As we know that cryptocurrency is digital currency and uses cryptographic techniques which makes it secure, but the question is that is cryptocurrency the future?
The first cryptocurrency named as Bitcon, was made in 2009. As time passed it started to get more attention and attraction of followers. Deutsche bank system said that the money system currently being used is fragile. According to them, there are chances that the number of users who use digital currencies can surpass 200 million. There are chances that cash will be replaced with digital money soon due to the anonymous nature of crypto transactions.
Cryptocurrency is currently a $200 billion industry. The users of bitcoin and alternative coin transactions grow up to 60% every year. We can consider cryptocurrency to be an investment in financial systems known as Decentralized Finance. The accessibility to this system is much higher because it enables anyone to connect to it. The reason is because it is built on public blockchain.
The nature of transactions is parallel because they are available publicly.
Practical advantages applied to cryptocurrency eco system:
The practical advantages that are being applied to this ecosystem are:
1) Elimination of third party:
Various online stores provide the facility to use bitcoins or other variants for purchasing items. Due to this facility, direct purchase can be done and there is no need to involve any third party in the transactions. This is a very important feature of cryptocurrency.
2) Limited number of cryptocurrencies available:
Various cryptocurrencies namely Bitcoin, Etherium and Litecoin are very limited in number. The lesser the amount, the greater the value. The limited amount of these cryptocurrencies makes them much more valuable. So, we can say that the limited number of these cryptocurrencies has a great impact on their value.
3) Cryptographic techniques:
Instead of using the user’s account info or name, cryptocurrencies use digital signatures for transactions which make them much more secure.
4) Anonymous nature:
As the personal details of the user are hidden, the anonymous nature of these transactions makes them much more significant.
5) Correlation between bitcoin and money:
The attributes of bitcoin are similar to the attributes of money. So, we can use bitcoin as an exchange medium.
Cryptocurrency is becoming the future:
Many surveys have been conducted. According to one of these surveys, 18% students in USA once owned or are currently owning one digital currency at least.
Just like every other thing, cryptocurrencies are both good and evil. Many people are only interesting in the speculative trading of cryptocurrencies, so they do not get to understand the real value of cryptocurrencies.
There are predictions that the increasing demand of cryptocurrencies will result in the death of plastic cards such as debit or credit cards. The only similarity between plastic cards and crypto is that both involve the user’s consent in transactions
So, it is not wrong to say that cryptocurrency is the future and the world will look a lot different once cryptocurrencies are integrated in our lives