Index IntroductionAdvantages and DisadvantagesBitcoin MiningIntroductionA cryptocurrency is a digital asset in which encryption techniques are used to regulate the generation of units of currency designed to function as a medium of exchange that uses cryptography to protect its transactions, check the creation of additional units, verify that the transfer of funds is its organic nature; it is not issued by any central authority. Well, the nature of cryptocurrency transactions makes them suitable for a variety of criminal activities, such as money laundering and tax evasion…! Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay The first cryptocurrency to capture the public imagination was Bitcoin, launched in 2009 by an individual or group known by the pseudonym Satoshi Nakamoto. As of September 2015, there were over 14.6 million bitcoins in circulation with a total market value of $3.4 billion. The success of Bitcoin has spawned a number of competing cryptocurrencies, such as Litecoin, Namecoin, and PPCoin.Advantages and DisadvantagesAdvantages:Cryptocurrencies make it easier to transfer funds between two parties in a transaction.These transfers are facilitated through the use of public keys and private (encryption and description) for security reasons. These fund transfers are made with minimal processing fees, allowing users to avoid the high fees charged by most banks and financial institutions for wire transfers. Bitcoin is the blockchain used to store an online record of all transactions using bitcoin, providing a limited threat from hackers. Block chain that has important uses in technologies. Transaction costs make payment processing more efficient. Prices are based on supply and demand. Cryptocurrencies are not exposed to the threat of hacking. More transportable than hard metals and is outside the influence of central banks and governments. You do not need to share your identity, location or transaction details. Once the payment is made, you cannot do a chargeback. You are the master of your money. You can keep it in your wallet and use it as per your wish. There is no third party involved such as a bank. When you talk about transactions using cryptocurrencies, there are no limits. You may be in another part of the world. Making payments using cryptocurrency is very simple. Con: Cryptocurrencies are relatively new and have a learning curve. People end up investing without proper knowledge and lose money. People are not aware of how to use cryptocurrency and thus open themselves up to hackers. Not many websites and businesses accept digital currencies yet. Very few countries have legalized the use of cryptocurrencies. There is a possibility of losing your wallet. If you have stored money in the form of digital currency on your phone or computer, you had better remember the password. If you mistakenly pay someone using cryptocurrency, in that case it is not possible to get a refund of the amount paid. Bitcoin Mining The Bitcoin network witnesses a large amount of transaction activity. Keeping a record of these transactions helps users track what was paid and by whom. Transactions made during a given period of time are recorded in a file called a block. Bitcoin and other cryptocurrencies that use Blockchain Proof of Work are maintained through a process called Mining. In this system, the miners, the computers running the client software of the.