In simple terms, cryptocurrency is digital money, currency in a digital form. It has been discovered and used by a lot of individuals and organizations today.
As at the end of December 2017, cryptocurrency recorded a total value of nearly USD 600 million in use around the world, which is almost 40 times more than the previous year. Cryptocurrency is bought by some people with the hope of increment in its price. But aside from speculation and investment, cryptocurrency is daily increasing in use as a medium of exchange for buying goods and services. You may want to know the reasons behind the popularity, below are some reasons why cryptocurrency is widely used as a means of payment:
- It is secure and cannot be duplicated due to the complex mathematical algorithms involved. This makes it impossible to be counterfeit.
- The money is programmable and adaptive in nature. It provides a lot of options and guidelines on how to use it to meet day-to-day needs.
- To learn how to use cryptocurrency and start using it has been made simple and less complicated.
- It is not centralized and also more efficient. The cryptocurrency is self-owned and doesn’t require any bank or government to issue the money, neither is any middleman needed for transferring of funds. This makes your transaction cheaper and sometimes faster.
- It helps those that don’t have access to the traditional banking system to be able to partake in the worldwide financial system.
- It proffers new methods of reaching prospective customers by organizations and how they raise capital.
- The opportunity to use cryptocurrency as payment for goods and services is increasing all around the world.
Some of this cryptocurrencies can be used to purchase the same goods and services we purchase with our traditional legal tender i.e “fiat currencies” like dollars, euro, yen, and others. But some cryptocurrencies are used only in closed systems, for payment of specific platform services.
Basic Facts You Should Know About Cryptocurrency:
Bitcoin is the most widely known cryptocurrency in the world, it came into existence in January 2009 and through it, cryptocurrencies began to rise rapidly since then. Even though there were several failed attempts to create the currencies in earlier years, the creation of Bitcoin was the beginning of the cryptocurrency history.
Bitcoin was created by Satoshi Nakamoto, the gender of the person is not recorded, whether a male, female or a group of people is unknown to us. In the world today, there are a lot of cryptocurrencies in the world, they’re actually more than a thousand and more are being created every day. The most popular is Bitcoin, other cryptocurrencies are collectively referred to as altcoins and tokens, which are used to purchase services on a particular blockchain based platform. Altcoins has various levels of privacy, transaction scalability, and features. Also, there are no coins on the blockchain, the word “coin” is expressed as a metaphor. A coin is only a ledger entry on the blockchain.
For more information about cryptocurrency and how it works, visit our website, you will find all the information you need.