If you are not living in the age of dinosaur then you definitely heard about Cryptocurrency. Among all the current news of internet and media, Cryptocurrency is the most prominent one. But do you know what it really is? What’s the use of this Cryptocurrency or what is the future of cryptocurrency? Well, this is one of the best technologies for the internet addicts, more specifically for them, who works and earns through the internet. If you do a detailed study about Cryptocurrency, you may find it complicated and technical. But the basic of Cryptocurrency is simple and easy. Let’s have a look at the main idea of Cryptocurrency.
What is Cryptocurrency?
Cryptocurrency simply means virtual currency or you can call it virtual money if you please, which physically don’t exist anywhere in the whole world. It is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. It uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets.
Cryptocurrency is one kind of currency and exchange media of information, which follows block chain technology. If you want to know about the block chain, this article can provide you a brief explanation. The Block chain is mainly a digital ledger in which transactions made in bitcoin or another Cryptocurrency are recorded chronologically and publicly. These days, Cryptocurrency is being more popular as it’s safe and no hidden condition is applied there. The future of Cryptocurrencies are very demanding. On May 2008 it was introduced to the world. In this short span it became so popular with people from all over the world, so you may assume that it has a ‘green light future’.
Examples of Cryptocurrency
- Bitcoin: It’s the one and only and the first and best cryptocurrency. It can be exchanged through the open source cryptographic protocol. In 2008, Satoshi Nakamoto invented it first. He named it Peer to Peer exchange system.
- Ethereum: It has taken 2nd place in the market of cryptocurrency. It not only process transaction but also complex contracts and programs. There are several clones of Ethereum and Ethereum is a host of various tokens like DigixDAO and Augur.
- Ripple: It is not a popular one in the comparison of another cryptocurrency. Its price also has been decreased. But, banks like this system for their financial benefit.
- Litecoin: It was the first cryptocurrency after Bitcoin and tagged as the silver to the digital gold bitcoin. It was faster in speed than bitcoin, amount of token was large and a new mining algorithm. But it failed to find a real use case and lost its second position. It is still actively developed and used as a backup if bitcoin fails.
- Monero: Monero was invented to fill up the gap of privacy features that bitcoin doesn’t have. But its popularity only increased in summer 2016, when some dark net markets used it as currency. This increased its price but the real use of Monero remains small.
Possible Future of Cryptocurrency
- It is the more safe exchange medium. It will never provide your any unnecessary or personal information to anyone.
- The Banking system is centralized that’s why it can be easily hacked but in the block chain system, the hacker has to hack millions of block to get access to your account. This is impossible for any hacker.
- You don’t need to move for exchanging the currency; you can do it anytime from anywhere.
- These days Bitcoin, Ethereum, Litecoin, Monero are the most popular cryptocurrencies. They all follow the same basic standard but different company adds different rules or benefits, so that client can get an extra advantage. So, in near future, these crypto currencies will hold a big position in the market.
- It is not impossible that, tomorrow we will do our shopping at a various brand shop like Adidas, KFC or Nike with cryptocurrency with much more safety and satisfaction.
- It is permission less; you don’t need to ask anybody to use cryptocurrency. It is just software that you can download for free and exchange the Cryptocurrencies. There is no gatekeeper to stop you. But some specific cryptocoins are still illegal in many regions by the law of local government.
Caleb Chen, Author at Bitcoin News said that “In the next few years, we are going to see national governments take large steps towards instituting a cashless society where people transact using centralized digital currencies. Simultaneously, the decentralized cryptocurrencies that some even view as harder money-will sees increased use from all sectors.”
Conclusion
The market of Cryptocurrency is not a slow and stable one. The prices can be changed overnight. The inventors of the cryptocurrencies have to be careful. A few survive very well in the first month then disappear if the management doesn’t go well. The future of cryptocurrency is in the hand of inventor and client both. If inventors invent and manage efficiently, the client will be satisfied. If the clients are satisfied, then the future of cryptocurrency market is safe. There are few flaws as it is difficult to get used to for some basic internet users, lack of knowledge about it, it is not accepted widely yet, there is no way to reverse the payment etc. Inventors need to improve these flaws to hold a more strong position in the market and to secure a better future of Cryptocurrency as well.