Cryptocurrencies are digital assets built with cryptographic protocols designed to work as a medium of exchange for goods and services. It is a decentralized digital exchange that uses cryptography and has its transactions recorded in a digital ledger called blockchain. These transactions are tracked by a process known as mining.
Bitcoin, the first decentralized cryptocurrency was created in 2009 by Satoshi Nakamoto. Since its release, over 4000 other cryptocurrencies or alternative variants of bitcoin have since been created. It is reported that over 3000 cryptocurrencies are used all over the world at the moment.
This computer and internet age has come with various revolutions and tremendous changes as to how daily transactions and activities are carried out around the world. There has also been a search for an alternative form of currency. These changes and innovation have led to creation of cryptocurrencies in the financial sector.
Cryptocurrency is free from the control and is independent of established financial institutions such as the central bank and governing authorities, this has made it highly attractive and sorted out by the general public. Digital payments are also clearly on the rise, individuals now possess cell phones that can be used to keep digital wallets which carry cryptocurrencies. The introduction of crypto ATMs has helped solve the problem of banking barriers. Users just need a cell phone app to scan a QR code to send and receive any crypto currencies which can be exchanged into fiat money of any currency and then withdrawn through any crypto ATM.
Some economic analysts have predicted the possibility of crypto being floated on the National Association Of Security Dealers Quotations (NASDAQ) which will add credibility to cryptocurrency and aid the use of blockchain as an alternative for regular currencies. Some specialists feel the missing piece to crypto becoming a conventional currency is a verified exchange traded fund (ETF),which will make it easier for stakeholders and individuals to invest in cryptocurrency
With the rate of which cryptocurrencies are flourishing, it isn’t only a possibility but it’s most likely going to be the money of the future. Because of its increasing usage and popularity, crypto currency is expected to grow exceptionally. Also the first investor for Snapchat, Jeremy Liew forcasted that bitcoin will hit an estimated $500,000 by 2030. The fact that companies and tech-savvy individuals are paying attention and have shown great interest in cryptocurrency shows that there’s a great future for it.
Nevertheless, there’s been news that digital currency balances can be wiped out by a hack, computer crash or other accidents due to the fact that cryptocurrencies lack a central repository.