Oversimplified explanation of Cryptocurrency and Bitcoin
2008 recession caused due to bad mortgage investments by banks ,made many people loose their jobs and money.One among those was Satoshi Nakamoto. Not an actual Coin!!! Citizens trust the authority of government and banks to prevent fraud and bad investments . So,He decided to give a transaction system which would be alternative to centralized system of banks and government . Before 'fiat money' gold was considered to be the base for printing money. So, a country with more gold reserves would be rich and the country with less reserves would be poor. To avoid this FIAT MONEY was introduced. What is 'Fiat Money' Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity. Fiat in latin means "it shall be" . Government is in control of printing money .This means it is centralized. Paper `fiat` currencies have no intrinsic value and are used solely as means of payment. So...