What is cryptocurrency?
A cryptocurrency is any digital unit of value like a token, coin, or coin base that represents the owners and the holders of that specific asset within their financial system. It can be defined as a physical object such as a piece of gold, a paper bill, etc.
At its most basic level, it can be considered a medium of exchange between two people who have different amounts of resources, e.g. money for trade, property, etc. In more complex cases the coins used to mint an asset are based on the monetary system that has been introduced at the time this was created.
These coins have become digital units that represent money for sale in the market place with all other types being dependent on these coins to operate properly. This also includes assets that were originally non-monetary like real estate, stamps, bonds, etc.
There is no central bank for cryptocurrencies,
but there is a fixed amount of bitcoins available to everyone who wishes to buy/sell it; they are called bitcoin (BTC). There are several forms of cryptocurrencies today including traditional coins and tokens and some of the newer kinds include “blockchains” which are the basis on which cryptocurrencies are currently designed. Blockchain technology is basically a set of rules that govern the security of information.
The way this work is that as transactions are completed in the blockchain one ledger is generated by miners that check transactions that have taken place and then add them to new blocks. Each block contains records of previous blocks in its sequence. On receiving the new block, miners first verify each record and if any changes are detected then a new process starts from the initial transaction, and so on.
All blocks in this system will be cryptographically signed using public keys, private keys, and even encryption. So why are cryptocurrencies so important to our society in general? Well, when we want to carry out a transaction, we need to do it securely as soon as possible.
We would prefer not to spend too much energy or money to do this because it is expensive, requires us to trust the person whose account we are dealing with, and may not be quick as they might not pay you back in return! And although banks have made many efforts in recent years to keep the accounts safe, this process takes time.
Therefore many people, especially those living outside cities, try to use cryptocurrency and especially Bitcoin to transact safely and efficiently. However, why should someone use Bitcoins when their home does not have access to cash and credit accounts? People with little cash or even zero have to resort to getting rid of fiat currencies, so why not use cryptocurrencies? The main reason behind that is that cryptocurrency is much cheaper than traditional currencies as well as quicker than regular banking systems.
You can get your hands on Bitcoin for only $1000 and while the current price of BTC is around $89880, this still means that the owner could end up making thousands of dollars per year just by spending their money on Bitcoin. It has a growing list of advantages over conventional currencies like you pay less than other payment methods like credit cards or debit cards.
One advantage is that crypto allows a user to manage more than just their finances. A small business owner may choose to sell his shares to earn extra income as he can easily track the share price and see which parts are trading at a high volume. He can even sell items from the company through an online shop.
One of the Popular currency
Within a few years, back cryptocurrency has become one of the most popular currencies in the world. It is important to note that in the countries like USA, UK, Europe, etc where the laws are very strong cryptocurrency can be used properly but in developing countries such as Pakistan there is still no law about the use of cryptocurrency.
Now the government of Pakistan and many other countries of the world are thinking about the use of cryptocurrency. These countries are also thinking about the amendment in their rules to allow the use of cryptocurrency.
Who is accepting it
The above-stated currency is accepted by most worldwide hotels, multinational companies like cars are accepting this currency like any other and at a low level, and some types of trades are also acceptable. But it can be safely said that worldwide trade of the above-mentioned currency is yet to be awaited.
Stance of China
China has so far been well advanced in its public sector response launching domestic trials of the government-backed digital renminbi (RMB) in 2020 and also beginning to clamp down on Ant group, the country’s biggest finance-focused hi-tech company.
Many other countries like Europe are seriously thing whether and how to follow China by launching official digital currencies. They are also aware these are decisions with important implications for the wider international financial system such as the future role of the Dollar and other reserve currencies and their part in supporting international trade and finance.
The cryptocurrency gain and crash is also depending upon China’s reply worldwide. It is also important for Europe, the USA, Canada, and G-7 or G-20 countries regarding the response of China over cryptocurrency.
Whether it is a resident of London in England or a resident of San Francisco in the USA, Bitcoin is now an established part of the global economy and is accepted as a standard form of money by almost everyone.
While many believe that they have missed out on a huge opportunity to prosper financially for a long time, others prefer to wait and watch before investing their funds.
For the such individual, Bitcoin has proved to be a rewarding investment. Since it is a decentralized ledger that can store enormous amounts of information about every single transaction that has ever happened, the best thing for overall security is to use cryptocurrency. If you are ready and able to invest, then go ahead and do so now!