what is cryptocurrency

What is Cryptocurrency?

Learn about cryptocurrency with Sanjay Dutt

Learn about cryptocurrency with Sanjay Dutt

Case Breakdown: Movie Dus

The scene that you saw shows Siddhant Dheer (played by Sanjay Dutt) trying to decrypt a name called Jeet. He is continuously working on this cryptic word to make sense of the date and time of the attack. Siddhant is a part of a team of specialists who is on a mission to catch a terrorist.

In this blog, Learning Perspectives will explore the meaning of cryptocurrency.

What is Cryptocurrency?

Cryptocurrency is made up of two words crypto and currency. Crypto is anything that is concealed or hidden and is in the form of a secret. Similar to the scene that we just saw. Siddhant is decrypting the word Jeet to figure out either the location or date of the attack. The word Jeet is cryptic.

Similarly, in cryptocurrency, crypto means that the currency is concealed or encrypted which makes it difficult to counterfeit. This currency is digital or virtual in nature.

What is Blockchain?

Cryptocurrency networks are based on blockchain technologies. Blockchain technologies are ledger system that is maintained by a different network of computers.

cryptocurrency

Blockchain technologies provide many benefits mainly due to their security features. This allows blockchain technologies to be a part of different industries too. In most blockchains or distributed ledger technologies (DLT), the data is structured into blocks and each block contains a transaction or bundle of transactions. Each new block connects to all the blocks before it in a cryptographic chain in such a way that it’s nearly impossible to tamper with.

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Cryptocurrencies are not issued by any central authorities. In India too, the currency is not regulated. Reserve Bank of India does not regulate it and has reservations against it. Even though the currency is being traded here through various platforms.

More than 13,000 cryptocurrencies are traded such as bitcoin (BTC), Etherium (ETH), Binance coin, etc. Bitcoin is one of the most famous cryptocurrencies.

Is it wise to invest in Cryptocurrencies?

One can receive a good return on these currencies and that is through mere speculation. These currencies are not yet regulated, hence investing in this currency is on a chance basis. Even though it can’t be completely written-off. One can safely invest in cryptocurrency by studying past trends. There has been close to a 200,000% increase in cryptocurrency investment in India. India is a young country which means youth is a risk-taker and can invest. Individuals who are risk-averse should be prudent before investing in cryptocurrency.

References: https://www.ibm.com/in-en/topics/blockchain-security

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