We can buy anything from the market very easily now. Because we have money. We can buy anything very quickly with money. Because its value is determined. But do you know what was used to buy and sell things 1000 years ago when money was not in circulation? Let's find out.
1000 or more years ago, things were bought and sold in exchange for other things. For example, if someone wanted to buy rice, they had to exchange it for something else, such as a homemade clay pot etc. That is, the medium of exchange was things. This is called the Barter tradition.
The reason for this is said to be that in ancient times, no commercial system was developed. Back then, almost everyone lived by farming. Therefore, no centralized currency was developed. It has many draw back. The main problem was that there was no real value for the goods. For example, some of the rice in exchange for a cow had no real value at all. So later on, this system of exchange was abandoned and the coin system was introduced. Buying and selling continued through gold coins, silver coins, and copper coins. But it became difficult for so many people. As the coins were very heavy, it became very difficult to transport or carry them. Again, there was a fear of the coins being stolen. Then paper currency was introduced. That paper currency is still in circulation today.
But so many difficulties continue to arise. For example, there is a fear of paper currency getting wet, torn or stolen. There is another problem in different way. The role of paper currency is much more important in the economic well-being of a country. For example, it is centralized e.i, a country can control paper currency. A country can print this currency according to its needs. If this currency is printed more than the need, the inflation of this country occurs. So now this acceptance is decreasing in many countries.
Fiat Currency: What used to happen is that any country could print as much paper currency as it had gold in it. This would not have created inflation in the country. But that is not acceptable now.. In many countries, the government prints as much notes as it wants without worrying about inflation. This is called fiat currency.
For all these reasons, there is a need for a new currency, which no one can control alone. This currency will be decentralized. For this, a Japanese named Satoshi Nakamoto invented the first bitcoin in 2009. This cryptocurrency runs on a technology called block chain technology. Now let's find out how this block chain technology works.
Block Chain Technology :- When a transaction occurs in a bank, it is recorded in a register. This is done automatically in the computer. This is called a ledger. But there is a problem with this. If somehow a banker deletes any transaction from this ledger, then we will not have any account of it. Because this ledger is only in that bank. That is, it is centralized.
But no one can ever delete the record of this ledger in Crypto Currency. But how is this possible? Let's find out.
In the case of block chain technology, when a transaction occurs, its update is done in this ledger in different places around the world. Since it is decentralized, no organization has this ledger. It is spread all over the world. They are called minors. When a transaction occurs, the ledger spread all over the world is updated. Now if at any time any error occurs in the computer of a minor, then it will not be updated by the computer of the next minor. Then the entire transaction will become invalid. So it cannot be manipulated in any way.
For these reasons, the popularity of crypto currency is increasing day by day. The most popular cryptocurrency today is Bitcoin. Its value is increasing day by day. When I write this blog, the value of Bitcoin is about 8 million rupees. There are also other cryptocurrencies such as Ethereum, Tether, Ripple, Solona, Dogecoin, etc. You can invest in cryptocurrency if you want. It may make you profitable in the future.
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