Cryptocurrency
A
cryptocurrency is any digital unit of value like a token, coin, or coin base
that represents the owners and the holders of that specific asset within their
financial system. It can be defined as a physical object such as a piece of
gold, a paper bill, etc.
At its most basic level, it can be considered a
medium of exchange between two people who have different amounts of resources,
e.g. money for trade, property, etc. In more complex cases the coins used to
mint an asset are based on the monetary system that has been introduced at the
time this was created.
These coins
have become digital units that represent money for sale in the market, with all other types dependent on these coins to operate properly. This also
includes assets that were originally non-monetary like real estate, stamps,
bonds, etc.
There is no central
bank for cryptocurrencies,
but there is a fixed amount of bitcoins available
to everyone who wishes to buy/sell it; they are called bitcoin (BTC). There are
several forms of cryptocurrencies today including traditional coins and tokens
and some of the newer kinds include “blockchains” which is the basis with
which cryptocurrencies are currently designed. Blockchain technology is
basically a set of rules that govern security for information.
The way this works is that as transactions are
completed in the blockchain one ledger is generated by miners that check
transactions that have taken place and then add them to new blocks. Each block
contains records of previous blocks in its sequence. On receiving a new block,
miners first verify each record and if any changes are detected then a new
process starts from the initial transaction, and so on.
All blocks in this system will be
cryptographically signed using public keys, private keys, and even encryption.
So why are cryptocurrencies so important to our society in general? Well, when
we want to carry out a transaction, we need to do it securely as soon as
possible.
We would prefer not to spend too much energy
or money to do this because it is expensive, requires us to trust the person
whose account we are dealing with, and may not be quick as they might not pay
you back in return! And although banks have made many efforts in recent years
to keep the accounts safe, this process takes time.
Therefore many people, especially those living
outside cities, try to use cryptocurrency and especially Bitcoin to transact
safely and efficiently. However, why should someone use Bitcoins when their
home does not have access to cash and credit accounts? People with little cash
or even zero have to resort to getting rid of fiat currencies, so why not use
cryptocurrencies? The main reason behind that is that cryptocurrency is much
cheaper than traditional currencies as well as quicker than regular banking
systems.
You can get your hands on Bitcoin for only
$1000 and while the current price of BTC is around $89880, this still means
that the owner could end up making thousands of dollars per year just by
spending their money on Bitcoin. It has a growing list of advantages over
conventional currencies like you pay less than the other payment method like
credit cards or debit cards.
One advantage is that crypto allows a user to
manage more than just their finances. A small business owner may choose to sell
his shares to earn extra income as he can easily track the share price and see
which parts are trading at a high volume. He can even sell items from the
company through an online shop.
One of the Popular currency
Within a few years, back cryptocurrency has become one of the popular currencies in the world. It is important
to note that in the countries like the USA, UK, Europe, etc where the laws are very
strong cryptocurrency can be used properly but in developing countries such
as Pakistan there is still no law about the use of cryptocurrency.
Now the government of Pakistan and many other
countries of the world are thinking about the use of cryptocurrency. These
countries are also thinking about the amendment in their rules to allow the use of
cryptocurrency.
Who is accepting it
The above-stated currency is being accepted by most worldwide hotels, multinational
companies like cars are accepting this currency like any other and at a low level, some types of trades are also acceptable. But it can be safely said that
worldwide trade of the above-mentioned currency is yet to be awaited.
Stance of China
China has
so far been well advanced in its public sector response launching domestic
trials of the government-backed digital renminbi (RMB) in 2020 and also beginning
to clamp down on Ant group, the country’s biggest finance-focused hi-tech
company.
Many other countries like Europe are
seriously thing whether and how to follow China by launching official digital
currencies. They are also aware these are decisions with important implications
for the wider international financial system such as the future role of the
Dollar and other reserve currencies and their part in supporting international
trade and finance.
The cryptocurrency gain and crash is also depending upon China’s reply worldwide. It is also
important for Europe, the USA, Canada, and G-7
or G-20 countries regarding the response of China over cryptocurrency.
In conclusion,
Whether it is a resident of London in
England or a resident of San Francisco in the USA, Bitcoin is now an established
part of the global economy and is accepted as a standard form of money by
almost everyone. While many believe that they have missed out on a huge
opportunity to prosper financially for a long time, others prefer to wait and
watch before investing their funds.
For such individuals, Bitcoin has proved to be
a rewarding investment. Since it is a decentralized ledger that can store
enormous amounts of information about every single transaction that has ever
happened, the best thing for the overall security is to use cryptocurrency. If
you are ready and able to invest, then go ahead and do so now!
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