A crypto currency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many crypto currencies are decentralized networks based on block chain technology—a distributed ledger enforced by a disparate network of computers. A defining feature of crypto currencies is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.
• A cryptocurrency is a form of digital asset based on a network that is distributed across a large number of computers. This decentralized structure allows them to exist outside the control of governments and central authorities.
• Experts believe that blockchain and related technology will disrupt many industries, including finance and law.
• The advantages of cryptocurrencies include cheaper and faster money transfers and decentralized systems that do not collapse at a single point of failure.
• The disadvantages of cryptocurrencies include their price volatility, high energy consumption for mining activities, and use in criminal activities.
Crypto currencies are digital or virtual currencies underpinned by cryptographic systems. They enable secure online payments without the use of third-party intermediaries and traders. “Crypto” refers to the various encryption algorithms and cryptographic techniques that safeguard these entries, such as elliptical curve encryption, public-private key pairs, and hashing functions.
Crypto currencies can be mined or purchased from crypto currency exchanges. Not all ecommerce sites allow purchases using crypto currencies. In fact, crypto currencies, even popular ones like Bit coin or bitcoin tokens, are hardly used for retail transactions. However, the skyrocketing value of crypto currencies has made them popular as trading instruments. To a limited extent, they are also used for cross-border transfers.
