We all have heard about these terms in some way or the other. You would have heard about the rise in the value of bitcoins. You would have heard how people became millionaires with the help of bitcoins and how some other cryptocurrencies broke people’s Bank accounts. But today, I will make it clear how they all are connected.
First, let’s try to understand how these terms are connected quickly.
See the Blockchain is a technology on which cryptocurrencies work. And bitcoin is a type of cryptocurrency.
Blockchain > Crypto currencies > Bitcoin.
Now I will explain everything one by one.
What is Blockchain?
In laymen’s terms, Blockchain is a kind of a digital book that updates when a transaction happens. That transaction can be anything such as fund transfer, settling of trade e.t.c. What is interesting about it is that Blockchain is a very secure technology. That’s why it can be relied upon in various use cases. Cryptocurrencies are just one of the ways Blockchain can be used. NFTs also use Blockchain technology.
To know more about NFT check out our other article.
What are cryptocurrencies?
Cryptocurrency is a type of virtual/digital currency. It is based on Blockchain, so it’s very secure. Another very important feature of cryptocurrencies is that it is decentralized. It is not controlled by any Centralised authority which also makes it easy to do illegal trade. Hackers, illegal weapons, and drugs supplier have started using this, as it is hard to track people down who are using Cryptocurrencies.
What is Bitcoin?
Bitcoin was launched in 2009. It is always associated with a name, Satoshi Nakamoto, but who created bitcoin is still a mystery. Bitcoin is a type of Cryptocurrency which is decentralized. Even after not being a legal tender, it has a very high value in the market. In fact, Bitcoin is the world’s largest cryptocurrency by market capitalization.