“WHAT IN THE WORLD IS A CRYPTOCURRENCY?”
“What is cryptocurrency?” That is the first question to ask. In simple terms, cryptocurrency is a digital currency with value. One may ask “Is there such a thing as digital money?” well, with the obvious existence of cryptocurrency I will definitely say yes, yes there is. Cryptocurrency can be used just like our local currency (fiat) in the buying and selling of goods and services.
Cryptocurrency, being a digital money that can easily be accessed online, ensures that transactions can be made anywhere in the world in a matter of seconds.
Unlike banks which are owned by organizations and authorities in charge of keeping our money and overseeing every monetary transaction, in cryptocurrency, you are dependent on yourself. You do not need a third party or permission to use your money. This means that you are your own bank, you literally have all the power as far as you have an android phone and access to the internet. That is honestly all you need to be your own bank. No middleman is required, and the best part of cryptocurrency is that you can make quick transactions to anybody anywhere in the world and at any given time in a matter of seconds.
The origin of cryptocurrency can be said to be the origin of Bitcoin, this is probably because it is.
The Bitcoin is the first cryptocurrency, after that, more people became aware of the existence of cryptocurrency. Currently, there are over 5,000 cryptocurrencies in existence and there will surely be more in a few years to come. Blockchain is the reason cryptocurrency has any value in the first place.
A Blockchain is a digital ledger of transactions that is duplicated and distributed across the entire network, this makes it highly difficult or impossible for the information to be hacked or changed. All identities of coin owners are encrypted in order to ensure the legitimacy of the record keeping. This means that you alone know how much is stored in your crypto wallet and the transactions you have made with it. No one else has access to it, no third party, government or monetary authority can have access to it. This also means that no one can take it away from you, not your government, guardian or parents.
It is definitely cheaper.
It gives one absolute control of one’s funds.
It has extremely high security
Transactions are easily made.
It is a means of increasing one’s finances, especially through investment.
It is highly volatile; one minute a cryptocurrency price could be elevating, the next minute, the price could go so low that you would not believe.
It is not generally accepted as a means of payment.
Loss of key phrases and other secret codes leads to loss of crypto wallet.
SOME EXAMPLES OF CRYPTOCURRENCIES
NAME
LAUNCHED YEAR
CURRENT PRICE ($)
BITCOIN
2009
$59,844.14
ETHEREUM
2015
$2,012.80
BITCOIN CASH
2017
$586.21
BINANCE COIN
2017
$ 346.82
LITECOIN
2011
$207.60
POLKADOT
2016
39.41
TETHER
2014
$1.00
There so much more cryptocurrencies than this.
With the way the world is evolving and becoming even more digital it is safe to say that cryptocurrency is just beginning.
Already, the Blockchain technology enables companies to operate digitally.
In India, the regulation of cash bills have been reduced in order to gradually steer the country towards electronic transactions.
China as a whole is known as the biggest participator in the market of digital currencies. Currently, China is considered the biggest participant regarding trading and mining of cryptocurrencies. 80% of the global Bitcoin mining is carried out by China.
Not just China, but major countries even in Africa such as South Africa, Ghana, Botswana etc are into cryptocurrency.
This is proof that cryptocurrency is slowly and surely becoming the future, and in a decade from now, it is bound to be even more powerful than it already is.
