These days the hottest topic is regarding the
cryptocurrency. BitCoin, Ethereum and many other cryptocurrencies are present
now. Investing them is the investments of future. There are several articles
coming out every day, people becoming rich, as the prices go higher.
Cryptocurrency is destined to change everything, as technology again and again
evolves, with the fundamental principle of changing the things we used to know.
Everybody would be asking “what is a cryptocurrency”, but
what isn’t a cryptocurrency? It isn’t something that we have been used to of
having in our wallets. Or keeping a track of the bank accounts. Credit cards,
cash are all the items representing currency. No central bank stands behind any
of the cryptocurrencies, nor by governments, giving birth to the fact “cryptocurrencies
are decentralized”. They follow certain rules, just the rules exist outside the
traditional financial system.
Interesting Facts:
We have sketched some interesting facts about the digital
currencies. And they are enlisted below as:
·
Volatile
·
Blockchain
· Blockchain advantages
·
Miners
·
Banned
·
Limited knowledge
·
Decentralization
Volatile:
One thing everybody would have noticed is that the digital
currencies are volatile. That can be seen easily and noticed by anyone who’s
following the cryptocurrencies. Since the virtual currency’s trading takes
place on the numerous cryptocurrency exchanges as
compared with the central exchange. Which leads to increasing the volatility of
the digital currency aka cryptocurrency.
Blockchain:
When you meet someone online, how do you make sure, they are
who they are writing to you to be? Or buy coffee, labelled with fair trade but
what ascertains its origin? To assure, about the questions, you require system
where records could be stored. Facts can be verified by anyone, and security
guaranteed. So no one could cheat the system by editing records. Such systems
are on the horizon & software that powers them is called the Blockchain.
Blockchains store information across the network of personal computers. Bitcoin
is founded upon the infrastructure of Blockchain. It is a digital and a
decentralized ledger recording payment and transactions in the safe.
Blockchain advantages:
There are various advantages that are associated with
Blockchain. Not just the decentralization, as minors work entire 24 hours of
each day a week verifying and confirming the transactions. With no middleman
involved the costs of transactions would actually decline with the blockchain.
Another merit of Blockchain is the transparency & the
control that it significantly offers the users with. Instead of the
cryptocurrency be controlled and handled by a third-party, the community
members are the ones who think together and find a solution for the future
development. Though Blockchain has its very own drawbacks. To begin with, it is
still under development or not yet fully developed. Also no guarantees of a
quicker transaction with blockchain is guaranteed as far as yet.
Miners:
Miners play a protagonist, by that I mean, whenever a
cryptocurrency transaction is carried out. The transactions require a
verification, which is the task upon the shoulders of miners. Mining isn’t the
laborious one. All the miners have to do is solve complex computations, using
high-powered computers to verify & log the transactions in a competitive
way. The first to do the solution is rewarded in the form of cryptocurrency
coins.
Demerit: Hardware & Electricity charges will be enormous. But also rewarding in handsome coins.
Demerit: Hardware & Electricity charges will be enormous. But also rewarding in handsome coins.
Banned:
To your surprise, cryptocurrencies are banned from access in
most of the countries. They might be talked about here and there, but not
everywhere. Since they aren’t regulated, decentralized, few of the countries
have put up a ban on the cryptocurrency.
Cryptocurrency trading, virtual currency payments, buying things in digital currency is regarded as illegal in half dozen countries. The list of cryptocurrency banned countries is expected to grow in numbers.
Cryptocurrency trading, virtual currency payments, buying things in digital currency is regarded as illegal in half dozen countries. The list of cryptocurrency banned countries is expected to grow in numbers.
Limited Knowledge:
Even though cryptocurrency is one of the most talked things
globally, people still seem to lack knowledge about it, how it works, what is
its use. According to a poll 80% nearly knew about the Bitcoins but only 30-40%
knew about the Ethereum. People are still seemingly becoming accustomed to
cryptocurrency and learn the digital currency.
Decentralization:
Decentralization is one of the major attributes about the
cryptocurrency that has been gaining public attention. & also a reason why
people are coming towards the digital currency. No central hubs where the
information is stored, no data centers, increasing the security.
Blockchain technology is so secure and reliable you can trust it blindfolded.
Blockchain technology is so secure and reliable you can trust it blindfolded.
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