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      "body": "Thanks",
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      "body": "Hello welcome to Steemit world! \n I'm @steem.history, who is steem witness. \n This is a recommended post for you.[Newcomers Guide](https://steemitdev.com/guide/@steemitblog/steemit-a-guide-for-newcomers) and [The Complete Steemit Etiquette Guide (Revision 2.0)](https://steemit.com/steem/@steem.history/the-complete-steemit-etiquette-guide-revision-20-homage-1598425779) and, recommended community [Newcomers Community](https://steemit.com/trending/hive-172186) \n I wish you luck to your steemit activities.<center> \n \n \n https://cdn.steemitimages.com/DQmXHwdcNs5VPcBft1iSosPdHLpBNBfjuG84g3ffWhMw5JQ/image.png \n <sub>(The bots avatar has been created using https://robohash.org/)</sub> \n @steem.history \n \n ### My witness activity \n - [My aspiration for STEEM witness](https://steemit.com/hive-185836/@steem.history/my-aspiration-for-steem-witness-1601280729) \n - Provides information on Steem.  \n [Reference](https://steemit.com/trending/hive-130095) \n - Supporting the Steem project. \n [SPUD4STEEM project](https://steemit.com/trending/spud4steem) \n - Supporting the community. \n [Newcomers Community](https://steemit.com/trending/hive-172186),[Steem Sri Lanka](https://steemit.com/trending/hive-133716) ,[WORLD OF XPILAR](https://steemit.com/trending/hive-185836), [GLOBAL STEEM](https://steemit.com/trending/hive-145160), [Scouts](https://steemit.com/trending/hive-181136), [Latino Community](https://steemit.com/trending/hive-188619) \n \n ### My featured posts \n - [The Complete Steemit Etiquette Guide (Revision 2.0) -Homage](https://steemit.com/steem/@steem.history/the-complete-steemit-etiquette-guide-revision-20-homage-1598425779) \n \n [![image.png](https://cdn.steemitimages.com/DQmd7of2TpLGqvckkrReWahnkxMWH6eMg5upXesfsujDCnW/image.png)](https://steemlogin.com/sign/account-witness-vote?witness=steem.history&amp;approve=1) \n <sub>please click it!</sub> \n \n ![image.png](https://cdn.steemitimages.com/DQmWDnFh7Kcgj2gdPc5RgG9Cezc4Bapq8sQQJvrkxR8rx5z/image.png) \n <sub>(Go to https://steemit.com/~witnesses and type fbslo at the bottom of the page)</sub> \n \n </center>",
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      "parent_permlink": "cryptocrypto",
      "author": "livyblog",
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      "title": "Crypto World : Understanding Crypto Currency",
      "body": "What is Crypto Currency?\n\n![image.png](https://cdn.steemitimages.com/DQmTCKjaTpudAYWjK8BDyJFyGQnasvHEJqpWvJHzmZwJWho/image.png)\n\n\nCrypto currencies are similar to regular physical currencies exists in the market like INR, USD, EUR etc. Crypto currencies are in the Digital form. \n\nHow it works\n\nBefore explaining how Crypto currency works, let's understand how physical currency works.\n\t\nHow Physical Currencies works\n\nI will explain here with an example. Assume one account holder name \"Prashant\" wanted to transfer money to another account holder \"Deepak\" ( who has an account in another Bank),  below steps to be performed.\n\n1. Prashant will deposit money to his Bank\n2. Prashant's bank will transfer money to central bank ( Clearing system)\n3. Central bank will transfer money to Deepak's Bank ( through clearing system)\n4. Deepak's bank will transfer money to Deepak's account\n\n\n![image.png](https://cdn.steemitimages.com/DQmcyUFg5rUWwfUmJqtsPNookBFD5RSVYudwW5jU8YWwKgo/image.png)\n\nAdvantages \n1. Central bank regulates all transactions and hence there is very limited scope for any one to break rules and do \n     transactions ( e.g. Terrorist financing or anti money laundering)  \n\nDisadvantages \n\n1.  In above process, both Prashant and Deepak are exposed to their bank and central bank. You don't have privacy for \n      your balances or transactions. It is easy to hack as all bank account details stored on one server ( central server) \n\n2.  It is easy to hack as all bank account details stored on one server ( central server) \n\nHow Crypto Currencies works \n\nUnder Crypto network, as per below flow diagram, sender ( in our example -Prashant) can directly transfer money to Recipient ( Deepak) without any central authority in between.  \n\n\n![image.png](https://cdn.steemitimages.com/DQmVcqjUuuvhEK7UTVy7sj1ZFy7DEbS3RYb7dwxyYu3Fduu/image.png)\n\nAdvantages \n1. No Central regulatory involved, and hence full power is in account holder hand. You can be your bank. You don't need \n     bank to define policies, you can work as a bank.  \n2. It is very strong in terms of security, as if some one wants to heck or change transactions, they need to updated \n     transactions in all computers exists in the network.  \n\nDisadvantages \n1.  There is no central regulatory, hence it could be possible that bad actors could leverage crypto for terrorist financing or Hawala money transfer.  \n2.  It require a huge computational power as every transaction to be updated in all computers exists in network. \n\n\nWhy Crypto has a future\n\n1.  Earlier days, usually Gold Prices changes with Inflation, however, in recent time, when Inflation went high, Gold \n     prices went down or stable. Hence slowly Gold Investor are losing faith in Gold.\n\n2.  Long back, Government to pledge Gold to print Physical Currencies. However, from late 19th Century, Governments \n      started printing based on the economical parameter of their countries. Many a times government prints currencies to \n      get a political gains ( e.g. In Pandemic, US government started printing huge money). This could be resulted in record \n      level inflation, over consumptions and huge impact on Environment. \n\n3.  Crypto Currencies are valued based on what they do. E.g. Bit Coin (BTC) which is running on decentralized network \n      where it is close to impossible to change any transaction.  \n\n4.  Many Investors want to keep their investments & transactions private which can only possible through Crypto.  \n\nWhy Crypto Currencies have huge Volatility \n\n1. Many people Investing in Crypto doesn't have thorough knowledge about how Crypto Currencies & Underlying \n    Technology works. Hence many a time, they rely on market news or roomers and take decisions which some time \n    results into market crash.\n\n2.  Still Crypto investment are in very initial phase. Once many people starts learning and investing into Crypto, Market \n      would be stable.  \n\nWhich Crypto to buy\n\n1.   As we have many Currencies & Stocks in the market, similar way, many crypto currencies are exists in the market.  \n\n2.   Before Investing in any crypto currency, it require thorough research. In my next blog, will share details on different \n       crypto currencies and their back ground. \n\n3.   If you are new to the crypto, take top 200 crypto currencies by market cap and choose from that. \n\n4.   If you are new and don't want to take big Risk, than Invest and hold for some time instead of actively trading",
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