London, UK, 3rd August 2021, ZEXPRWIRE –
Cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. Victoria-Coins Broker Jack Roberts says that a defining feature of a cryptocurrency is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation. Cryptocurrencies typically feature decentralized control (as opposed to a centralized electronic money system, such as PayPal) and a public ledger (such as bitcoin’s blockchain) which records transactions.
The main difference between cryptocurrency and traditional systems like fiat money is the way in which the blockchain is stored.
Cryptocurrency exists as data and not physical coins or banknotes like traditional monetary systems do. The only physical manifestation of cryptocurrency are the digital exchanges which display a public ledger recording transactions; these are known as cryptocurrency exchanges. These online ledgers serve to provide proof of ownership of any and all transactions which occur between the parties involved in the transaction(s). Each transaction is verified multiple times on the blockchain by miners.
It allows one to send digital payments directly from one party to another without going through a central authority (i.e. bank). This results in lower fees, as the centralized third-party service provider is no longer required for a transaction between two parties when using cryptocurrencies. The use of cryptography provides additional security measures, such as making transactions virtually impossible to counterfeit.
Who is a miner?
A ‘miner’ is simply another user of cryptocurrency. Only miners can add a block to the blockchain, and they are incentivized by earning units of cryptocurrency for each block added; this serves to keep miners honest. Mr Roberts says that any crypto cannot experience a “boom” if it does not have access to blockchain which runs due to miners.
Today we have many different types of cryptos and Mr Roberts has helped us pick 4 out of more than 4000. He says these 4 have proved to be highly profitable for investors.
Bitcoin (BTC) is the first and most well-known cryptocurrency in existence. The concept of Bitcoin was developed by Satoshi Nakamoto, and the original software for the Bitcoin network was released as open-source in 2009, with many developers working to improve it ever since. Bitcoin can be used without a bank or any central authority. Bitcoin features a limited supply of 21 million coins, which makes it one of the most deflationary currencies in existence today. The maximum amount of Bitcoin that will be released is calculated through a difficult mathematical problem. It was initially set to be halved at random intervals every four years (210,000 blocks). This means that the first 210,000 blocks were mined faster than the next 210,000. Every four years after that, the amount of new coins being released by mining halves again.
Ethereum is a blockchain-based decentralized platform for apps that run smart contracts. It was proposed in late 2013 by Vitalik Buterin, and the network went live on 30 July 2015. The project was bootstrapped via an ether pre-sale (now ended) with the total Ether to be released capped at 18 million. Ethereum can issue tokens called Ether. These can be used to pay for transaction fees or other services on the network. They are also traded on cryptocurrency exchanges. Like Bitcoin, Ethereum is based around a proof-of-work consensus algorithm (with a slight twist).
Litecoin was released in October 2011 by former Google employee Charles Lee as an alternative to Bitcoin. It is based on the same code, so technically a fork of Bitcoin, but with different parameters for mining rewards and difficulty. Litecoin aims to process blocks every 2.5 minutes (compared with 10 minutes for Bitcoin), which would make it four times faster than its counterpart in terms of transaction speeds. Litecoin also has a larger maximum number of coins: 84 million (four times more than Bitcoin), and therefore offers less ‘investment’ potential per unit, with the value of each coin expected to rise proportionately less as time progresses.
Bitcoin Cash (BCH)
Bitcoin Cash is based on the same code as Bitcoin but has a larger block size of 8mb. Its main aims are to process transactions faster and cheaper than Bitcoin. In the past year, some developers have suggested that this currency should be used by people who wish to make large payments directly on the blockchain (without banks). The coin was forked out of bitcoin in August 2017, when the original software for Bitcoin was split into two parts: a new version of the software with capabilities that support more transactions per second, called Bitcoin Cash (BCH), and an older version supported by most miners simply called Bitcoin (BTC).
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