What is Cryptocurrency: Everything you need to know!
Cryptocurrency – A digital or virtual currency work as a medium of exchange!
Basically, it is a currency associated with the internet that uses cryptography, the procedure for converting legible data into an almost uncrackable code. Mostly it is used to track purchases and transfers.
The need of cryptography arises in the Second World War, in order to ensure secure communication, information and money online. In current scenario, Cryptocurrencies have become global phenomenon renowned among many individuals. But still, this concept is not understood by many people. Various banks, governments and business associations are aware of its importance.
So, let’s take a look at the whole concept of cryptocurrency!
How Did Cryptocurrency Emerge?
In the year between 1998 and 2005, the first decentralized digital cryptocurrency was tracked known as “Bit Gold” by Nick Szabo. Bit gold is considered as the first ancestor of bitcoin.
Later on, in the year 2008, a paper detailing was released by Satoshi Nakamoto which was well-known as Bitcoin. It became the first decentralized digital coin and after that become popular in public in 2009.
In 2017, bitcoin has taken over the market and became the most commonly used cryptocurrency. Sometimes you must have heard the word “altcoin”; it is used to describe alternative cryptocurrencies to bitcoin like coins with small market caps. Hence, this way cryptocurrency has emerged and now in the early stage of the year 2018, it is shaping up to be a growing market for a long period of time.
How Does It Work?
Being well-known for global transfer, bitcoin has estimated around 6.000 billion market capitalization in last three years. It is considered as more stable and secure for multiple transactions from Mastercard and visa. So, it becomes the essential crypto-currency in the world.
Why Is Cryptocurrency Useful?
As it is renowned as electronic money, payments made by cryptocurrency are:-
- Cost Effective: Typically transmission of € and $ can cost up to 29% forwarded value if it is transferred through banks or money gram and also it depends on the height amounts and distance. While on the other side, cryptocurrency has almost zero cost, which proves to be a cheaper option than other.
- Transparent: With Cryptocurrency i.e. Bitcoin you don’t have to worry about fraud, theft, skipping, intercalation and even there is no state or banking intervention. So, your transfer is 100% transparent!
- Quicker: Within few seconds the unlimited amount of money is transferred to another end of the world.
Cryptocurrency is best suitable for:
- Big and rich companies, individuals who want to transfer high amounts from one end of the world to another.
- Workers working in abroad who want to transmit billions to their families.
- For individuals who don’t have their bank accounts and who want to pay billions using smartphone
- And all other people who are searching for fast and cheap money transaction, for them Cryptocurrency is the ultimate choice.
Therefore, cryptocurrency is an exciting concept full of power to fundamentals of the global capital market. This informative blog on cryptocurrency will not only brief you about its importance but also drives you towards its benefits.
To make money you must be aware about latest updates on the capital market!
Read it and secure your future!