It all began with the barter system and almost ever since that, change has been the only constant. People understood the problem of dealing in heavy coins, and soon came the concept of banknotes, for the first time in Sweden in 1661. But this is 2021, and everyone is going gaga over the concept of cryptocurrencies, especially Bitcoins. The economy, by continuously evolving, gave rise to something that is totally decentralized in nature and holds the potential to become the new age currency, which unlike conventional money, is totally digital in nature. Delve into this article to know more about cryptocurrency. You can also take the reference from the Bitcoin Union to clarify your doubt as per your requirements.
What cryptocurrency is and it’s working mechanism?
Cryptocurrency is like a new digital asset that is slowly becoming a medium of transaction all-over the world. It is owned in the form of digital coins, the ledger of which is stored in a niche of computer networks called blockchain. It is completely decentralized in nature, which means that there is no existence of an authority that is looking over your transactions all the time. The process is transparent as these ledgers are stored in 1mb blocks which can be viewed by anyone for verification purposes. There is a vast number of cryptocurrencies available, the most famous and old, being Bitcoin, the first cryptocurrency ever, that was released in 2009.
Cryptocurrency – the upcoming new world currency
Digital currencies don’t have central control. Quite different from the age-old idea of conventional money, cryptocurrency can be referred to as the future of financial transactions. It is essentially not physical in nature, which makes it extra preferable. Bitcoin has the highest value amongst all the alternative cryptocurrencies currently in the market. It is not issued by any bank or organization but is created by a process called mining. On online trading platforms, bitcoins are traded and that is how the market price of this particular cryptocurrency is determined. In 2010, one of the brains behind Bitcoin called Hal Finney, claimed that in the future, Bitcoins may become very important for financial transactions and it may very well emerge as a financial reserve for banks, the same way gold was important for banking in the 19th Century Europe. It can be rightly called to be the upcoming new world currency as along with many establishments accepting cryptocurrency, there is also a large number of people preferring it. Hence, we can definitely put together all of these and also add a few points to say that:
- The collapse of the existing monetary system in the present times sees a new form of money in a welcoming manner.
- True that cryptocurrency is here to stay, it is also important to mention that a change in the mode of monetary transaction is not an overnight business.
- Through time, cryptocurrencies have become more preferable than before and there are still further scopes of bettering the entire experience.
- The value of cryptocurrencies has leveled up manyfold and there is no stopping it, not at least in the near future.
Cryptocurrency against the backdrop of realities
Cryptocurrency at a time when existing bank policies are rigid
We are all aware that transactions under a bank are seldom smooth. A large number of personal data exchange takes place every time you want to transact money. On top of that, certain transactions take a bit too much time to get completed. But in the case of crypto, transactions are handled in full anonymity, and they are pretty fast as well.
Cryptocurrency against its worldwide popularity
There is no doubt that cryptocurrency has become famous. An increasing number of service providers are nowadays compatible with crypto. Lately, it is also welcomed by countries like China, India and Russia.
Cryptocurrency at a time of looming financial crisis
The economy is the most unstable now, with unemployment at its peak. In such an environment of the financial crisis, Crypto seeming to be a trustable option is natural.
Cryptocurrencies, if developed in the right manner, can really turn out to be the next world currency and that time should not be very far away.