Cryptocurrency Fundamentals

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What is crypto currency – It is a digital or virtual currency that is meant to be a medium of exchange

Features

  • There is a limit to how many units can exist for example bitcoin is pegged at 21 million after which no more bitcoins will be minted, thus it becomes an asset and also still a currency
  • Easily verifies the transfer of funds to the second party
  • There is no central government in charge or bank delaying and approving transactions
  • Little or no transaction fees
  • Access to money at any time
  • Anyone can use
  • No limits on purchases and withdrawals

BITCOIN: Is a form of digital currency and is decentralized without a central bank. It uses blockchain to perform transactions on a peer-to-peer network

ETHER: Is a currency that is accepted on the Ethereum network. Ethereum works on blockchain technology to create an open-source platform to build and deploy decentralized applications

Both bitcoin and Ethereum are the biggest coins in the market right as there are over 2000 coins and everyday a new coin is added to the list, Bitcoin and Ethereum are widely accepted all over the world for real world transactions such as payment of goods and services and usage of ether on the Ethereum network to build and deploy decentralized applications

 

Blockchain came about to deal with the current issues in banking systems which we are all aware but some of these problems are listed below in no particular order

  • High transaction fees e.g., ATM Fees, USSD Charges, Stamp Duty charges, account maintenance charges
  • Charge back errors and double spending especially with POS errors and banks transacting twice and not refunding for months
  • Fraud
  • Recession
  • System failure
  • Bad loans
  • NBBS, NDIC issues
  • Prone to Hack
  • Banks can delay or deny your transactions based on government policies such as the recent ban on cryptocurrency transactions in Nigeria, India and other countries
  • Online payment solutions can block your accounts such as paypal, payoneer, paystack, patm, flutterwave, etc., their algorithms can block your wallet for no valid reason

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