Ask the Orb: Cryptocurrencies for dummies!

You ask, the Orb answers!

The cryptoverse is growing exponentially, and many are asking about what cryptocurrency all is about. Luckily, the Orb is here to answer all the questions and queries from those still new onboard the crypto cruise ship in transit to the moon!

What is cryptocurrency?

For starters, a cryptocurrency is a virtual or digital currency. You cannot duplicate it like any other currencies we have, and it’s also nearly impossible to counterfeit it. You can think of it as a digital token or coin of a project with value, just like any other physical coin.

You can acquire them by mining them through running a program on your computer, or you can simply buy them at legitimate websites and exchanges like Binance.

Cryptocurrencies are not issued or regulated by any governing bodies. They are what we call decentralized. It means cryptocurrencies are not owned and controlled by anyone, which is the complete opposite of centralized currencies.

In cryptocurrencies, there is no intermediary. This means there is no need for someone who could be a bridge to facilitate the transaction from one person to another, unlike in centralized currencies. When one needs to transfer a cryptocurrency with value, the transaction can be created from person to person.

Also Read: PRV For Your Thoughts: NFT craze, on!

Origin of Cryptocurrencies

In 2009, the first cryptocurrency was born called Bitcoin, dubbed as the father of all digital coins. It was created by Satoshi Nakamoto and is not the most valuable crypto ever existed. As of writing, Bitcoin (BTC) has a market cap of more than 1 trillion dollars and is still continuing to rise.

Since then, following the footsteps of BTC’s success, there are now more than 6,000 cryptocurrencies created and circulating in the market. Some of the most popular include Cardano, Solana, Polygon, Shiba Inu, Dogecoin, Ethereum, and Ripple.

Advantages and disadvantages of cryptocurrencies

There are a lot of positive benefits to the creation of cryptocurrencies. To mention some, cryptocurrencies provide an avenue for immediate transfer of funds, they are transparent as to where and when the transfer occurred, and they do not require you to input your sensitive information to transfer it.

However, some of the cons of cryptocurrencies that many are concerned about is the tendency of these digital coins to be used to launder money. Furthermore, since any entity does not regulate cryptocurrencies, when you fell victim of scams, you are on your own, and there is a large possibility that you can no longer retrieve what you have lost.

Also Read: The NFT project: What are they, and why should we have them?

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