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Off Topic Cryptocurrencies


ALEN TL#5009
Gold Elite
Sep 18, 2021
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A cryptocurrency is a collection of binary data used as medium of exchange. They are underpinned by cryptographic systems. Cryptocurrencies can be either mined or bought from cryptocurrency exchanges.

Common Types of Crypto
Some common cryptocurrencies are Bitcoin, Etherium, XRP, Tether, Cardano, Solana and Stellar.

Are crypto legal??
Cryptocurrencies are not backed by any public or private entities. Therefore, it has been difficult to make a case for their legal status in different financial jurisdictions of the world. It doesn't help matters that cryptocurrencies have largely functioned outside most existing financial infrastructure

Advantages of Crypto
They are decentralized. Centralized intermediaries, such as banks and monetary institutions, are not necessary to enforce trust and police transactions between two parties
=> Cryptocurrencies promise to make it easier to transfer transfer funds directly between two parties, without the need for a trusted third party like a bank or a credit card company
=> Because they do not use third-party intermediaries, cryptocurrency transfers between two transacting parties are faster as compared to standard money transfers
=> Cryptocurrency markets have skyrocketed in value, reaching almost $2 trillion at one point of time, in the past decade. Thus, cryptocurrency investments can be used to generate profits.

Disadvantages of Crypto
High volatility and potential for large losses
=> Black Market Activity
=> Unregulated and unbacked, Cyber hacking

Can you generate cryptocurrencies
Cryptocurrencies can be obtained from mining. i.e. Bitcoin can be obtained by bitcoin mining.

Block Chain
A blockchain is a distributed database that is shared among the nodes of a computer network. As a database, a blockchain stores information electronically in digital format.
=> They maintain a safe and decentralized record of transactions.

Working of Block Chains!
The goal of blockchain is to allow digital information to be recorded and distributed, but not edited. In this way, a blockchain is the foundation for immutable ledgers, or records of transactions that cannot be altered, deleted, or destroyed