What is Cryptocurrency?
Cryptocurrency is a decentralised digital currency or money. The paper money we are used to is called “fiat” money. Before “fiat” mankind engaged in trade by barter. Sea shells (cowries), gold coins, oils, etc., were various forms of money that was used for exchange for goods and services in the past.
Paper money was originally created to solve the problem of carrying bulk gold coins about by merchants who move from place to place in the engagement of their businesses. Paper money was introduced as a promissory note backed by gold, which implied that for every dollar bill that was printed there was an equivalent amount of gold backing it. In 1971, President Richard Nixon suspended the backing of the dollar with gold. Hence, paper money failed to be a store of value, which is the true meaning of money.
In 2009, Satoshi Nakamoto invented the first Cryptocurrency called the bitcoin.
Bitcoin is the currency of the Internet: a distributed, worldwide, decentralized digital money. Unlike traditional currencies such as dollars, bitcoins are issued and managed without any central authority whatsoever: there is no government, company, or bank in charge of Bitcoin. As such, it is more resistant to wild inflation and corrupt banks.