Cryptocurrency

What is Cryptocurrency?

The most famous Cryptocurrency was developed in 2009 by developer Satoshi Nakamoto. Payments in the system are recorded in the general ledger using the unit's own account, which is also called cryptocurrency. Payments works peer-to-peer without a central repository or a single administrator, who has led the Treasury to call cryptocurrency decentralized virtual currency. Despite its status as the currency issue, media reports often refer to as cryptocurrency or digital currency.

Cryptocurrency created in exchange for the payment process work where users offer their computing power to verify and record payments to the general ledger. Called mining, individuals or companies engaged in this activity in exchange for transaction fees and freshly made cryptocurrencies. In addition to mining, cryptocurrencies can be obtained in exchange for fiat money, products, and services. Users can send and receive electronic cryptocurrencies for transaction costs optionally using wallet software on a personal computer, mobile device, or web application.

Cryptocurrency as a form of payment for products and services has seen growth, and traders have an incentive to accept the digital currency because of the lower cost of 2-3% normally charged by the credit card processor. The European Banking Authority has warned that cryptocurrency not have consumer protection. Unlike a credit card, the cost paid by the buyer is not the vendor. Cryptocurrencies can be stolen and chargebacks are not possible. Cryptocurrency commercial use when small compared with its use by speculators, which has fueled price volatility.

Cryptocurrency has been the subject of scrutiny amid fears that it could be used for illegal activities. In October 2013 the US FBI shut down the Silk Road online black market and seized 144,000 cryptocurrencies worth US $ 28.5 million at the time. The US considered cryptocurrency young compared with other governments. In China, buying cryptocurrency the yuan is subject to restrictions, and the exchange cryptocurrency not allowed to hold a bank account.