Cryptocurrency – What is it and which is the Best Coin to Mine?
Digital currency or cryptocurrency is a new alternative to money; it’s an exchangeable digital asset. It’s called cryptocurrency because of the use of cryptography in every aspect of it. The attempt to develop digital money started during the 90’s tech boom. However, digital currency came in public awareness after 2009, with the development of bitcoin.
Explanation of cryptocurrency
One essential feature about cryptocurrency – it uses cryptography to secure and verify transactions along with creating new units. Mining is also a vital aspect of this digital asset and investors often try to find the best coin to mine.
Essential factors in cryptocurrency:
- Completely digital existence –
A cryptocurrency must entirely exist on computers, and it should not involve physical objects like coins and notes for its transaction.
- Decentralised authentication –
The use of a centralised server or computer to validate or verify transactions is not acceptable in cryptocurrency. It’s a peer to peer electronic cash, where every computer in the network serves as a verifier.
- No third party –
All transactions take place directly between two people. Unlike the present system of asset exchange, there’s no trusted third party like PayPal in cryptocurrency.
- Globally useable –
In the present economic system, countries use fiat money. The factor on which a fiat currency’s value depends on is not global. Hence, sending money around the world becomes difficult. Cryptocurrencies don’t have such limitations, as their value isn’t based on local resources like metal, gold or oil.
Mining in cryptocurrency
Mining is the transaction process that includes verification and is added to the public digital ledger. Every transaction requires the bitcoin miner to validate the authenticity of the information. With the increasing popularity of these currencies, many people are asking questions concerning the best coin to mine.
Best cryptocurrency to mine –
The advantage of Bytecoin is its ASIC resistant so one can mine it with the use of simple PC. Mining byte doesn’t require using expensive hardware like ASIC. This altcoin is popular as the “totally anonymous cryptocurrency”.
A simple CPU or a GPU is enough for mining this coin. Zcash was from Blockchain algorithm but offers more anonymity. Its possible to make transactions without revealing wallet balance to other miners. Furthermore, the Zcash is beginner friendly that makes it top the best coin to mine list.
Cryptocurrency is gaining popularity and businesses with high-value transactions are taking an interest in it owing to its decentralised nature. Companies like Overstock have overhauled their business to shift to cryptocurrency.