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What Is Cryptocurrency?

The word BITCOIN has recently become abuzz in Zambia following its theatrics on the international scene after its value skyrocketed from US$10,000 to US$20,000 within 4 weeks before calming down to US$14,000 where it has rallied. However, its relative non-existence on the local scene is staggeringly appalling. I find it appalling because the amount of activity around bitcoin worldwide is huge. In some countries, you can pay for goods and services using bitcoin. Just in South Africa a number of retailers are accepting bitcoin as a form of payment. So why not here in Zambia?

Normally, a blog would choose to align itself with one or two particular cryptocurrencies and write about those. However, in my short experience with cryptocurrencies I have come to learn that at some point sooner or later you will have to deal with a mix of different cryptocurrencies. Therefore, on this blog I will talk about crytocurrency generally and then narrow it down to the most common ones, or should I say, the top 5 list.

So then, What Is Cryptocurrency? Wikipedia defines cryptocurrency as a digital asset designed to  work as a medium of exchange that uses cryptography to secure its transactions, to control teh creation of additional units, and to verify the transfer of assets. The Telegraph Newspaper defined it as a form of digital money that is designed to be secure and, in many case, anonymous. It is a currency associated with the internet that uses cryptography, the process of converting legible information into an almost uncrackable code, to track purchases and transfers.

I must admit, that was a bit of a mouthful. In simple terms, crytocurrency is digital money which is not controlled by any government or bank. More like internet money.

Bitcoin was the first cryptocurrency and it is still widely and wildly sought after. However, since its creation in 2009 there has been an emergence of over 1,000 cryptocurrencies, and the number keeps growing. These include Ripple, Ethereum, Litecoin, to mention but a few.

There we have it, cryptocurrency is basically digital money which is not tangible like paper money but can be used pretty much like paper money.

Sources:
www.99bitcoins.com
www.wikipedia.com
www.telegraph.co.uk

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