What is cryptocurrency? How is crypto money produced? As a digital economist, we searched for the answers to the questions for you. It is a fully digital, encrypted virtual currency that can be used for cryptocurrency exchange transactions. For some people, this is the currency of the future. Today, cryptocurrency has become a phenomenon that many people have heard of, and it has attracted great attention from heads of state and large companies. Cryptography is used to verify and securely execute swap transactions.
There is no physical equivalent. In the beginning, money spent and transferred with debit and credit cards was also virtual currency because only system data were exchanged with these transactions. Crypto coins have the same working principle. However, there are systems that are not managed by any authority or government, i.e. decentralized systems, which makes the system more secure.
How is crypto money produced?
The production of the crypto currency is carried out on a distributed system like themselves. Therefore it is user-based. Cryptocurrencies have production restrictions, so the more cryptocurrencies are produced, the more difficult the transactions that need to be resolved to create cryptocurrencies.
The production process is completed with mining, even if physical mining is not performed, operations based on solving mathematical problems will be carried out. Therefore, if you have processor capabilities and an Internet connection, you can perform mining tasks without being assigned by others.