If you are new to the world of crypto, you may have a lot of questions.
You may have many questions, but you need to understand a few things. If you understand the things I am going to explain to you, you will understand the whole game of crypto.
You are still considering the notes in your pocket as money. For example, the note of 500 in your pocket makes you think it is money. But suppose that today the government has announced that the 500 rupee note will not be valid after today. Note of 500 or currency in your pocket will be worth zero. So it is not money. There is a difference between currency and money. The value of money cannot be zero. Why can't it, because money has its own stored value. For example, you have a gold coin in your house and this gold coin has a value. You can exchange it through currency. But you know there is value in it. Government cannot ban it. And throughout the world, you can use it. It is possible that the currency of one country is not acceptable in another country. You have to convert it to USD first and then you get something. That means there are many problems. But gold or silver or anything that has a value stored in it can be used everywhere. So you have to understand that there is a difference between currency and money. Because currency can be manipulated. It is regulated and manipulated by the government. Currency can be printed as much as the government wants. But money cannot be printed as much as the government wants. The government cannot print as many gold coins as it wants. It requires mining. It has limited resources.
Cryptocurrency has a limited supply, no one can print it As much as he wants, it has a stored value. And it can be easily used anywhere in the world.
Currency can be either centeralized or decentralized. The currency you use is controlled by your government. They can print as much currency as they want which causes inflation. The main reason for inflation is that the government can print as many notes as it wants. It is in the hands of the government which means it is centralized. But this is not the case with cryptocurrency. For example, bitcoin is not controlled by any government. And it cannot print as many bitcoins as it wants. It has limited resources and limited supply. Being a limited supply, it also has a value stored in it. Now because the value is stored inside Bitcoin and it is also limited, it works like gold. Gold is also limited and bitcoin is also limited. That's why people generally say that the price of Bitcoin will increase in the coming days. Because no government is controlling it That is why there are no regulations in it.
The currency we use is the rupee, for example in Pakistan. Dollars are used in some places. Euros are used in some places. All these currencies are fiat. A few years ago, a country could only print as much currency as it had in gold or other assets in reserves. But in the current era, the various countries that are printing currency do not have any assets behind it. Print as much currency as you want. Because it is controlled by the government, many people say that fiat is a fake currency. It is not backed by any gold and it is not backed by any asset. My advice is to convert whatever currency you have into assets. Buy gold or buy land. The advantage of this is that the value of your asset will not decrease. You will also avoid inflation. Pakistan is currently printing a lot of currency.
The last and most important thing is the blockchainBlockchain. Many people say that we don't trust cryptocurrencies that much. But we have a lot of faith in blockchain. A simple thing is a ledger. ledger is an account or record used to store bookkeeping entries for balance-sheet and income-statement transactions. Any transaction takes place. We maintain it. Now all your transactions are maintained by your bank. That is, all the records are in the bank. If it happens that any entry in the ledger is deleted. So how much will it cost? How much investigation will have to be done? Then later it will be determined whether there is fraud and it often happens in banks. But this is not the case in blockchain. You cannot delete an entry from the blockchain. Neither can edit, only you can view this entry.
Every transaction in blockchain is verified at different stages. If any error occurs somewhere in between, the transaction will not be verified. Because your account is maintained in many steps. The advantage of Blockchain is that its ledger cannot be manipulated by anyone. No one can manipulate the figures. every transaction is being recorded.
One of the biggest advantages of cryptocurrencies is their decentralized nature. Unlike physical currencies, which are controlled by govt. and financial institutions, cryptocurrencies are decentralized and operate on a peer-to-peer network. This means that there is no central authority controlling the supply of cryptocurrencies making them less vulnerable to manipulation or inflation.
Cryptocurrencies are also more secure than physical curreincies. With physical currencies you need to carry a cash or use credit card, both of which can be lost or stolen. With cryptocurrencies your funds are stored in a digital wallet that is protected by advance encryption technology. This makes it much harder for hackers to steal your funds.
Another advantage of cryptocurrencies is lower transaction fees. When using physical currencies for transactions, you may need to pay fees for things like ATM withdrawals, wire transfers, and currency exchanges. With cryptocurrencies, transaction fees are typically much lower, making it easier and more affordable to transfer funds.
cryptocurrencies are also faster transactions than physical currencies. When you use physical currencies for transactions, it takes days for the transactions to be completed. With cryptocurrencies, transactions can be completed almost instantly, making it easier to transfer funds quickly and efficiently.
Finally cryptocurreinces offer global access that physical currencies cannot match. With physical currencies, you may be limited by currency exchange rates and transaction fees when conducting transactions across the border. With crypto you can transfer your fund anywhere in the world with out worring about exchange rates or fees. Source
