The cryptocurrency statement created by combining the words crypto and currency means crypto (encrypted) money. Crypto money; It refers to the virtual currency used by the internet, which is not connected to any central authority or intermediary institution. Crypto coins are named only because they can be removed and used from virtual wallets where they are placed using certain passwords. With crypto currencies, individuals or institutions can spend money just as they do with real money or accept money.
There are more than a thousand types of crypto money in the market today. Some of these coins are: Bitcoin. Ethereum, Ripple, Litecoin, Dash, Monero, Neo, Moisture. They are virtual only because they are registered in the computer system. In other words, these currencies are not physically available, such as the US dollar, like the euro.
Crypto coins do not have any value, such as precious metals, from the value of metals or from government-like money. Its value stems from the fact that its users accept it as an exchange tool or see it as a commodity. Its value is determined by the conditions of supply and demand in the market, just like in other currencies or commodities.
Crypto coins are the earliest and still the most common bitcoin. Bitcoin is limited to 21 million units. As of 13 November 2017 16.676. There are 850 Bitcoins circulating. According to this, there are 4.323.150 Bitcoins which can still be circulated. The new Bitcoins need a 16-digit password to be able to circulate. Solving this password requires very professional knowledge and technical equipment. The person who decodes the password earns 12.5 Bitcoins. Bitcoin system to pay a transaction using the process, or those who do not want to deal with the password Bitcoin selling internet sites can buy for money. Bitcoin’s dry is also determined on the market, according to supply and demand, just like the coins across the national currency. According to the November 1, 2017 exchange rate, 1 Bitcoin is US $ 6,200 (TL 23,932). As of the same date, the total market value of all crypto coins is around USD 195 billion. In order to make a comparison, it is worth to note that all cash in circulation is USD 31 trillion in USD and USD 1.5 trillion in cash circulating in the world.
The Blockcha; is a distributed database that provides encrypted transaction tracking. This distributed database, in which each information is recorded in blocks, with advanced encryption algorithms, is linked to each other, enabling the ability to process without being connected to a center. The Blockchain network is a system that keeps track of all money purchases. The most important feature of this system, rather than being kept in a single point, more than one place is to be held in the entire network. The reason for keeping records in more than one place is to increase the reliability of the recorded information. Even if one of the storage locations is lost, the information continues to be stored in other recording locations on the network. Where information is stored, a special encryption with the previous and the next block is in contact with. In this case, when the information is changed in one of the rings forming the chain, this information becomes incompatible with the previous records. In order to change a record, it is necessary to confirm the change in a few of the rings forming the chain. Information from a location cannot be accessed, managed, or routed by anyone until they reach the other party and the codes match and reveal this information.