What-is-CryptocurrencyKK
Welcome to my complete beginner’s guide to What is Cryptocurrency.
The short and easy answer to the title question is that cryptocurrency is a decentralized digital money. But what exactly does that mean and how does it work?
In this guide, I will answer all the questions you have about cryptocurrency. I’m going to tell you when it was invented, how it works and why it’s going to be so important in the future. By the end of this guide, you’ll be able to answer the question, “what is cryptocurrency?” for yourself.
The world of cryptocurrency moves fast so there’s no time to waste. Let’s get started!
When I hear a new word, I look up its definition in my dictionary. Cryptocurrency is a new word for most people so let’s write a crypto definition…

How Does Cryptocurrency Work?

What is Cryptocurrency
What is Cryptocurrency
MINING
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Miners try to solve mathematical puzzles first to place the next block on the blockchain and claim a reward.
What is Cryptocurrency
EXCHANGE
An exchange is a business (usually a website) where you can buy, sell or trade cryptocurrencies.
What is Cryptocurrency
WALLETS
Cryptocurrency wallets are software programs that store public and private keys and enable users to send and receive digital currency and monitor their balance.

The Origin of Cryptocurrency

In the early 1990s, most people were still struggling to understand the internet. However, there were some very clever folks who had already realized what a powerful tool it is.
Some of these clever folks, called cypherpunks, thought that governments and corporations had too much power over our lives. They wanted to use the internet to give the people of the world more freely. Using cryptography, cypherpunks wanted to allow users of the internet to have more control over their money and information. As you can tell, the cypherpunks didn’t like trusted third parties at all!
At the top of the cypherpunks, the to-do list was digital cash. DigiCash and Cybercash were both attempts to create a digital money system. They both had some of the six things needed to be cryptocurrencies but neither had all of them. By the end of the
the nineties, both had failed.
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What is CryptocurrencyThe world would have to wait until 2009 before the first fully decentralized digital cash system was created. Its creator had seen the failure of the cypherpunks and thought that they could do better. Their name was Satoshi Nakamoto and their creation was called Bitcoin.
Understanding cryptocurrency means first understanding Bitcoin…

The Story of Bitcoin

No one knows who Satoshi Nakamoto is. It could be a man, a woman or even a group of people. Satoshi Nakamoto only ever spoke on crypto forums and through emails.
In late 2008, Nakamoto published the Bitcoin whitepaper. This was a description of what Bitcoin is and how it works. It became the model for how other cryptocurrencies were designed in the future.
On January 12, 2009, Satoshi Nakamoto made the first Bitcoin transaction. They sent 10 BTC to a coder named Hal Finney. By 2011, Satoshi Nakamoto was gone. What they left behind was the world’s first cryptocurrency.
 





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