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What is it?
It has been recently introduced in 2008 with the advent of Bitcoin. Right now, many say (we also believe in it) that it is here to stay and it's not going to go.
If you actually look into the economic structures in most countries, most of them will operate with a central bank and/or Federal Reserve Central Bank. This is where most of the decisions and monetary transactions go through.
With the advent of these currencies, the whole idea was to decentralize it so that it does not go through one centralized medium.
What are they made up of?
They are made from blockchain technology. All of these Crypto Currencies are made from this type of Technology. The good thing about it is that it is basically an Incorruptible Decentralized Digital Ledger of economic transactions. It is not only financial but anything of value. It means that the whole idea of it is that all transactions can be physically seen and is transparent, all at the same time. That is the whole basis of Digital Ledger.
Market size and Liquidity.
As I have mentioned in all the other videos, the smallest price increment that can happen in any economic transaction is what we already know by now, is a Penny (£0.01). This is in the UK, which is two decimal points. In other markets you can be also call it a Cent, like in the US market; and in China or India we can be different terminologies. However, the point remains the same because it's 0.01, two decimal places.
In the Crypto Currency Market, we call it Cents and that would be 0.01. It is similar to our usual transactions as it is correlated to the Dollar Market.
That brings us to the end of this module. On the Crypto Currency so we looked at what it is, the market size and liquidity, and the price increments.
Let us move on to the next Market.