Introduction to Cryptocurrency pdf

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Introduction to Cryptocurrency pdf, this article is divided into four parts for an easy explanation of Cryptocurrency.

Barter System

Say before what Cryptocurrency is, we try to understand how human beings started the barter system and used coins and then, after that, currency notes for transactions all over the world. First, human beings in the world used to transact very simply in the barter system. If a household or individual had wheat, rice, fruit, or any other item of use in their daily life, they would get any other items to use from another household or person by giving them their own use items. So, the exchange of products is called the barter system. 

Introduction to Cryptocurrency pdf; The barter system is a big topic we will not discuss because our current topic is Cryptocurrency. When man grew up in civilizations, tribes, governments, and states, or we can say that human beings are divided into countries, every civilization and government or state introduced their own coins instead of a barter system for business. As we have already stated, the transactions that used to be used were of other useful items in exchange for one use, and over time man introduced a new object for transactions. To explain Barter System, it is very important for a simple explanation of Cryptocurrency.

Introduction to Cryptocurrency pdf

Start of Coins

When governments and states started coins for transactions, it was very difficult to accept this new thing in the early days because of the business process that had grown with the barter system, which the people who used to take items used to believe things would not be lost. But over time, the coins built up a trust of their own. When the new thing (coin) got their trust, confidence people started accepting it, so the use of coins continued to increase, and the barter system went away.

Introduction to Cryptocurrency pdf; A person who transacts under one system does not accept it so easily. The new system comes from a barter system to a coin system whenever there is a change. When a person gave wheat, rice, etc., to another person, he would get some other items of use in return, and then he believed that this transaction I was dealing in was my use because he believed that whatever I had found items was not wasted. Similarly, the man kept the objects I could give to anyone anywhere to meet his needs; the trust factor is most important for a simple explanation of Cryptocurrency.

Introduction to Cryptocurrency pdf

Start of Currency Notes

Then, as humans progressed, they went from coins to currency notes. When modern times came, the printing machines got their existence in modern ages printing on paper with the images of the head of stats; governments, etc., invented the new system of Currency Notes all over the world. The greatest aspect was faith, confidence, and trust in the upcoming transactions system. In any transaction, whether under the barter system, under coins, or under currency notes, the biggest currency aspect was trust developed by people first and second by governments.

Introduction to Cryptocurrency pdf; people can make a transaction anywhere in the world with currency notes, and governments have started their own banks. Banks in countries develop Lockers, ATMs, Counter Cash, Public Dealing, Loans, Insurance, and a large number of new policies in their system over time. Now, human beings are going through a period where internet users have grown in number swell stake all over the world, and many users buy and sell their money through the Internet, and we say it online transactions.

In the early days, the Internet was a source of information, and then it has also become a great source of buying and selling. We use the currency of this country concerned for buying and selling on the Internet, which is acceptable to all consumers and retailers. Now that the number of internet users and their sales has increased, there is a way in which we can buy and sell anything on the Internet, but it is not our common currency.  Now, human beings are changing their sources of transactions again.

Introduction to Cryptocurrency pdf; First, they have a barter system, then coins, then currency notes, and finally, they have a new idea of Crypto Currency, so the inventor of this idea, one and only Mr. Satoshi Nakamoto, the Japanese man, you can read the first article written on Blockchain, Bitcoin and Digital Currency by this Japanese man.

Introduction to Cryptocurrency pdf

Start of Digital Currency or Crypto Currency

If we put a simple explanation of Cryptocurrency is the currency from the internet world that you can buy and sell items and transactions of Cryptocurrency itself to someone. The most important thing that will be understood here is that when we used to transact things in the barter system, we could believe it by seeing the items because human beings trusted each other and were trading successfully. Similarly, when coins and currency notes were introduced, they also existed.

As a result, trust grew very fast, and people did not have any difficulties in their transactions and trusted them. But in the case of Cryptocurrency, people find it very difficult to understand how to trust a currency that does not physically exist. The most important point is that the aspect of trust is the only point on which any currency makes its place in the world in terms of transactions, and those who have doubts about it are because Cryptocurrency does not seem to exist.

Introduction to Cryptocurrency pdf; If I say that Cryptocurrency also exists from a technical point of view, it will not go wrong. I will also tell you about its existence at the end of this article. If Cryptocurrency does not exist, how it is being transacted in the world, it’s a kind of computer coding, which is happening through software employing graphic cards. Every common currency has a price. As a dollar is a price of its own, one euro has a price of its own.

Similarly, all the cryptocurrencies programmed in the world of cryptocurrencies so far have a price. Every digital currency has a price, and the highest valued Cryptocurrency is bitcoin. Your computer has bitcoin in the form of coding, for which there are separate graphic cards with software that show how they work and are generated. You must read our article regarding blockchain, mining, and centralized and decentralized system; then, you must be able to understand the whole concept of cryptocurrencies.

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