Bitcoin was born under mysterious circumstances as open-source code in 2009. Bitcoin is a peer-to-peer digital currency transacted in blockchain and traded in crypto exchanges. The crypto uses a network of connected computers for worldwide transactions.
Why Bitcoin is a cryptocurrency
Why is this digital currency named cryptocurrency? Let's view it as crypto+ currency. The term «crypto» refers to cryptography, the prominent feature of this digital currency. Cryptography is about coding – creating and cracking of codes for secure financial communication. Cryptography uses encryption and intricate mathematical algorithm that are crucial for hiding the details of financial transactions. Cryptography is also helpful in maintaining reliable records of sales. The term «currency» refers to money that can be used as a means for payments. Though cryptocurrency is not like real-world fiat currencies, yet has the potential to serve the real purpose of money; only the transaction method is different. Anyone needs to know the cryptocurrency basics to understand how cryptocurrency works.