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What is Cryptocurrency?

Cryptocurrency: An introduction

The last two decades have witnessed enormous rise of digitalization. This digitalization has changed our lives so dramatically that now we can’t even imagine our existence without it. Cryptocurrency is one of the revolutionary inventions of digitalization which is aimed to facilitate financial transactions over internet without compromising on security and privacy of its users.

The word “crypto” has its origin in Greek which means secret or hidden. Hence cryptocurrency can be termed as hidden or encoded currency that is using cryptography. But technically speaking it can also be defined as digital or virtual currency or a digital asset designed to work as a medium of exchange.

Cryptocurrency is generally associated with internet and is being produced, distributed and exchanged electronically over internet across the world.

What is Crytocurrency: The History

What is cryptocurrency: BitcoinBefore the introduction of money people use to trade using barter system in which things were exchanged with things. Then fiat currency was introduced which ruled the world for almost 1000 years and today it’s popular form of money. Cryptocurrency, relatively different from fiat money is the production of recent digital revolution which was formally introduced by pseudonymous developer Satoshi Nakamoto in 2009 with the name of Bitcoin.

Features of Cryptocurrency

The most spectacular feature of cryptocurrency is its secure nature. As compared to other currencies it is less vulnerable to theft and hacking because of cryptography techniques. Moreover, as it is not issued by any central authority or government so it is resistant to government interface or interruption.

In addition to this, cryptocurrency is easy to transfer and save its owner from double spending. It provides direct exchanging facilities thus making its transactions less expensive. On the Bitcoin network transactions fee are at most a few pennies.

Why People are crazy about Cryptocurrency?

With every passing day people are getting involved in discussions about cryptocurrencies. Everyone is struggling to get more and more awareness about cryptocurrencies. Here are some reasons why people are getting crazy about cryptocurrencies:

  1. No middle men, banks or governments are controlling cryptocurrencies. Unlike traditional currencies, these currencies are decentralized.
  2. Cryptocurrencies are easy to access and with the expansion of internet and mobile phones across the globe; everyone can easily get benefits of cryptocurrency.
  3. Cryptocurrencies are being recognized universally and most importantly they are not bound by the exchange rates, interest rates and transaction charges or other charges of any country.
  4. In cryptocurrencies people are absolute controllers of their own money and that too without losing their personal information to any bank or institutions.

Future of Cryptocurrency

Future of CryptocurrencyThough future prediction of relatively new and revolutionary term Cryptocurrency requires numerous factors to be considered, the detailed analysis of economic history of different cryptocurrencies is showing positive trends. The economic experts and industry professionals are very hopeful for very promising and bright future of cryptocurrency. Many financial experts, leaders in politics, economics and business, mainstream media persons, open minded citizens and young people have already shown their interest in cryptocurrencies by investing in Bitcoin and other likewise currencies.

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