Welcome to the Part 2 of the series 'Cryptocurrency'. It has been late because of some errors, where all I typed was lost.
In this post, I will convince you that it is the best type of currency for hackers. That means I will cover the following topics in this post- Anonymity, Decentralisation and a few others that I'm not disclosing now.
Okay, this does not apply to all of the cryptocurrencies, but then they'd be no good. I hope you remember the case of Liberty Reserve, or have heard about it. It was centralised, and that caused losses of billions of dollars and euros.
But decentralised currencies, on the other hand, have no one to control them. Anyone can download and run entire piece of a software called Blockchain, a public record of every transaction and hash that has been in that particular cryptocurrency. Blockchain will be further explained in the 4th part in the series.
So, that means, whatever you do, there is no central power that has access to all your data and is responsible for it. So a decentralised currency can not be shut down by targeting a particular individual/group/organization. Consider it like metals. You can't kidnap/arrest a single person/group to shut down to economy of metals.
So as long as people support it, it will thrive.
It's a masterpiece of programming that something decentralised is also anonymous. And I've also noticed it to be one of the most asked questions in cryptocurrency, that how it is anonymous whereas the Blockchain is available publicly.
Try this: 1HRvXFADwKZWXdbrEw6Vf7SVTqhLztNGzo . This is one of my bitcoin addresses. You won't find any details associated with it.
That's what makes the users anonymous. Anybody can have any number of addresses (there is a limit, but I doubt it to be reached anytime in the life of a cryptocurrency), and without any details, you will have a hard time finding the person behind a hash.
Some cryptocurrrencies aim to be truly anonymous, like Dash (formerly Darkcoin), but I haven't seen it's registrations open for quite a while.
The transaction fees are almost negligible. Many times they are even free, depending on the cryptocurrency you choose.
Each of them has different rules for this, but they still have considerably cheaper transactions than banks or other forms of digitized fiat currencies.
That's because central fiat currency authorities have to spend a lot to remain in existence and to transact the money, whereas anybody, even you, can create a cryptocurrency on your own and get it to work with a public blockchain. In fact, as we speak, there are already 1000s of cryptocurrencies in existence, like the political parties in India. You have A LOT of them, but VERY few manage to win.
It requires a very specific randomly generated private key to access your cryptocurrency wallet. And breaking it by a brute force attack...I wouldn't recommend that. You're MUCH better off buying lottery tickets.
Unless you give away the passwords or keys, no one can access your wallet. It's protected by strong cryptography.
You can try any wallet you like from blockchain of, say, bitcoin. Before you'd gain access, you'll already have lost a lot of money and time.
So, that's enough to discourage anyone from trying to brute force into a blockchain. And there are no discovered exploits to it so far.
It is extremely easy to use. All you need is some balance in your wallet, and the wallet address of the receiver, which can be as simple as scanning a QR code, and you can send any amount you want right away.
The person can convert them anytime to fiat currencies according to the price in market, or keep them as they are.
In fact, another way round is also as simple as clicking a button to send bitcoins, when the receiver has a merchant account on a crypto payment gateway or similar, like GoUrl(My affiliate ID would be DEV160G5A49E9EA0362CD5G1569151099 ).
I wouldn't recommend that, but if you are to boast about your skills or knowledge, then it is a great tool to keep in your arsenal.
And it won't feel good if the person you're talking to asks you something very simple about it and you have no answer.
Time has come for me to bid my farewell. This was as much as I'm telling in the meantime. I hope you liked the post. This was about why should you use cryptocurrencies and how they're a marvellous masterpiece of programming and art.
The next post in the series will be about why you should NOT use cryptocurrencies, because incomplete knowledge is more dangerous than no knowledge. And you've already entered now.