Crypto Currencies
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Crypto Currencies
Cryptocurrency refers to a digital form of currency created for virtual transactions between individuals. Unlike physical objects, cryptocurrencies exist solely as data, meaning you cannot physically possess a Bitcoin or store Ethereum in a safe.
Decentralized cryptocurrency is generated by the entire cryptocurrency network as a collective effort, following a predefined rate set during the system's inception and publicly disclosed. This stands in contrast to centralized banking and economic structures like the Federal Reserve System, where currency supply is governed by entities such as corporate boards or governments. They achieve this by printing fiat money units or making additions to digital banking ledgers
Cryptocurrency types
Decentralized Cryptocurrency
A decentralized cryptocurrency is a digital currency system that operates without a central authority. Transactions are verified by a distributed network of nodes, and new coins are generated through mining. Examples include Bitcoin, where the total supply is predetermined and not controlled by any single entity
Centralized Currency System
A centralized currency system is one where a central authority, like a government or central bank, controls the supply, issuance, and value of the currency. This authority can print physical money or adjust digital records to manage the money supply and implement economic policies. Examples include the US Dollar controlled by the Federal Reserve System.
