With all the developments happening around the world, cryptocurrency is one that everyone has been excited about. The initiation of cryptocurrency majorly took off when Bitcoin came into action. Now, there are a wide variety of cryptocurrencies out there that people are excited to use and make transactions for business and non-business related things . But is this sustainable? Will people shift to crypto as the new currency and forgo paper money?
What Is Cryptocurrency?
Cryptocurrency is the digitalised version of paper money. Yes, you read that right. It is becoming a popular way through which people make transactions and exchange goods. The first time that cryptocurrencies came into being is when Satoshi Nakamoto launched the Bitcoin. Ever since then, there has been an increasing demand for these digitised currencies.
These currencies are made using Blockchain technology that has proven to be extremely popular recently. Through the use of this technology, many businesses have come up with their cryptocurrencies that you’ll commonly refer to tokens. You can digitise your assets or FIAT money and convert them into tokenised assets. These can be used to make different kinds of transactions.
How Has Cryptocurrency Gained So Much Popularity?
Cryptocurrencies have gained popularity over the last few years. While their inception was in 2009, they have gained a large market share over the years. Now, people, especially in developed countries, have been making use of their cryptocurrency to buy or sell goods and make other exchanges. But why has it gained so much popularity? Let’s take a look at some of its core features that have led to the excessive use of cryptocurrency.
- Decentralised Network
The best thing about using cryptocurrencies is that it is not controlled by a single entity. This means that no hierarchy or monopoly is making things difficult for users. There is no intervention of banks, government, or any other group of people. So, this proves a rather beneficial thing for people all over the world. It eases transactions and makes sure that they’re quick.
- Digital Mechanism
Cryptocurrencies only have a digital presence. This means that you are offered more security than having physical assets on hand. This reduces the risk of theft or any other security risk that comes from having cash or assets on hand. They are, however, placed in digital wallets. So, you need to ensure that there are extremely secure.
- Encrypted Systems
Crypto currencies are extremely secure as they’re fully encrypted. So, no one will know the details of your wallet or anything else as all of your data will be translated into random codes. This ensures that your transactions are made anonymously, secured, and not controlled by any particular entity. This proves to be one of the key reasons as to why people wish to go for crypto currencies as opposed to the traditional means.
Now, coming to the question as to whether crypto is the new currency. The answer is, most definitely, yes. There’s a rage in the use of crypto for everything. And, with all the developments in this sector, there will be more and more options for people to utilise over time. Soon, there will surely be much greater use of crypto than any other.