Several trends go around in the world – fashion, music, food, and if you’re familiar with current world affairs, you must have heard the word crypto, or cryptocurrency numerous times! Is it just a trend like the others? Why is it so popular, specifically among the youngsters? Here’s more crypto news.
What is cryptocurrency?
A cryptocurrency is a digital/virtual medium of exchange, which is similar to any other real-world currency, which operates independently and does not have a physical embodiment to it. It is not controlled by the bank, hence new units can be added. They use cryptography, i.e. a method of using encryption and decryption which secures communication in the presence of third parties with ill intent—that is, third parties who want to steal your data or eavesdrop on your conversation.
People in the primeval times followed the Barter System (Exchanging of goods or services when two or more people have coincidental needs) instead of money/coins for trading. It soon fell through, hence people went through a lot of different iterations until they settled on one common ground: paper currency. It is since then, the most widespread in the world. In modern times, we have paper currency, coins, credit cards, and digital wallets—for example, Apple Pay, Amazon Pay, Paytm, PayPal, etc. Since all of these are authorized and controlled by banks, hence have a limited source and supply to them, but cryptocurrencies are different. The first-ever decentralized cryptocurrency, namely bitcoin, was created in 2008. However, they became popular around 2010, and they’ve been running the market now again!
Benefits of using cryptocurrencies
There are many benefits of using cryptocurrencies in today’s world.
- Protection and inflation.
- It is decentralized.
- It is a cost-effective mode of transfer.
- Outsized returns.
- It is self-governed and managed.
- It is incredibly secure and is private.
- Exponential industry growth.
- Currency exchanges are converted smoothly and without hassles.
- Short settlement time and low fees.
- Easy transfer of funds over seconds.
- Portfolio diversification.
- Transactional freedom.
Even after the massive rise in popularity, cryptocurrency still has a divided audience who are in and against it causing a conflict between regulation and anonymity. Research says that people believe they will likely take up 25% of national currencies making them the common mode of transaction of funds accepted by businessmen, merchants, and customers even. Although their prices may still fluctuate like they’ve been doing these past years, it is no wonder that crypto is an international phenomenon and is almost a necessity to stay updated in the crypto news buzz.