Crypto Currency, such as Bitcoin and Ethereum, has been of growing interest lately. What is crypto currency? Technically it’s a digital currency that utilizes cryptography for security. This is to ensure that transactions can be secure without the need for a third party like a bank. The first major example of Crypto Currency was Bitcoin which was created in 2009 by a person or group of people who go by the name Satoshi Nakamoto. The world’s first decentralized peer-to-peer payment system with no central authority or middlemen. The concept has been gaining popularity over the last few years as
What Is Crypto Currency?
Bitcoin, a cryptocurrency that relies on cryptography to secure transactions, was the first one to get mainstream exposure. Shortly after the launch, Satoshi Nakamoto went into hiding in 2014. In 2016 and 2017 a new wave of crypto currencies started being released. These new forms of crypto currency (cryptocurrency) have been coined as Bitcoin 2.0, Ripple, ZCash, and Litecoin. These were more consumer friendly than the previous versions, which were a bit more complex. Even though all have their appeal, they are not the most stable of all. One of the most well-known of the new wave is Dogecoin which originated from the Reddit crypto currency community and the Doge meme. What Does It Mean for 2021? The use and popularity of these newer crypto currencies will only continue to grow.
Why is Crypto Currency Growing in Popularity?
Crypto currency can be divided into three main categories, Traditional fiat currencies, Public key encryption and Blockchain technology. Traditional Fiat Currencies (Crypto Currencies) Many countries have varying degrees of adoption of Crypto Currency such as China, Russia, Brazil, and other countries. One of the largest examples is China who established a 100 billion USD crypto currency based on the bitcoin concept. The Bitcoin system is an open source blockchain-based cryptographic currency. The major advantages to the Bitcoin system include low fees, fast transactions, immutability of records, and extremely secure. The major disadvantages include the volatility of the system, high fees, and slow transactions compared to other fiat currencies.
What are some drawbacks to Crypto Currency?
There are some significant drawbacks to crypto currency, like its volatility. Bitcoin, in particular, saw its value skyrocket to over $17,000 in early December 2016, and by mid-January 2018 it had dropped to about $7,300. On the other hand, Ethereum’s value rose from $0.32 in November 2016 to about $1,300 by mid-January 2018. Also, with the increase in the popularity of Crypto Currency, people are beginning to use it to bypass traditional payment methods, such as in the online video game Fortnite. Fortnite developers even created a “Fortnite Stake” which was an in-game currency used to buy virtual goods such as dances, emotes, pets and more.
A glimpse of the future with crypto currency
Crypto currency proponents believe it can be a key part of the future digital payments system and serve as a barrier to the large corporations that want to control the global financial system and as an alternative to the traditional banking system that is starting to go out of business as more people opt for digital payments over the need for traditional debit and credit cards. Bitcoin, as well as other forms of crypto currency, was the first significant step into this type of world. Today, the digital coins (called tokens) of many digital currencies are gaining popularity among individuals who don’t want to wait for money to be sent from one place to another. And they don’t want to wait for their money to be converted from one currency to another when they want to spend it or invest it.
These days, digital currencies are in fact a common thing and you probably know someone who has one. Digital currencies are slowly taking the world by storm and will be here to stay for the foreseeable future. Digital currencies are here to stay. By that, I don’t mean they will forever replace cash, but that they will be an accepted form of payment in a wide range of uses. Having a digital wallet and being able to access it anywhere is just as good as having cash.