Frequently Asked Question
#1 : What is Cryptocurrency?
Answer : A cryptocurrency (or crypto currency) is digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
#2 : Do you update Live Rates on Daily Basis?
Answer : Yes we try our best to update currencies rates on Daily Basis, We will keep letting you know live rates of Currencies.
#3 : How do you know if a coin will exist or not in the future?
Answer : No way to know for sure which is why you need to focus on utility and how it can benefit people as a whole.
#4 : What if a government bans it?
Answer : If governments ban a coin, let’s say Bitcoin, for example, it’s highly unlikely that all governments will ban it. A ban impacts it’s accessibility for a localized group of people but banning what the people want is generally temporary or unenforceable. Look at weed, alcohol, and gold all of these things have been banned in the US in one way or another and all of them have been unbanned because the people wanted it, the people will always outnumber central authorities. As more government currencies fail or governments in general fail which I think history proves is largely inevitable, more people will wake up to the utility of separating money from state by way of holding and using decentralized currencies. The failure of a single government or centralized currency will not kill decentralized ones and as central currencies and governments collapse around the world we’ve seen the people in those economies start to understand this more and in turn, put their wealth into digital currency any way they can.
#5 : What gives cryptocurrency value?
Answer : What gives anything value is its utility and the consensus hallucination where people merely say it has value. That applies to gold, oil, US dollars, bitcoins, Pokemon cards, pet rocks, diamonds, and anything else you can think of all of which can be devalued by the introduction of new supply. The utility of a medium of exchange or store of value is superior when it’s digital since its efficiency, security, settlement time, etc are all enhanced and because utility past merely being a medium of exchange can be programmed in like with ethereum smart contracts. The US dollar is backed by the faith in the US government and nothing else, as a people, we need to trade. So what ultimately makes decentralized money less valuable than a government-backed currency if not merely it’s current rate of adoption and peoples faith in its ability to survive? Considering the supply of most cryptocurrency can be verified to be rare and immune to the introduction of new supply I’d say it can have a more lasting value than most things perhaps excluding human life and time itself although both of those things seem to have a price we put on them as well.
#6 : How does mining work?
Answer : Since the economics differ from each coin it’s best to look at this generally speaking. Mining is a means to verify transactions done on a decentralized network and introduce new coins into the ecosystem. When all the coins that will ever exist are all mined, mining will likely simply be for verifying transactions. With mining, a miner has a cost of electricity they have to spend to solve a “mathematical problem” that is checked by other participants in the network to see if it’s correct or not. If it’s found to be incorrect the work that miner has done is eventually considered invalid and they are given no reward for their work, if it’s found to be valid they are rewarded with newly minted coins and some of the transaction fees from the network. Since there is an economic cost to mining this is an incentive to have participants in the network be honest and without it they could get away with dishonest conduct such as double spending or minting an arbitrary amount of coins for their own profit without earning it.