Cryptocurrency is nothing but assets that are kept in digital format. As far as the name is concerned, it is originated by the transaction security that is highly encrypted. The name itself suggests that all the transactions made are completely secure.
Wondering how cryptocurrency is different from the traditional ones? The answer is simple, decentralization of the entire process. When you make a transaction through bank or cash, it is controlled by the government or a private organization.
Whereas, cryptocurrency is limited in number. Hence, its value keeps increasing or decreasing – similar to gold or silver.
What Is Cryptocurrency Mining And Why Is It Done?
After learning that cryptocurrencies are limited, one might wonder how these digital assets were created in the first place? And isn’t it possible to generate more? Yes, cryptocurrencies are created through a process called mining.
This mining process is very complex and it is done through powerful computers. It involves decentralized networks across the globe to secure and verify blockchains, which are virtual ledgers that keep record of each cryptocurrency transaction.
There are many cryptocurrencies that manage and record their transactions via blockchain technology. Hence, this entire process is absolutely secure, making your investments worry-free.
Understanding Crypto’s Market Value
The market value of cryptocurrency as of May last year was $1.7 trillion. There are more than 10,000 listed cryptocurrencies and increasing on a daily basis.
Bitcoin is one such cryptocurrency that has a massive chunk of share in the market value, amounting around $650 billion. Ethereum and Tether are the next two popular cryptocurrency that have acquired most of the market value.
There are many companies including Overstock.com that have started to accept Bitcoins as a currency since 2014. Many more companies are following the footsteps and acknowledging bitcoin and other cryptocurrencies as digital assets.
How Bitcoin Became Popular
The world faced a major financial system crisis in 2008, which marked the year of crypto’s development via blockchain technology. The concept made people change their perspective about how they look at money.
Bitcoin became the best investment plan, according to Forbes in 2013. Fast forward today, it has successfully become a household name. There are more than 2,300 businesses in the United States that are accepting Bitcoin, according to Deloitte.
Why Are People Investing In Bitcoin?
Considering the secure nature of the blockchain technology, Bitcoin doesn’t involve anyone in the middle. It is similar to peer to peer transaction, which makes the transaction cost minimum.
For instance, if you want to send money via PayPal or any other bank internationally, you might have to pay an additional amount. However, Bitcoin or any other cryptocurrency completely wipes out the middle-service to ensure that there is no or minimal transaction cost.
Moreover, there is transparency in the process and the transaction takes place quickly, without any delays that you might face at the banking system sometimes. Furthermore, every time you make a transaction, the records are maintained in a virtual public ledger. It means the data can’t be counterfeited or forged.
In conclusion, cryptocurrency is the future when it comes to money transactions. It is recommended to start investing now but on a trusted platform such as WazirX. You can simply trade, sell, and purchase cryptocurrencies like Ethereum, Bitcoin, and more. If you have any questions regarding cryptocurrency, feel free to ask in the comments section below.
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