Introduction to Cryptocurrency
Cryptocurrency is a decentralized digital or virtual money, reinforced by blockchain technology. It uses cryptography for security. Blockchain is a digital record of transactions. Cryptocurrencies are one of the most searched topics worldwide. It has now become one of the investment horizons for today’s tech-sophisticated investors. There are over 4000 cryptocurrencies in existence . Some of the most common cryptocurrencies are:
- Binance Coin
With the growing attention of the investors for cryptocurrencies, it is essential for all to understand the basics of such digital currencies. With time and development in technology, cryptocurrencies are made available for day-to day transactions just like the physical money. Market Capitalization of Bitcoin while writing this article is $682.15 billion. In this article, we will discuss about the benefits of cryptocurrencies.
Benefits of Cryptocurrency
Normal currencies are regulated and centralized by nations’ respective government or central bank. Unlike regular currencies, cryptocurrency has a autonomy of operation and existence. It has a virtual existence and has no authority to regulate the transaction. It is a decentralized digital currency and reinforced by blockchain technology.
Easier International Exchange i.e. No Barriers
Cryptocurrencies are autonomy in nature and has a virtual existence. There is no barrier for its operation. There is no restriction to trade and making any transaction using cryptocurrencies only requires computing technology and access to network. No geographical barrier can hold this. Decentralization supports network operation. Hard currencies requires a lot of regulations, fees, commissions and paperwork for cross border operations but cryptocurrency is a straightforward peer-to peer transaction with no middleman and international regulations.
Every physical money transaction has some related reference document. Bank, revenue department, government offices, credit agencies, reports, money transfers etc. have some record each time the transactions are made. For business transaction, it is even more difficult to ensure confidentiality.
Cryptocurrency transaction is peer-to peer transaction i.e. unique exchange between two parties in terms of negotiating conditions. As there is no regulatory bodies to control cryptocurrencies movement and no middle person to facilitate, cryptocurrency transactions are related to only the participating parties and there is no chance of their part exposure to the transaction. But the series of events are irreversible and recorded in the form of block.
Excess to Everyone
Cryptocurrencies require a computing device and connection to network for transaction, hence anyone with this availability can excess the cryptocurrency. It is available to everyone without much regulatory obligation. Apart from this, this is not bound to any geographical borders and business around the world are making cryptocurrencies-friendly eco-system.
As cryptocurrencies are likely decentralized and follow no time zone, it allows transaction to happen 24*7 from any individual.
Cryptocurrencies do not inflate like fiat currency. The quantity of cryptocurrencies that is to be mined is fix hence, there is no impact like increase in value due to scarcity. For instance, there are 21 million Bitcoin that will be in existence. Similarly, there are 94 million Lite-coin in circulation. Unlike physical currencies, regulatory bodies cannot affect the supply by printing it and circulating it in the market as per the need.
Hence, there won’t be any affect of Inflation in cryptocurrencies.