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Value Of Cryptocurrency

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What is cryptocurrency and how does it work?

Cryptocurrency as it stands is a currency that exists digitally, accessed via multiple “wallets”, and acts completely independent of any banks, governments or companies. It is a deregulated currency that runs purely by those who buy into the world of cryptocurrency. Cryptocurrency is often referred to as “the future of money” as more and more of the world’s population buy into it.

Many factors that have lead to its success so far is that fact that cryptocurrency, as said before, is not dependent on any banks, governments or businesses. This means that should a very influential business for whatever reason go bankrupt, the value of cryptocurrency will go forward uneffected. Should there be a major …show more content…

Under the umbrella of cryptocurrency, there exists over 100 different types of cryptocurrency existing from Bitcoin, Bitcoin Cash, and Ethereum to name a few. Each cryptocurrency has its own “members” and its own value. These cryptocurrencies are accessed via applications called “wallets” and are very similar to online banking applications. Some wallets are only available in certain regions and only include the operation of certain cryptocurrencies. For example, Luno exists as a wallet for the South African region and offers the trading of Bitcoin and Ethereum. Another region could offer another wallet consisting of different cryptocurrencies to be …show more content…

The transaction is then recorded into a virtual ledger of that specific cryptocurrency. Another term relevant to cryptocurrency is “Blockchain” meaning that before the transaction can be authenticated and followed through, the transaction needs to be authorised three times. These transactions are authorised through other computers owned by individuals that are registered on the cryptocurrency network as “Miners” and for every transaction authorised, these “Miners” receive a share of a cryptocurrency in return.

The value of cryptocurrency is simply determined by the buying and selling of cryptocurrency. The more that is bought, this higher the price and the same goes to the more that is sold, the more the price will decrease. This system lends to the reason as to why cryptocurrencies are so volatile and do not follow any sort of fluctuation pattern. This could be the only factor that would make cryptocurrency less attractive to individuals who prefer a more risk-adverse

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