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500 Word Essay Writing: Jad Mubaslat Benefits Of A Decentralized Currency Like Bitcoin Vs Fiat
According to Jad Mubaslat what are the benefits of a decentralized currency like Bitcoin? If you had to choose one, which system (centralized fiat money o
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Answered
Cryptocurrencies are forms of digital or virtual currencies that use cryptography for security. This makes them nearly impossible to counterfeit or double-spend.
The most distinguishing feature of cryptocurrencies is that they are generally decentralized systems based on blockchain technology—a distributed ledger enforced by a disparate network of computers, also known as nodes.
Bitcoin, created in 2009, was the first decentralized cryptocurrency, and since then, many other cryptocurrencies have been created. These are frequently called altcoins, as a blend of 'alternative' and 'coin.' Examples of these include Ethereum, Ripple, Bitcoin Cash, and Litecoin.
Unlike traditional financial systems, cryptocurrencies are not reliant on central banking systems or governmental jurisdiction. Transactions made with cryptocurrencies are pseudonymous – while public, they are not connected to users' real-world identities, only their respective cryptocurrency addresses.
Cryptocurrencies work through a technology infrastructure called the blockchain. Essentially, the blockchain is a public ledger where all committed transactions are stored. When a transaction occurs, it is recorded on a "block." When a block's memory is full, it is added to the end of the "chain" in sequential order.
Investing in cryptocurrencies, like any investment, involves risk. The value of cryptocurrencies is highly volatile; they can increase or decrease in value rapidly.
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