What is Crypto currency? What will be its Future?
 |
| Crypto Currency |
According to Merriam-Webster dictionary, "Crypto currency is "any form of currency that only exists digitally, that usually has no central issuing or regulating authority but instead uses a decentralized system to record transactions and manage the issuance of new units,and that relies on cryptography to prevent counterfeiting and fraudulent transaction."
Crypto
currency is a medium of exchange value (just like ordinary money) that
exists in the digital world and relies on encryption, which makes transactions
secure. Some examples of crypto currency include Bitcoin, Litecoin,
Ethereum
and Monero.
It is
an alternative form of payment and can be used instead of cash, credit or debit
cards and cheque. It allows you to send directly to other people without third
party mediums such as banks. In other words, crypto currencies are currencies
that exists in a virtual world. The record of all the transactions that taking
place is kept by the crypto currencies. The transactions are bundled into
blocks, which are cryptographically signed. The client or the miner doing this
signing, gets some of the virtual currency as a reward for calculating the
cryptographic signature.
- Where can you use it?
In crypto currencies payment can only be made up to the amount the person owns virtually. Hence, the merchants or the businessman do not have to worry about the payment frauds or the invalid cheques. You can easily send money from one country to another without incurring hefty international charges. All your transactions taking place virtually are secured by cryptography. Hence, not to worry about the theft. Nowadays, many online sites and shops are accepting payment in the form of crypto currencies. This is leading to increase in confidence about crypto currency in the minds of people.
- How can you use it?
 |
| Digital Wallet on a Smartphone |
Crypto currencies are stored in a Digital wallet you keep in the cloud or
offline on a PC and can be sent to someone via a computer or a mobile device
like a Smartphone. For example in case of Bitcoin, it is stored in the Bitcoin
wallet. Bitcoin wallet is a software program where Bit coins are
stored. To be technically accurate, Bit coins are not stored anywhere; there is
a private key (secret number) for every Bitcoin address that is saved in the
Bitcoin wallet of the person who owns the balance.
- The Bitcoin Bubble Burst
 |
| The Bitcoin Bubble Burst |
When we talk about crypto currencies, the first thing comes into our minds is
Bitcoin. It is one of the most famous crypto currency. Its value had risen up
to $20,000 last December 2017. Its
rise led to crypto currencies getting more attention and large amount of people
investing in it. The Bitcoin price as of today is $3421.58. In just span of one year, the price came down this level.
- Conclusion
Crypto Currency is the most secure way of payment. These crypto currencies
have full potential to exchange our traditional currency as a method of payment. Due to their political independence and essentially impenetrable data
security, crypto currency users enjoy benefits not available to users of
traditional fiat currencies, such as the U.S. dollar, and the financial systems
that those currencies support.
For instance, whereas a government can easily freeze or even seize a bank account located in its jurisdiction, it’s very difficult for it to do the same with funds held in crypto currency. This leads to frauds and money laundering and even tax evasion. The crypto currency ecosystem is like a bubble and can burst anytime.This leads to decrease in confidence in the minds of investors. After the bitcoin burst, things have come to a standstill.
But still many observers look at crypto currencies as hope that a currency can exist that preserves value, facilitates exchange, is more transportable than hard metals, and is outside the influence of central banks and governments. In future we can see that crypto currency is going to replace traditional currency and the technology is going to create a huge impact.
For instance, whereas a government can easily freeze or even seize a bank account located in its jurisdiction, it’s very difficult for it to do the same with funds held in crypto currency. This leads to frauds and money laundering and even tax evasion. The crypto currency ecosystem is like a bubble and can burst anytime.This leads to decrease in confidence in the minds of investors. After the bitcoin burst, things have come to a standstill.
But still many observers look at crypto currencies as hope that a currency can exist that preserves value, facilitates exchange, is more transportable than hard metals, and is outside the influence of central banks and governments. In future we can see that crypto currency is going to replace traditional currency and the technology is going to create a huge impact.
Thank
you for reading and have a nice Day.
Comments
Post a Comment