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  • Category: Technology

    Authenticity of cryptocurrency

    Have a query about cryptocurrency? Searching for information about the difference between mined coin and cryptocoins? Here, on this Ask Expert page do read the responses.

    How do we we know that available cryptocoin in market is a mined coin or coupon coin?
    There are more than 1500 cryptocoins available in cryptocurrency market.
    Cryptocoin is generated from one computer software as I knew from social network. Many people are doing trading of cryptocoins and saying that their company has started mining coin and within few months it will come in exchange. So I am getting difficulty in differentiating in mined coin from coupon coin.
  • Answers

    6 Answers found.
  • Currency is a generally issued by a government and circulated within an economy. It may be in the form of coins or notes. Cryptocurrency is not that different from tokens. Tokens are issued by some enthusiastic developers and it can be purchased and traded. It will become Cryptocurrency.
    Tokens can do more than cryptocurrency. Tokens are being used for various cases in the smart contracts where the tokens are accepted. The cryptocurrencies help transfer value in an accepted way like physical money but tokens can be used for various use cases.
    You please note cryptocurrency is not legal in our country. You better understand the concept furthe.

    always confident

  • A cryptocurrency is a new form of digital money that uses cryptography to secure the digital transaction as well as the creation of new units. Simply, it is a medium of transaction. They are self-contained systems which use many timestamping methods to avoid the need for the third-party verifier. This means the transaction does not require any other vendor and the transaction between two people is encrypted from end to end. This also means that cryptocurrency has no server or central authority.

    One of the famous cryptocurrency is Bitcoin. Bitcoin is the first cryptocurrency that was introduced in the year 2009. Although there are many other cryptocurrencies, Bitcoin is most popular one. So I will keep my further explanation in regard to Bitcoin only.

    Bitcoin is a digital currency. No bills to print or coins to mint. It's decentralized (as it is cryptocurrency) - there's no government, institution (like a bank) or other authority that controls it. The transactions are anonymous; instead of using names, tax IDs, bitcoin connects buyers and sellers through encryption keys. Bitcoin is "mined" by powerful computers over the internet. This requires a lot of hardware and power supply.

    Bitcoin is mined by complex algorithms and requires a lot of record keeping. This mining is done by an open-source software and the process is called 'mining'. When a person sends bitcoin to another, the transaction is recorded over the network called as 'block'. The 'mining' software will inscribe this transaction into a digital ledger. The entire 'blocks' recorded over the network is called as 'blockchain'. The miners will convert these blockchains into 'hash' which is a sequence of a code. This process of forming hash is the competitive part as many miners will be doing the same. When a new hash is generated, it's placed at the end of the blockchain, which is then publicly updated and propagated. The person who finishes first will get the bitcoins (12.5 bitcoins generally). This mining can be done in a pool or individually. The bitcoin generated in the pool is distributed to the miners in that pool. 21 million bitcoins is the maximum limit all over the world which can be mined and until the end of the year 2017, 17 million bitcoins have been mined.

    Bitcoin or any cryptocurrency is not officially recognized by the Indian government. It is not illegal but it isn't recognized legally. Although the recent 2018 union budget has showered some rays of hope on the blockchain system. There are officially no merchants that accept cryptocurrency in India but you can still mine any cryptocurrency of your choice. There are certain scam sites that offer bitcoin or any form of cryptocurrency coupons. Proceed with caution. It is generally safe to mine rather than buying new bitcoin. There are some genuine sites which sell bitcoin online. Example: Coinmama, CEX, Kraken, and Coinbase.

    The present value of one Bitcoin in INR is nearly 5 Lakhs. This value is not determined by any authority or any top authority finance controller. The value of cryptocurrency depends on people themselves. It depends on how much people are willing to pay. Before union budget was announced, the bitcoin value was nearly 11 lakhs.

    Don't start mining without proper preparation. It doesn't mean that if you have a super fast computer or if you buy high-end hardware you can mine the cryptocurrency quickly. Many have fallen to this misconception. Mining is super heavy competition and you must understand every concept of it. Also don't blindly assume that bitcoin is the best currency. Over the period of time, another cryptocurrency will become more popular. Also, remember that mining will make your hardware run to its maximum capacity which means there will be a lot of load on the computer and it can cause malfunctioning of your PC.

    Thank You
    Dr. V. Shashikanth

  • Crypto currency is an online digital currency which is either to be created through complex online mathmatical procedures (called mining) or to be purchased from online crypto currency exchanges by paying the local currency. The transactions are highly secured through encryption.

    The most interesting thing about this is that they are not backed by any Govt and not backed or honoured by any bank but surviving in their own online world.

    Strangely some of these crypto currency exchanges are doing hectic business in buy and sell of these currencies between the hands of prospective buyers and sellers. No Govt is getting a tax on these strange transactions.

    Another interesting thing is no one owns this kingdom of crypto currencies.

    Under such a situation the bubble of crypto currencies can burst at any time. Meanwhile some people have already minted money and some may be trapped in the meltdown. That is one apprehension and other situation is it may continue as it is until the world Governments stand against it.

    So frankly speaking there is no authenticity of these online currencies but they are there and quoting higher and higher price day by day as happens to share of a good company in growing market.

    People are taking risk and playing with these currencies and believe that if nothing has gone wrong till now, why it will be so in future.

    So it is up to one's wisdom to enter the world of crypto currency.

    Knowledge is power.

  • Cryptocurrency is a Digital Currency. All the Cryptocurrencies which are circulating in the market are mined from 2009 onwards. The Mining of cryptocurrencies is not a simple task. It uses the "BlockChain Technology" and you need to solve a puzzle within 10 minutes. Whoever solves the Crypto-puzzle is rewarded with a Cryptocurrency - The Bitcoin and other Alt Coins.

    Here is the Brief Explanation of getting and storing Bitcoins...

    Getting and Storing Digital Coins:

    One way to get coins is to mine them. The node can also create new blocks through the mining process. This is done by solving a cryptographic puzzle.
    Solving the puzzle:
    Each block takes approximately 10 minutes to mine. Solving the cryptographic puzzle is akin to guessing the number on a combination lock. There is no "smart" way to solve the puzzle; it can only be done by brute force. Thus, it is referred to as mining because the effort is needed to gain the reward. The difficulty of the puzzle is adjusted to adapt to changes in computing power in the network, such that each block takes approximately 10 minutes to mine.
    The miner can also collect any transaction fees attached to the transactions in the block. In this case, one gets coins for solving the cryptographic puzzle. The puzzle solver adds a transaction transferring coins to himself to the block he created. This usually appears as the first transaction in a block.

    The other way is to buy the coins from the exchanges. The exchanges are nothing but the websites where we can buy cryptocurrencies for the traditional currencies like US dollars or Euro. There are 3 different ways to buy from the exchanges.
    1.Trading Platforms – Sellers and Buyers connect directly to the websites and a transactional charge is taken for each transaction.
    2. Direct Trading – In this, you can directly do trading from person to person and exchange the currency. The Seller sets their own exchange rates since it does not have a fixed market price.
    3. Brokers – They are similar to the foreign currency exchange dealers. You can buy from their websites, in which the broker sets the exchange rates.
    To store the Coins, we need a Wallet. "Public addresses" (your account number) and "Private keys" (your password) are stored in these wallets You can use the same address for all your transactions or you can change an address every transaction to maintain privacy.

    In order to handle the Cryptocurrencies, a thorough knowledge is required in order to avoid the fraudulent transactions.
    People should be aware of the risk which is being involved in using it.

    Let's get educated about Cryptocurrencies.

  • For a layman, it is difficult to understand the strange ways of cryptocurrency. However, for people well versed with its mining techniques, it is a challenging but paying prospect.
    Recently the decreasing price of these currencies especially the Bitcoin is posing a problem for the miners who are using advanced digital techniques, to mine these online coins.
    The price of these bitcoins change as per their demand and availability and is somewhat like the stock market.
    One should trade in this area cautiously as these are neither backed by any Govt nor by any banks or financial institutions.
    In fact, some Governments in the world have already declared them as illegal.

    Thoughts exchanged is knowledge gained.

  • Cryptocurrency is a form of digital money which is designed to be secure and, in most of the cases, anonymous. It is a currency associated with the internet which uses cryptography. To handle the Cryptocurrencies, a thorough knowledge is required to avoid fraudulent transactions. People must be aware of the risk which is being involved in using Cryptocurrencies.

    The Ministry of Finance of our country has clarified that virtual currencies (i.e., the Cryptocurrencies), including bitcoins, are not currencies. So, these tenders are not legal in India.

    "If you are killed in action, you go to Heaven. If you win, you rule this Earth (as beautiful as Heaven). That is why, O son of Kunti, take a firm resolve and fight!"-- Shrimad Bhagwad Gita

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