For some people who are not familiar with cryptocurrency, you might think of it as something skeptical or a too-good-to-be-true form of currency. Perhaps, you might even imagine an underworld banking system or illegal activities with individuals sitting in a basement with their computers. But once you get to know crypto better, you will learn about these common misconceptions and might embrace them in your life.
The year 2017 was the major breakthrough of cryptocurrency, specifically Bitcoin. Wherein from its initial price of $1 per 1 BTC in 2009, it is now over $19,000 in 2017. However, since the cryptocurrency was still new and in existence for just a decade during that period, many investors are still skeptical and consider it speculative. Others criticize this digital currency and consider it as just another bubble that will burst and fade anytime.
Years are passing and cryptocurrency is still in existence. Bitcoin has proven its resilience, and over a thousand cryptocurrencies have emerged.
While some mainstream businesses refuse to embrace cryptocurrency the way they did our fiat currency, it is still undeniable that the influence of this virtual currency is impacting the world and even the lives of many people.
Imagine a currency like the ones you have in your wallet, but a digital and intangible version of it. In essence, a cryptocurrency is a form of blockchain-based virtual currency that is decentralized - meaning it works even without a central server. It is not distributed, owned or regulated by the government or any authority. Rather, it is run by a peer-to-peer community made up of users' computer networks worldwide.
Bitcoin is the mother of all cryptocurrencies. It was the first and original virtual currency that was invented in 2008 by an anonymous person or a group of people known for the pseudonym, Satoshi Nakamoto. The identity of Nakamoto remains unknown until this day.
Bitcoin was first launched in January 2009. Originally, it was mined using computers. The first Bitcoin trade was made in 2010 where a man from Florida traded 2 boxes of Papa John's Pizza for 10,000 bitcoins. That could have been worth over $100 million today.
Blockchain technology works as a public ledger that records all transactions and data. These roles are verifying and confirming new entries as well as all changes created.
This distributed public ledger is run by cryptography which adds to the safety and security of cryptocurrency. Cryptocurrency like Bitcoin is acquired through the process of digital mining. Using the network's highly complex digital code, all the new information that enters on Bitcoin's ledger or blockchain are mathematically checked. This is the process of crypto mining.
Cryptocurrencies serve different purposes. Although most of them are blockchain-based, some of their features are unique. Some are intended to serve specific industries or solve problems, while others serve general purposes. Platforms like Bitcoin Pro can help you manage your crypto assets and keep you updated about the latest trends.
Although everyone does not yet recognize Bitcoin and cryptocurrencies, the majority of people especially those who patronize this virtual currency know how important it is. Thus, they can see how improving lives through cryptocurrency works.
Since Bitcoin was conceived, the financial world has transformed. It has set standards and ideals for how a financial system should be. Faster, more convenient, cheaper charges, and more secure.
There are several ways how cryptocurrencies improve lives.
One of the biggest concerns in relation to money is fraud. Of course, nobody wants to be a victim. As a result, people resort to financial networks with tight security features. The possibility of fraud, whether it be using your credit cards or transferring funds, is a big concern for everyone.
Cryptocurrency enters the scene. It enables a person to do online fund transfers securely through blockchain technology. The blockchain ensures it records and distributes all transactions, giving assurance to all parties. This allows the sender and receiver to view every successful transaction.
Entrepreneurs and businesses can utilize crowdfunding in order to raise money or funds for their projects or concepts. This mitigates risks as investors can make small investments and gives opportunities to those who don't want to make large investments. With lesser risks, more investors will be encouraged to invest and get involved.
As cryptocurrency continues to positively impact crowdfunding, it will definitely make the world a better place.
Online or wire transfers are known to be more efficient than the traditional way. However, for international transactions, it may take a week or longer.
Transferring money through crypto exchanges does not require the processes as banks do. It is more efficient as there is no need to line up or fill out forms, especially for international transfers. And, what's good about it is that you can easily track or store the transactions in the blockchain.
Most purchases nowadays are made online, especially during Holidays. There is no need to drive from one store to another to purchase the products that you need. However, traditional online purchases do not always guarantee security from potential frauds.
Cryptocurrency reduces the risks of fraud, making online shopping more secure for both the buyer and the seller or merchants. Transactions using crypto are permanent. In addition, cryptocurrency creates greater opportunities for small as well as worldwide businesses.
Traveling to other countries with money cards or cash cards can be quite dangerous. Hence, cryptocurrency makes international money transfers safer. It reduces the possibility of potential fraud with the benefit of eliminating costly charges and exchange fees.
One of the major issues of some of the countries' fiat currencies is their instability. The value changes from time to time. Some are even subject to inflation rates.
Nowadays, crypto is accepted worldwide thus, improving lives through cryptocurrency. It enables you to convert your virtual currency to your international currency with lesser charges. In addition, it provides stability to countries that are economically volatile.