Do We Really Need the Cryptocurrency? Yes, Indeed! – Financial Technology: Trends in 2019
In 2011, one of the articles of the well-known Forbes magazine contained the ‘cryptocurrency’ word for the first time in history. Even though it happened less than a dozen years ago, the cryptocurrencies became an integral part of modern life, while the number of its holders and users is constantly growing. Let’s take a closer look at the cryptocurrencies in order to find the most popular cryptocoins, their advantages, flaws and the major issues related to their usage.
Simplistically saying, the cryptocurrency is a specific digital code, which can be used as an electronic mean of payment to purchase various products and services. All the features of this asset can be seen from its clear name. This type of currency is based on the following cryptographic elements: a digital signature and hash functions.
Cryptocoins are used as the payment unit and the unit of account, which exist only in the digital form. One can perform various transactions with the cryptocurrency by using a virtual wallet. Despite the fact that this type of currency is not minted in the traditional way by one of the governments, the cryptocurrency can be used in almost any sphere beyond the virtual world.
The wide range of cryptocoins
While talking about the cryptocurrency, one definitely needs to pay some attention to the fact of their multiplicity and variety. Currently, there are more than 2,400 different coins and tokens in the world. At the same time, the following cryptocurrencies are considered the most popular ones:
- Bitcoin: the first and the most famous cryptocurrency. Due to its enormous price, dominating status and high influence on other digital assets, Bitcoin is considered ‘digital gold’ in the crypto market.
- Ethereum: this cryptocurrency is getting more and more popular and was created by a young developer. There’s almost no chance that it’s going to take the leadership from Bitcoin; however, the second place seems the best location for this digital asset.
- Litecoin: this one is considered ‘silver’ in the crypto world because the price of this asset is 100 times lower than one of Bitcoin. It has no chances to become the second cryptocurrency by the level of popularity, yet it takes one of the first 5 places for sure.
It’s worth noting that the cryptocurrency appeared as a result of specific features and conditions of the modern era. These days people prefer to have a truly versatile account that is not directly related to one of the fiat currencies or governments all around the world. It’s impossible to imitate, tamper or ban the cryptographic code. This fact makes the cryptocurrency more reliable than traditional banknotes and cards.
At the same time, one is able to exchange the cryptocurrency to the real fiat money, being able to gain impressive profits. The combination of these features makes the cryptocurrency not only relevant but incredibly popular these days.
Main disadvantages of the cryptocurrency
Despite the fact that the cryptocurrency can bring a lot of benefits to each and every person, who owns a crypto wallet, this money has several issues, which have to be taken into account. So, what are those issues? One needs to understand that the direct linking to the information of the wallet is the biggest advantage and the flaw of the cryptocurrency. On one hand, you can easily make anonymous transactions, while on the other hand, you will lose all your belongings if you forget or delete the password for your wallet.
In addition, one needs to remember the constant attempts of the governments and central banks to take control of the world of cryptocurrencies and digital transactions. No doubt, they don’t really want to see another competitor in their field. Finally, the wide range of different cryptocoins is another serious issue that affects the entire crypto world. The process of mining becomes more and more complex day by day. As a result, its profitability is sharply decreasing. Nevertheless, all these disadvantages are not able to be more important than the benefits of cryptocurrency, which make it an attractive asset for people all around the world.
Published at Fri, 23 Aug 2019 18:39:13 +0000
Bitcoin Pic Of The Moment
Etherium Meetup Hong Kong organized by Jehan Chu.
Vitalik Buterin test codes (illustrates) one of the features of Caring Currency using Etherium.
Photo: Philip McMaster, Caring Currency – World Sustainability Project
www.CaringCurrency.com
www.RepublicOfConscience.com
www.WorldSustainability.Org
By Philip McMaster PeacePlusOne_!/ on 2014-06-26 21:40:34
