What is cryptocurrency?
Cryptocurrency is digital money or virtual money. It acts as a medium of exchange. These are digital assets in the forms of coins that translate into monetary value. Cryptocurrencies like any other form of money, lets you buy goods and services and has a trade market of its own. Like forms of currency, the crypto market also has different variants like Bitcoin, Ethereum, etc. These variants have different values and these values are driven by market forces. This is a digital form of money and it uses cryptography to give with safer and secure online transactions. This form of currency works on a technology known as the blockchain. It helps in online transactions, it is spread throughout many computers and is a decentralized form of technology.
There are more than 2000 variations of cryptocurrency in the market. The estimated value of the market is 200 billion dollars. It is seen as a turning point in the history of commerce and economics. In the coming years, the value could rise to 5 coins to $5 million. Many call it a game-changer for the world. The most popular currency is bitcoin, with an estimated value of around 130 billion dollars. Cryptocurrency is seen as the technology of the future. There are many reasons why it is so popular and appealing.
- It is seen as a valuable asset. Many studies and researches show that it is to rise by leaps and bounds in the future. Hence, people are rushing to buy them at lower costs now, to reap benefits in the future.
- A lot of economic analysts argue that this form of money removes banks from the equation. That seems like a good thing because over time banks decrease the value of money itself, which gives way to inflation.
- Another appealing reason to support cryptocurrency is the technology it uses. Blockchain is decentralized and hence provides a safe way to transfer and trade money online, in comparison to other pathways or alternatives for transactions.
- It also provides more transparency in the transactions and hence gains the trust of the masses. A more transparent form of the global economy should be the way to move forward and hence it is seen as the currency of the future.
- It is also regarded as the evolutionary form of currency because it is a great way to move on from the classic paper notes and physical form of currency. It is more accurate and easy to track.
- A secure, transparent, traceable and easy to record system of money, reduces the chances for frauds and money laundering. It also makes it hard to hoard huge amounts of black money, which is always beneficial to the world economy.
- E-Commerce will become smoother, due to lower transactions. It will attract more vendors as well as customers, due to the increased profit margin. The more direct contact between investors, seller and buyer create a more stable market. Without brokers involved, there is more profit that can be made for all the parties involved.
The World is moving at a fast pace. We need to move towards more innovative solutions. Cryptocurrency can revolutionize the entire world and create a more stable market. People can reap more profits and a smoother, transparent, and efficient market that the world needs. Investing in this market can be very beneficial. We can’t predict all of the impacts, but majority studies show and indicate that it will have a positive impact. People looking for a good investment, cryptocurrency is a great option and people with good analysis and the right information should go for it.