What Is Cryptocurrency? Know Reasons Behind Its Surging Popularity; Here's All About Bitcoin, Ether, Dogecoin

There has been a lot of curiosity about cryptocurrencies for the past few months. This has happened due to the tremendous volatility in the crypto market in the past. 

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New Delhi: This year, cryptocurrencies generated huge curiosity around the world. At the beginning of the year, digital currencies like bitcoin, dogecoin made a huge jump, but by the time of May, their value suddenly dipped.

The investors who lost their profits are gaining momentum again. That is why there is a tremendous curiosity about cryptocurrencies.

What is cryptocurrency?
Cryptocurrency is a digital currency that has value but cannot be seen or touched. It exists in digital form and transactions can be done online. Unlike how governments of the country issue currency or paper notes or coins in exchange for a fixed value, cryptocurrency does not work that way. Digital currencies are encrypted i.e. coded, hence they are also called cryptocurrencies. Its transactions are managed by the distributed ledger which ensures its transparency. It also brings anonymity through the use of encryption. Initially, there were a lot of apprehensions about its value. There was a time when only two pizzas could be bought with 10 thousand bitcoins. Today it is the most expensive token money. Several companies have also begun to accept cryptocurrency as a payment system.  

Is it Legal?
Some South American countries have recognized cryptocurrencies but there are no formal guidelines for this. Almost all countries including India, USA have not yet recognized cryptocurrencies. Therefore it is not valid everywhere. But the central banks of many countries are moving in this direction. Cryptocurrency is banned in India but RBI recently said that it is considering bringing its own digital currency. 

Why is cryptocurrency becoming so popular?
The biggest reason is that it has started getting more returns than expected. There was a time when 10 thousand bitcoins could get you only two pizzas but now the price of one bitcoin is around Rs 17 lakh. Many people are investing real money in buying bitcoins in the hope of good returns. Tesla owner Elon Musk has said that cryptocurrency could prove to be the currency of the future. 

How to trade cryptocurrencies
According to the CoinMarket Cap website, more than 11 thousand cryptocurrencies are being traded through public exchanges all over the world. According to the website, cryptocurrencies worth $1.5 trillion are currently in circulation in the market. Cryptocurrency is mostly traded through exchanges. There are currently 19 crypto exchange markets in India for buying and selling cryptocurrencies, in which the name of WazirX was in the news recently.

Names of some popular cryptocurrencies
Bitcoin, Ethereum, Tether, Binance Coin, Cardano are some popular ones. Of these, Bitcoin is the oldest. It was launched in 2009 after a huge economic recession in 2008. It was created under the pseudonym Satoshi Nakamoto.