The Full Definition of What is Crypto Currency

The Full Definition of What is Crypto Currency  - Cryptocurrency is a decentralized digital currency and is managed by a peer-to-peer technology network. Its implementation depends on cryptographic principles to validate transactions and the generation of the currency itself. Or it could be called in another sense a form of currency that is calculated or mathematical only. Unlike paper coin or metal coin, which is in print. Cryptocurrency is produced by solving cryptographic math problems.

All cryptocurrency is an alternative currency because no country adopts it, as an alternative fiat currency. Therefore, the value can not be influenced or inflation caused by the central bank, The value is determined by enthusiasts, supply and demand in the market just like gold or other precious metals.

In general cryptocurrency is designed gradually to introduce a new unit of currency ensuring a fixed total amount of money to be circulated and inovation for the survival of the currency itself. This is done to mimic the scarcity and value of precious metals and avoid hyperinflation. In comparison to the physical currency held by financial institutions or stored as cash, cryptocurrency is less susceptible to confiscation by law enforcement.

An almost unreliable semi-anonymous transactions have created markets for illegal transactions such as drugs, firearms and banned items. Since there is no central or law enforcement repository either payment processing has jurisdiction to freeze the user account of cryptocurrency.

But for proponents of this anonymity, cryptocurrency is one of the main strengths of technology because it allows for a shift of power from the institution to the inviduals even though its aim is forbidden but still more with a better purpose. Well that’s a glimpse of the definition of Cryptocurrency and hopefully can be understood