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Common Questions Answered about Cryptocurrency

Cryptocurrency is any digital store of value that one can exchange for goods and services. This article strives to answer eight frequently asked questions about cryptocurrency in the most unbiased manner possible.

1. What Is the Purpose of Cryptocurrency?

Cryptocurrency was initially conceived as a way of as a virtual currency and alternative form of payment versus traditional banking. 

2. Are Cryptocurrencies safe?

Blockchain technology is often described as “hack-proof” because any hacker would need to modify all blocks simultaneously to ensure that the chain was in agreement.

3. What Determines the Price of Crypto Coins?

The price of cryptocurrency is not regulated by any centralized authority, meaning that market forces dictate prices daily.

4. What Do Transactions Look Like on the Blockchain?

Every transaction includes three critical pieces of information:  1. Input 2. Output 3. Amount.

5. How Does the Mining Process Work?

A hash function is a mathematical trick that takes data of any size, performs an operation on it, and outputs something of a fixed size.

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