Cryptocurrency and the block chain technology are fascinating. Someday soon, we will look back at today as the very beginning of a new world. I’ve been following crypto currency for years and have seen startups develop it into one of the hottest things on earth. It’s hard to believe that in ten years from now our daily lives will revolve around crypto currency.
Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Bitcoin is proving to be useful as a currency that functions outside the control of central banks.
Perhaps upon first glance, the idea of crypto currency seems a bit absurd and is not worth the time of day. However, the statistics are there to argue against dismissal. Recent reports estimate that over $300 billion dollars in crypto currency has been exchanged this year alone, and the CEO of Ripple has gone on record to predict that in 10 years, 95% of all global money transfers will be completed using crypto currency.
So what exactly are we talking about here? First, let’s go back to the beginning of money as we know it.
What is cryptocurrency?
Cryptocurrency is a form of digital money that is designed to be secure and, in many cases, anonymous. It is a currency that is created from computer code. Essentially, it is money that only exists in the online world.
A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation.
Most cryptocurrencies are designed to decrease in production over time like Bitcoin, which creates a market capitalization for them. This means that the value of these currencies will likely rise over time as long as more people continue to use them.
No central authority issues new money or tracks transactions made with cryptocurrencies, making it theoretically immune to government interference or manipulation.
Why is cryptocurrency world changing?
Cryptocurrencies have the potential to change the world. Here’s why:
1. Cryptocurrency is a new asset class.
2. It is the first truly global currency.
3. Its low-entry barrier will push financial inclusion.
4. Cryptocurrency is an uncensorable and trustless technology platform.
5. Cryptocurrency is a new way of storing and transferring value without trusted intermediaries.
6. Cryptocurrency has the potential to disrupt traditional finance, governance, and social systems around the world for decades to come.
Cryptocurrencies are revolutionary payment platforms that are changing the way we do business. The core innovation behind cryptocurrencies is decentralized transaction ledgers, called Blockchains.
Blockchains solve the problem of centralized trust in a way that no other technology has been able to achieve to date. This means that for the first time, developers and businesses can build solutions without having to trust each other or any third party service provider.
What advantages does crypto currency offer consumers?
The most valuable aspect of Bitcoin and other cryptocurrencies lies in their ability to make financial transactions quicker, easier, and cheaper for consumers.
The technology behind crypto currency has the potential to transform how we exchange money, pay for goods and services, and even think of property ownership. Blockchain technology is set to revolutionize the world economy.
Instantly transferable between parties, crypto currency can be transferred without going through a bank or clearing house. Banks are necessary in conventional transactions because they provide the record-keeping, processing, and online payment mechanisms.
Crypto currency gets around these intermediaries because of the blockchain ledger, which keeps a permanent and public record of all transactions using crypto currency.
With no need for central record keeping, crypto currency allows for anonymous and instantaneous transactions between any two parties anywhere in the world without additional fees or delay. Crypto currency effectively puts control back into the hands of individuals.
Security
Cryptocurrencies are used primarily online and are a digital asset designed to work as a medium of exchange. They use cryptography to secure and verify transactions as well as to control the creation of new units of a particular cryptocurrency.
Cryptocurrencies exist only as data and not as physical objects; you cannot actually hold a Bitcoin in your hand or keep Ethereum in your safe.
How to invest in cryptocurrency
Cryptocurrency is the future of money. It’s a way to securely store and transfer wealth without banks or the red tape.
The value of a cryptocurrency may be speculative as it depends on whether the market for a particular cryptocurrency will go up or down. This fluctuation can occur due to a variety of factors, including perceived value and interest rates.
Cryptocurrencies are typically not backed by any government entity, like the U.S. Treasury Department or Federal Reserve, and are not considered legal tender. However, cryptocurrencies may be subject to regulation from state and federal authorities and may be subject to taxes.
