Cryptocurrency and Crypto Exchange
We know the stock exchange, what is this Crypto Exchange?
We are seeing a lot of news about the crash of the FTX exchange.
The earliest exchange of money was through the barter system. This is where you have a bag of wheat and you want to buy a goat. Therefore, a bag of wheat is traded for a goat.
Then came coins, which are more convenient and easy to trade.
Then came currency in the form of paper. We have central banks that print them and distribute them as legal tender.
Then came the Internet, and we have new forms of money exchange like debit cards and credit cards.
Then came Bitcoin which is not a physical coin but a form of digital bits which are unique. This can be called “Cryptocurrency.” The first country to adopt Bitcoin as legal tender was El Salvador, people started trading these with itself and other currencies, and online crypto exchanges came in.
Below is the list of countries that accept cryptocurrency as legal tender.
Why it is invented? There are people who wanted an open-ended way of exchange of Money and services bypassing the govt regulations, multiple banks, and interest rates.
All the cryptocurrency is maintained by a ledger that gets replicated with the same data across multiple servers, and the ledger is the same across millions of computers across the world, this helps the integrity of your crypto account.
As people started buying Crypto currency with regular currency, the value of cryptocurrency started increasing, and this way you have a crypto exchange where people trade crypto currency.
Watch the below video which gives a good primer on this subject.