Miners (the human ones) also keep ledgers of transactions and act as Coinmarkets, so that a coin isn’t duplicated in any way. This keeps the system from being hacked and from running amok. They’re paid for this work by receiving new cryptocurrency every week that they maintain their operation. They keep their cryptocurrency in specialized files on their computers or other personal devices. These files are called wallets.
Let’s recap by going through a few of the definitions we’ve learned:
• Cryptocurrency: electronic currency; also called digital currency.
• Fiat money: any legal tender; government backed, used in banking system.
• Bitcoin: the original and gold standard of crypto currency.
• Altcoin: other cryptocurrencies that are patterned from the same processes as Bitcoin, but with slight variations in their coding.
• Miners: an individual or group of individuals who use their own resources (computers, electricity, space) to mine digital coins.
o Also a specialized computer made specifically for finding new coins through computing series of algorithms.
• Wallet: a small file on your computer where you store your digital money.
Conceptualizing the cryptocurrency system in a nutshell:
• Electronic money.
• Mined by individuals who use their own resources to find the coins.
• A stable, finite system of currency. For example, there are only 21,000,000 Bitcoins produced for all time.
• Does not require any government or bank to make it work.
• Pricing is decided by the amount of the coins found and used which is combined with the demand from the public to possess them.
• There are several forms of crypto currency, with Bitcoin being first and foremost.
• Can bring great wealth, but, like any investment, has risks.
Most people find the concept of cryptocurrency to be fascinating. It’s a new field that could be the next gold mine for many of them. If you find that cryptocurrency is something you’d like to learn more about then you’ve found the right report. However, I’ve barely touched the surface in this report. There is much, much more to cryptocurrency than what I’ve gone through here.