So what is a cryptocurrency?

Bitcoin would be the best renowned of all cryptocurrencies, and we have watched its rise, fall and rose to fame again. So what is Cryptocurrency exactly?

To understand what Cryptocurrencies are, you need to understand the concept of virtual and digital platforms for conducting business transactions and activities. Which is essentially that it is online. Cryptocurrencies, sometimes referred to as virtual currencies or more recently as digital currencies; these are electronic funds. However the electronic funds do not represent their physical counterparts as notes or coins.

They are however a digital token, bitcoin or cryptocurrency unit. These digital tokens are created from code using an encrypted string of data blocks, known as a blockchain.

Cryptocurrencies are used as payment systems to execute contracts and run programs. Anyone can create a digital currency, and there can be thousands of cryptocurrencies in circulation.

The Reserve Bank of Australia website explains further how cryptocurrencies work.

What is Blockchain?

Blockchain is a specific type of database that stores data in blocks that are chained together. As new data comes in, it becomes a new block. Once the block is populated with data, it's chained to the previous block, making a chain. Blockchain is decentralised so that no one person or group has control and all users collectively retain control. All data entered is irreversible, which means transactions are permanently recorded and viewable to everyone. 

What is centralized and decentralized currency?

The term centralised Cryptocurrency relates to the use of a third party to conduct the transaction, as in the case of the stock market, you require a clearing-house. Decentralised currency means there are no middle man and no fees for a transaction.

Can you buy and withdraw cryptocurrency for cash?

Some digital currencies can be purchased or withdrawn on an exchange platform using traditional money.

Bitcoin (BTC) is also known as digital gold. The currency launched in 2019 at 8 US cents and is sitting now around $68,000.

Ethereum (ETH) is a decentralised open software platform based on blockchain technology that enables developers to build and employ decentralised applications such as smart contracts. It was launched in 2015 and first traded at 0.67 US cents, and today its value is around $1500.

Ethereum (ETH) is a decentralised open software platform based on blockchain technology that enables developers to build and employ decentralised applications such as smart contracts. It was launched in 2015 and first traded at 0.67 US cents, and today its value is around $1500.

Litecoin (LTC), launched in 2011, was created by a former Google engineer and had a market cap of $10.1 billion. 

Binance Coin (BNB) can is used as a payment method, a utility token to pay for fees on the Binance exchange, or to purchase either Cryptocurrency. The Binance exchange founded by Changpeng Zhao and the exchange is one of the most widely used exchanges globally based on trading volumes. Launched in 2017 at 0.11 US cents it now trades at $254.

Qoin is a new digital currency that travels on the Qoin Blockchain and built on the Quorum Platform. Quorum is a JP Morgan and Microsoft partnership initiative.

Qoin is Australian (Gold Coast) based and works not only as a digital token but also as a merchant directory. Qoin is used to offset everyday business and lifestyle expenses by improving cash flow. Qoins owners are the original owners of Barter Card and have used thirty years of experience to produce an alternative currency. 

Qoin commenced in April 2020 at 15 Australian cents. Today it is sitting around $8.30 with 35,000 merchants. Qoin has a planned rollout of launching in the UK, Singapore and South Africa (they are already in New Zealand), and by the end of 2021, they will have launched the platform in Thailand, Switzerland, Canada, USA, Middle East and South Korea.