Can I Create a Bank Without Actual Money…!!!

My answer is straightforward yes. How? Let’s see. Firstly, let’s go through some basics.

How the banks maintain currency transactions? Whenever a transaction is made by an individual or by an entity, bank database briefly lock access while the transaction is made, update the other side and then re-open the access. A straightforward way for non-corruptible transactions. Similarly, Blockchain (Way by which Cryptocurrency works) works. The Blockchain is the brainchild of Satoshi Nakamoto (An unknown individual or a group). Blockchain is a digital ledger of economic transactions that can be used for financial as well as virtually any kind of transactions. It is spread on nodes of computers or a peer to peer network. Peer to peer allows users to access information where peers are end user computers and servers. A step by step procedure for such transactions is as:

·         Someone requests a transaction

·         The requested transaction is broadcast to P2P network nodes

·         Network of nodes validates the transaction and user’s status using known algorithms, a verified transaction can involve cryptocurrency or other information

·         Transaction is complete, and the new block is then added to the existing blockchain that is permanent and unalterable

All currencies issued by central bank are centralized and controlled by the respective authority. Cryptocurrency is decentralized one. There are lots available in market… Bitcoin, Ethereum, Ripple, Litecoin, Dash, Waves… (Create your’s own and name it accordingly).

One thing common in cryptocurrencies, limited supply of tokens. Means, Supply decreases in time and will reach its final numbers in near future. As per estimates Bitcoin will reach its final number in around 2140.

So, one benefit is here by using cryptocurrencies: No intervention of central bank i.e no manipulation in available currency to control inflation or deflation (Guess disadvantages).

Cryptocurrencies enjoying market cap of over $200 billion. For more information on trading values of most of the cryptocurrencies (There are more than 700) Visit Page.

Cryptocurrency’s transactions are done with the help of Cryptocurrency Wallets (A Software Program). It is cryptographically secure wallet used to store, send and receive digital currencies. Most Digital currencies have an official wallet or recommended third party wallets. As already told above, cryptocurrencies don’t get stored in specific location or in physical form. All exist as a record in a blockchain.

How the value is defined for Cryptocurrency?

·         Supply/demand

·         Price of Bitcoin

·         Media

·         Investors

·         Scams

·         Legal and Governmental issues

·         … and many more

Form the list above it can easily be assumed, what driving the price of cryptocurrencies.

One holding cryptocurrency, it’s the right time to sell. When an asset rises so fast it’s a near certainty that it will come back down. Markets are irrational.

Cryptocurrencies provide a level of anonymity. This is the reason they are associated with illegal activities, particularly on dark web (Those who want to experience it – at their own risk, use Tor Browser). I’m not explaining on what activities such currencies are used in Dark Web.

Blockchain Technology has its advantages also. It has lots of applications associated with it. Some are: Sharing Economy, Governance, Supply Chain Auditing, Prediction markets, Safe Transactions and many more. For technology students, it’s advisable to study it hard as it is the future technology.

Will it replace cash?

 Value of Cryptocurrencies fluctuates so regularly that risk factor is very high. Moreover, governmental control over central currencies is key to regulations in many ways, and cryptocurrencies would operate with much less government preview. Which government or central bank want to lose the control of cash handling? Remember it, Cryptocurrencies are not approved by any of the governments. Means, they are illegal. Whatever the claims you found on the internet.

How to get it?

·         Look for ICO (Initial Coin Opening)

·         Get a Digital Wallet and buy your first coin

·         Mining (A very costlier affair)

Before investing go through this article.

Have you taken the heading of the article seriously? Let me explain how to create your own cryptocurrency. Those who are extremely good in programming, know cryptography logics can build their own digital currency around some community. Other way is provided by Ethereum (Without programming).

·         Find a community where you want to spread the word. Build a currency around them.

·         Start coding, which is generally based on the open source code of Bitcoin or Litecoin that is available on GitHub. To build your own features, you need to know about C++.

·         Now the time is for bringing miners onboard. Spread the word, so that people start mining it. Gain value in eyes of miners and gain their trust.

Wow, your own Cryptocurrency Wallet is Ready.