A cryptocurrency is a virtual currency which is secured by cryptography. Many experts say that it is impossible to double-spend or counterfeit.
Majority of the cryptocurrencies are decentralized networks and they are based on a technology called block-chain. This is a distributed ledger enforced by a network of computers.
It is important to note that there is no central authority to regulate cryptocurrencies. This is why they are considered to be immune (theoretical) to government manipulation or interference.
The word cryptocurrency is derived from encryption methods which are employed to secure the network.
Many people believe that block-chain technologies will disrupt many industries including law and finance.
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Cryptocurrencies are criticized for their use for illegal activities and the vulnerability of the infrastructure on which they are based. However, the cryptocurrencies have a strength in terms of being resistant to inflation, portable and transparent.
The first cryptocurrency which was based on blockchain technology is called bitcoin. This is the most valuable and popular cryptocurrency.
In 2009, a person or group of people known as Satoshi Nakamoto. It is reported that by August 2021, a total of 18.8 million bitcoins valued at $858.8 billion were in circulation. There are only 21 billion bitcoins in existence which means that they are not subject to manipulation and inflation.
After bitcoin success, other cryptocurrencies emerged such as Ethereum, Litecoin, peercoin, Namecoin, EOS and Cardano.
It is estimated that by August 2021, all cryptocurrencies were valued at $1.8 trillion out of which bitcoin contributed 46.5 percent of that value.
That is our brief notes on the cryptocurrency meaning for now.
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