What is Crypto Currency?
Cryptocurrency is a general definition of digital and virtual currencies that use a high level of encryption as a security procedure. The English original is the concept of ”cryptocurrency“, which is formed by the combination of the words ”crypto“ and ”currency". As a general usage, all “cryptocurrencies" traded on the market are called cryptocurrencies in Turkish, and they can also be defined as crypto values in some forms of use. The main reason for this is that some “cryptocurrencies” may be “token” that enable certain technologies to work, that is, fuels, while others have different functions, for example, “token” that function as a stock or pre-organization funding. One of the reasons why it is called value in some uses is that some “cryptocurrencies” are considered commodities, that is, as an object of trade.
Crypto coins have no value due to the value of precious metals such as gold, silver, or the economic powers of states such as traditional coins. The value of crypto coins is caused by the fact that the users who hold it adopt these coins as a means of exchange or consider them as a commodity. Its value is determined by the conditions of supply and demand in the market on an instantaneous basis, just like in other currencies or commodities. Interesting in this regard are crypto coins that can be mined digitally. Here, a mining model similar to gold is applied digitally. In this sense, crypto coins are divided into two types, which can be mined (mineable) and non-mineable (not mineable).
Cryptocurrencies work on the Internet network, they work as spelling automations based on various different infrastructures. They are not affiliated to any central authority or intermediary institution and are assets that are not regulated by the central bank, etc., and operate on the principle of a completely libertarian monetary policy. They are considered a virtual currency and express a number of numerical equivalents within the system to which they are connected. Crypto coins can only be placed in a virtual wallet using passwords, and they can be transferred to another wallet by these passwords again. For this reason, they are defined by the word crypto, which means encryption. With cryptocurrencies, people or institutions can spend or transfer money just like they do with real money.
In terms of the production of crypto coins, they are divided into two groups as “Mineable” and “Nonminerable”, that is, they can be mined and cannot be done.