What is Crypto Currency?
Crypto currency is a form of digital or virtual currency that uses cryptography for security. It operates independently of a central authority, such as a government or bank, making it decentralized. Transactions are recorded on a public ledger called a blockchain.
How Does Crypto Currency Work?
When a transaction is made with a crypto currency, it is verified by a network of computers. Once verified, the transaction is added to a block and added to the blockchain. Miners, who use powerful computers to solve complex mathematical problems, are rewarded with new coins for their efforts.
Types of Crypto Currencies
- Bitcoin
- Ethereum
- Ripple
- Litecoin
- Bitcoin Cash
Benefits of Crypto Currency
- Decentralization
- Lower transaction fees
- Security and privacy
- Accessibility
Case Study: Bitcoin
Bitcoin, the first crypto currency, was created in 2009 by an unknown person or group of people using the pseudonym Satoshi Nakamoto. Since then, Bitcoin has become the most popular and valuable crypto currency, with a market cap of over $600 billion.
Statistics
According to CoinMarketCap, there are over 8,000 different crypto currencies in existence, with a total market cap exceeding $1.5 trillion. The top 10 crypto currencies by market cap include Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash.
