Any person, institution, country and world needs a currency to meet its basic needs and promote mutual transactions to use it smoothly. Therefore, each country has its different currency, such as Rupee in India, Dollar in America, etc.
It is a physical currency that you can see, touch, and use in any place or country as per rules. But cryptocurrency is different from that, which is a digital currency.
You can neither see it nor touch it because cryptocurrency is not printed in physical form. Hence it is called virtual currency. This currency has become quite prevalent in the last few years.
What is a cryptocurrency and how it works
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.
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 that started in 2009 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, making it successful. If seen, there are about 2000 types of cryptocurrency in the market from 2009 to the 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 Ethereum, Litecoin, Cisco, THETA, and XRP Ripple. Let us now know some important things about them: –
- Ethereum: – Ethereum is a decentralized open-source blockchain system that features its own cryptocurrency, Ether. ETH works as a platform for numerous other cryptocurrencies, as well as for the execution of decentralized smart contracts.
- Litecoin: – Litecoin (LTC) is a cryptocurrency that was designed to provide fast, secure and low-cost payments by leveraging the unique properties of blockchain technology.
- SYS Coin (Cisco): – It is a revolutionary cryptocurrency that offers zero cost financial transactions. 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.
- THETA: – Theta (THETA) is a blockchain powered network purpose-built for video streaming. Launched in March 2019, the Theta mainnet operates as a decentralized network in which users share bandwidth and computing resources on a peer-to-peer (P2P) basis.The project is advised by Steve Chen, co-founder of YouTube and Justin Kan, co-founder of Twitch.
- XRP Ripple: – XRP was created by Ripple to be a speedy, less costly and more scalable alternative to both other digital assets and existing monetary payment platforms like SWIFT.
Top 10 Cryptocurrency – Live chart, Prices
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 2000 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 more than 1000 dollars. Now take Bitcoin only. When Bitcoin was launched, there was a daily transaction of $ 10 million worldwide, but today, Bitcoin is being transacted for $ 1 trillion in a week.
In contrast, a week-round transaction of physical currency is around 70 trillion worldwide. It becomes a dollar. Bitcoin, which started at 1 dollar, has reached a price of $40,241 today. Therefore, you can guess what the growth of cryptocurrency can be in the future.
What are the benefits of cryptocurrency?
We know that anything has both advantages and disadvantages. Therefore, 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 rise very fast. Hence, it is a good platform for investment.
- Thirdly, most of the cryptocurrency wallets are available because online shopping, a 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 sure how much money can be sent out of the country and how much can be ordered. Therefore, by purchasing cryptocurrency, it should be sold in the country.
What are the disadvantages of cryptocurrency? Is it safe to invest?
- First, cryptocurrency’s biggest disadvantage is that it has no physical existence because it cannot print it, which means 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 worth noting that the blockchain is not as easy to hack as 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 by mistake, you could not call it back, causing you a loss.
Is the use of cryptocurrency legally valid or illegal?
The question that comes to many people is whether it is legally right to use cryptocurrency or not! This decision depends on which country you are staying in and using it, as cryptocurrency is still not legally recognized in some countries like
Not only this, some countries have placed it in the ‘gray 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 US, Indian citizens is also being seen in this direction.