Cryptocurrency is the catalyst of future currency. Cryptocurrencies are virtual currencies which are useful to transfer money virtually to another person. Without any delay and without having to use intermediaries or trusted third parties, e.g to verify that you have sent the money and the money is now no longer yours. In addition, it does it much faster at a fraction of the cost because it does away with unnecessary and expensive transaction fees.
It provides safety in a two fold way. The first is that it uses encryption technology.
The second way is to have a public ledger, where all the transactions are kept. The network of systems all linked together in this way is called the blockchain. Each cryptocurrency can have its own blockchain, although some are shared.
There are two ways of getting a Bitcoin. You can either buy one at the current value or you can mine it. Bitcoin is an operating system that allows people to securely transfer money over the internet.
It does this by replacing the function of a bank with a network of computers running the software that verifies and transfers the money. These systems, known as miners, maintain a global ledger of transactions. They use this to validate, verify and transfer money.
- No third party involvement
- Cryptocurrency make possible to be able to pay and receive money anywhere in the world at any given time
- Practically immune to any influence from the government, with minimum processing fees
- Payments are possible without any personal information
- Cryptocurrency is not viable to use for fraud. Due to the fact that our personal information is kept hidden from prying eyes, this protects against identity theft
- Cryptocurrencies don’t charge any of the exchange rates, transaction charges, the interest rates or any other fees applied by any countries
Bitcoin trading can be very profitable and successful for both professionals and for amateurs. The currency’s high alteration has also played an important role in bringing new people to invest in the trading market. Secondly, we have personal spending. Cryptocurrency has huge potential to satisfy the business and customers by providing various advantages.
The majority of people haven’t heard of cryptocurrencies and even less about the Blockchain, meaning the value will increase as they become mainstream.
A man named Callum invested 120 kroner, which is just $23.20 in the year 2010 and bought 4867 Bitcoins. He was researching a thesis on encryption at that time and came to know about bitcoins during his research. At that time, the currency was in the developing stage and so after performing this small investment, he entirely forgot about it. It was in january 2011, there was an extensive media coverage of this unknown currency, that Callum remembered that he too owns some bitcoins.
Now since it was a cryptocurrency, it was put aside in a protective e-wallet, the code of which Callum had forgotten. After a number of failed attempts, he was successful in logging in, and to his surprise, they were worth $788,000.
The main conclusion that can be drawn from the above information is that cryptocurrencies are very simple and easy to handle. They provide security to its users which is very difficult these days. It plays an important role by bringing amateurs to invest in the trading market. Hence it helps people by making them a better person.