How Crypto Currency came into existence at first?
Crypto currency is a system of currency that was created for the first time by a pseudo anonymous crypto coin developer, who was named Satoshi Nakamoto. This crypto currency was named as Bitcoin
and this Bitcoin was created in the year 2009. Bitcoins use a Secured Hash Algorithm SHA-256, as its Proof of Work mechanism.
Hal Finney, later created a currency system that was based on a system of reusable Proof of Work (PoW)
. This crypto currency is actually a decentralised digital currency, which is encrypted and works on a peer to peer system. The transactions of crypto currency are recorded in a ledger that is public, through a process of confirmation, that is popularly known as mining the crypto coin.
Why was crypto currency invented?
Crypto currency enabled people to function as their own banks. Crypto currency was a happy deviation from the traditional FIAT currency in the secured bank accounts, with credit and debit cards etc. Crypto currency made use of the technology and stepped into the era of digital currency, a currency which was absolutely decentralised and fully global in nature.
Crypto currency brought freedom to its users. No one was now needed to depend on any financial institution to store the valuable money and arrange sending the money from one place to another place, through out this world. Crypto coins made economy beyond limitations with astounding implications.
What are the impacts of digital currency to financial transactions?
The crypto currency has affected the banking, the finance and the economies by providing an access to the dark web. This dark web is accessible only through special software, that empowers anonymous searching of the internet.
Digital currency has also started speculations in money market. The value fluctuations in a crypto currency
are extreme and it has encouraged practice of trading in crypto coins.
Crypto currency has liberated money transactions from being made only either through banks or centralised financial institutions. Now this power has shifted from government agencies to the masses.
The central banks have now become apprehensive of crypto currency. Digital currency is now a tool for money laundering outside the country. Crypto currency has started new money markets in the world. The markets are now dealing in digital currency instead of FIAT currency and now they are out of bounds of banks etc.