-Devyanshi Agarwal
I
might not have wings today, but evolution in technology gives birth to a hope
of having them one day.
The
term ‘ Digital’ has penetrated in our lives so swiftly that the growing use of
cryptocurrency today does not sound bizarre to us.
It is a decentralized form of digital currency
which uses encryption techniques in generation and regulation of units of
currency.
If
internet would have been a country, then cryptocurrency might have been its
national currency.
Cryptocurrency
is a peer-to-peer cash exchange system, free from any bank and government
intervention. It uses blockchain technology to record all the transactions and
the programmer needs to solve a mathematical puzzle to keep it secure.
Currently,
there are 3000 cryptocurrencies in circulation in the world.The first ever
digital currency that came into existence on 3rd Janaury 2009,
Bitcoin, was developed by an unknown programmer Satoshi Nakamoto. His aim was
not to invent a currency but a monetary exchange system independent of a third
party.
When
bitcoin was launched, its price never topped $1. Its highest price for the year
was just $0.39! Today, one bitcoin is worth roughly about $1,200. One of the
reasons that could prompt us to buy a bitcoin
today is not so much to use it for online payments but as an investment.
The
blockchain system is designed such that at its maximum only 21 million bitcoins
can be produced and circulated. As of
today, 16.5 million bitcoins have been
mined. That is about 75% of the total cap is already in circulation. Estimates
say that the last bitcoin that will ever be mined will come into existence in
2140.
Unlike traditional currency that is
inflationary in nature, the bitcoin is a deflationary currency i.e. if only so
many bitcoins will be used and the demand for those rises, the value of a
bitcoin would also rise.
Bitcoins
are stored in a digital wallet. The wallet is a kind of virtual bank account that allows users to send or receive bitcoins,
pay for goods or save their money only at a fees of Rs 1.67.
Bitcoins
have become legally acceptable in 60 countries as of today. Due to its high
anonymity, it has become the currency of choice for people buying drugs or
other illicit activities.
Other
cryptocurrencies such as EB3coin, was founded in the year 2015. It is legally
acceptable in 16 countries. 64 million EB3 coins have been mined and in
circulation out of the 786 million
coins.
Ripple
is a Google backed cryptocurrency, whereas, Microsoft, Accenture, Intel and
more than two dozen banks and other companies have formed an alliance to use
the Ethereum blockchain code.
There
are many more virtual currencies in circulation, but one would have a hard time
trading them for actual money.
Cryptocurrency
is the currency of future, mostly unregulated but that could change as
governments are concerned about taxation and their lack of control over the
currency.
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Thank you so much I really loved your writing
ReplyDeleteCheck
out the site for more info.