In recent years, the popularity of Bitcoin is on the rise and is the talk of many people. Bitcoin is an example of cryptocurrency or digital currency. In the digital era like now, using digital currency in various virtual transactions is commonplace. In fact, not a few people are interested in investing in cryptocurrency. Even though this investment is paying off, there are still signs that you need to pay attention to before buying digital currency. Come on, first get to know what cryptocurrency is in the financial world and also find out about Daisy AI.
Cryptocurrency is a digital currency that is used for virtual transactions on the internet network. Secret passwords that are quite complex serve to protect and maintain the security of this digital currency. The word “cryptocurrency” comes from a combination of two words, namely “cryptography” which means a secret code, and “currency” which means currency. The concept of cryptography has actually been known since the days of World War II. At that time, Germany used cryptography to send secret codes so that the opposing party could not easily read them. Unlike conventional currencies which are centralized, digital currencies are in fact decentralized. Neither party is present and acts as an intermediary in a transaction. Payments in digital currency take place from sender to recipient or peer-to-peer. However, all transactions carried out are still recorded and monitored in the cryptocurrency network system. Cryptocurrency miners are required to record these transactions and earn commissions in the form of usable digital money.
Cryptocurrency is a digital currency that is based on an internet network, used by certain parties with an identity that is guaranteed its confidentiality in the protection of a proven blockchain system. However, that doesn’t make cryptocurrency any less risky. Without regulations that become the legal umbrella, transactions with digital money are high risk. Not to mention the problem of fluctuations in the value of digital money that has not been stable, so that the fluctuation of currency values is so fast.
The advantages of cryptocurrency include:
The potential for future price increases is high.
Blockchain technology makes the digital currency payment process fast, secure, and easy.
Avoid counterfeiting because the blockchain system does not allow the same currency to carry out two different transactions.
With personal data security, you can make financial transactions without showing your real identity.