Reiko Mäeorg

How Cryptocurrency Can Make You Rich: The Ultimate Guide

What is Cryptocurrency? Simply put, cryptocurrency is a digital, decentralized currency that is not issued by any government or central bank. Instead, it is created and held electronically in a virtual “wallet.” Cryptocurrency is “mined” using blockchain technology, with new coins created as a result of a computer solving complicated mathematical algorithms. This process is called “proof of work”, where a computer is able to solve the algorithm and create the next “block” in the blockchain, adding to the list of existing transactions. In this way, no government or central bank needs to print or approve cryptocurrency as a form of currency. Instead, it is produced by decentralized networks of computers around the world. The transaction process for cryptocurrency is extremely secure, as the entire blockchain ledger is available for public view, with each transaction recorded and verified. As data is held on a decentralized network, there is no centralized system that can be hacked and millions of records lost.