Like any other currency, it represents value, and just like any valuable object, its value changes like paper currency. Every nation has a different currency; similarly, there are many types of cryptocurrency, such as Bitcoin, NEO, Stellar, Ripple, Cardano, etc.
Cryptocurrency is very secure compare to cash currency. Cash currency counterfeit can be made, or it can be double-spend while cryptocurrency does not work like that. All forms of cryptocurrencies are decentralized networks using blockchain technology, which like a distributed ledger applied through an incongruent network of computers.
Cryptocurrencies are mostly made from private firms that stand by them to guarantee their value, thus allow no government to influence or manipulate them.
Cryptocurrency – A digital asset
Cash or gold is considered an asset. Similarly, cryptocurrency is also an asset that is safe in a digital form. Such an asset is always available on the internet and can be procured and quickly sold or traded anonymously. Due to its accessibility property, it has become famous in the trading and business world.
On the internet, cryptocurrency is also known as a token and used to pay for the online product as many websites accept crypto payment. Crypto payments are very safe and smoothly delivered. On some websites, special discounts are given upon the use of crypto payment.
Technology Behind its transaction
Encryption is the best protection that is used to protect cryptocurrency from a hacker thief. Transfer of cryptocurrency is made by simple signal transfer while being encrypted. Such encryption cannot be cracked easily; it requires high-level computers and experts, and maybe then it can become possible to read few digits instead of complete details.
Blockchain technology is the new data trading method value and accepted by all developed countries. In contrast, underdeveloped and developing countries have slowly started to understand it to bring it to use. The cryptocurrency was made through blockchain technology.
Advantages of Cryptocurrency
Cryptocurrencies provide direct dealing without using a third party, thus saving profits and reducing costs. Third parties are usually the bank or credit card companies. Transitions are secured rather than having paperwork headache and waiting for its clearance. In the end, keep the paper records for the tax calculation at the end month or year.
Recently keys are made for wallet user’s to use their crypto for public buying. Public keys are used for public use, but unique keys are used when making any transaction. These are called private keys. All the processing fees from funds transfer to transactions are kept minimal, saving money from steep fees charged by financial institutions and banks.
Disadvantages of Cryptocurrency
The nature of cryptocurrency transactions is semi-anonymous, making them a perfect source for illegal undertakings, such as tax evasion and money laundering. Their advocates have often described crypto anonymity as a means to provide privacy, which is everyone’s right. Many investigators and whistleblowers have repeated evidence of the possibility of illegal activities hidden in the privacy name.
However, bitcoin has been allowed to be used as a forensic analysis to help authorities arrest those who use it for illegal activities and protect the bitcoin value and freedom of transactions without restriction. While bitcoin was monitored, other cryptos use this opportunity to safeguard underworld activities from the authorities.
Criticism of Cryptocurrency
In the past few years, crypto has collected criticism for its secrecy in exchange rate volatility, illegal undertakings, and weakness in the infrastructure of the cryptocurrency process for its misuse.
Many people complain that the bitcoin type of cryptocurrency has no root to material, so it is difficult to predict. Yet, producing it costs a lot of energy, and its price is connected to the market.
Corona Effect on Cryptocurrency
Currently, the corona has made the crypto market unstable. Therefore buyers are not investing much as lockdowns usually bring the price down of any crypto. Nonetheless, those who understand the system would also know that lockdown in a specific area would lead to a rise in prices.
Cryptocurrency is the future of currency. It’s an excellent opportunity for low and middle-income people to invest. However, research is still needed to avoid loss. Corona has made the market more unpredictable, but the opportunity will present itself. At that moment, one should become greedy and stingy but rather be well informed, alert, and careful about his step.
Time will come when people avoid hard cash due to its management, saving, and counterfeit problems. On that day, crypto will be handling all transactions, dealing, and payment. So one who has the most crypto on that day will be considered wealthy.