $3.4 billion. The value of cryptocurrency always depends on supply and demand facts.
How it works:
The mechanism of Cryptocurrency is very complex. Most people are not aware of its
process.The coin of Cryptocurrency is provided by Blockchain. Blocks are containing records, link with each other and secure by using cryptogram. Each Block contains a hash pointer as a link with connecting with another block, a timestamp and transaction data. A Blockchain manage by peer to peer network. The data in one Block cannot be changed. It is a computing system with high Byzantine fault tolerance.
The benefits of Cryptocurrency:
It is a secure way to transfer money, buy products online.Even there is no problem for
Money Exchange rate.It is hard to tract the process of Cryptocurrency transaction.
Most Central Bank thought this types of currency used for illegal works such as money
laundering, hiding illegal assets or tax hoax. Cryptocurrencies are virtual currency and do not have physical existence. Cryptocurrency value rate may increase or decrease on the basis of demand and supply. It may change anytime, it does not authorize by any Central Bank. so there is risk invest in Cryptocurrency.
Though there are some problems in Cryptocurrencies. Near future, it will be the great the invention in Digital financing system.