Any person, institution, and country of the country and the world needs a currency to fulfill its basic needs and to promote mutual transactions so that it can use it smoothly. Therefore, each country has its own different currency, such as the rupee in India, a dollar in America, etc. Actually, it is a physical currency that you can see, touch and use it in any place or country as per rules. But cryptocurrency differs from this which is a digital currency (What is Cryptocurrency).
How does it work? What are its Advantages and Disadvantages?
You can neither see it nor touch it, because crypto currency is not printed in physical form. Hence it is called virtual currency. This currency has become quite prevalent in the last few years.
We know that anything has both advantages and disadvantages. So, here we first talk about the benefits of cryptocurrency. Nevertheless, generally, we can say that the benefits of cryptocurrency are more and losses are less.
What is Cryptocurrency after all?
A cryptocurrency is a currency built on a computer algorithm. It is an independent currency that has no owner. This currency is not under the control of anyone’s authority. Just like the rupee, dollar, euro, or other currencies, this currency is not operated by any state, country, institution, or government.
It is a digital currency for which cryptography is used. Usually, it can be used to purchase goods or to buy a service.
You should know that the first cryptocurrency was started in 2009 which was “bitcoin”. It was built by an engineer named Satoshi Nakamoto from Japan. Initially, it was not so popular, but slowly its rates started skyrocketing, which made it successful. If seen, there are about 1000 types of cryptocurrency in the market from 2009 to the present time, which acts as a peer-to-peer electronic system.
If seen, there are about 1000 types of crypto currency in the market from 2009 to present time, which acts as a peer to peer electronic system.
What are the most popular currencies other than bitcoin?
Apart from Bitcoin, other cryptocurrencies are available in the market which is being used more nowadays, such as Red Coin, Sia Coin, Cisco, Voice Coin, and Monroe. Let us now know some important things about them: –
- Red Coin: – Apart from Bitcoin, there are many other cryptocurrencies that can be used on special occasions, one of which is “Red Coin”. It is used to tip people.
- Sia Coin: – Sia Coin is denoted with SC. This coin is growing well. The price of this coin may increase even more.
- SYS Coin (Cisco): – It is a revolutionary cryptocurrency that offers zero-cost financial transactions and with incredible speed. Business Asset Digital Certificate provides the business with the infrastructure to securely trade data. Cisco works on the blockchain which is a part of bitcoin itself.
- Voice coin: – It is a platform designed for emerging musicians where singers can price their music on their own. They can provide a sample track of music for free. Also, you can get support from music enthusiasts and users on the platform. The main objective of this platform is to monetize independent artists.
- Monero: – It is also a type of cryptocurrency in which a special type of security is used. It is known as Ring Signature. It is used extensively in the dark web and black market. Smuggling is done with its help. With this currency, black marketing can be done easily.
How is the growth of Cryptocurrency?
If we talk about the growth of cryptocurrency, then investing in it is a very profitable deal. Today there are about 1000 types of cryptocurrency in the market and the price of all these coins was negligible at the time of launching. However, in a few years, their price has also reached 1000 dollars. Now take Bitcoin only. Whereas, a week-long transaction of physical currency in the whole world is worth about $ 70 trillion. Bitcoin, which started at a price of 1 dollar, has reached a price of $ 1200 today. Therefore, you can yourself guess what the growth of cryptocurrency can be in the future.
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What are the benefits of Cryptocurrency?
We know that anything has both advantages and disadvantages. So, here we first talk about the benefits of cryptocurrency. Nevertheless, generally, we can say that the benefits of cryptocurrency are more and losses are less. First, a cryptocurrency is a digital currency with very little chance of fraud. Secondly, it is beneficial to invest in cryptocurrency when there is more money because its prices tend to bounce very quickly.
Therefore, it is a good platform for investment. Thirdly, most of the cryptocurrency wallets are available due to which online shopping, the transaction of money has been simplified. Fourth, the cryptocurrency is not controlled by any authority, due to which no threat of demonetization and currency depreciation is exposed. Fifth, there are many countries where there is no capital control. Meaning that it is not certain how much money can be sent out of the country and how much can be ordered.
Therefore, it can be easily sent outside the country by purchasing cryptocurrency, and then it can be converted into money. Sixth, the biggest benefit of cryptocurrency is to those who want to keep their money hidden. Hence cryptocurrency has emerged as the best platform to hide money. Seventh, cryptocurrency is completely safe. Just you need to keep the authentication for it, because such currency is based on blockchain. Hence, the entire blockchain has to be mined in order to perform any type of transaction.
What are the disadvantages of Cryptocurrency?
First, the biggest disadvantage of cryptocurrency is that it has no physical existence because it cannot be printed. Meaning that neither the currency notes can be printed nor any bank account or passbook can be issued.
Secondly, there is no country, government, or institution to control it, due to which there is a huge jump in its price, sometimes a huge fall, due to which investing in cryptocurrency is a risky deal. Thirdly, it can be easily used for wrongdoings such as arms procurement, drug supply, black marketing, etc. as it is used between two people only. So, it can also be quite dangerous. Fourth, there is a risk of hacking it.
It is a matter of fact that the blockchain is not as easy to hack because it has complete security arrangements. Despite this, hacking cannot be ruled out as there is no owner of this currency. Fifth, another disadvantage of this is that if a transaction happened to you accidentally, you cannot call it back, causing you a loss.
Is the use of Cryptocurrency legally valid or illegal?
The question that comes to the mind of many people is whether it is legally right to use cryptocurrency or not! Actually, this decision depends on which country you are staying in and using it because some countries still do not have legal recognition for cryptocurrency, of which India is also one. Not only this, some countries have placed it in the grey zone’.
This is to say that neither it has been formally banned nor its use has been recognized. Undeniably, due to good growth in cryptocurrency, the trend of Indian citizens is also being seen in this direction. Therefore, it is expected that the Government of India will also take some positive initiatives in the future.