Financing is a continuously evolving field which seeks convenience and efficiency for currency use. It develops new methods, techniques, systems and platforms to meet such goals. Until near the end of the previous decade, cryptocurrency have begun to rise. Bitcoin have started it all and many other digital coins have followed, as well as Bitcoin Circuit and other automated ways of handling the revolutionary currency type.
What is Cryptocurrency and how it all Begun
In a nutshell, cryptocurrencies are digital currencies or money that don’t have physical forms. Most cryptocurrencies run on a decentralized manner, meaning they are not controlled by banks, government entities or companies. They usually run on the blockchain, which is a peer-to-peer network of transaction records which cannot be edited or deleted by any means. The blockchain also solved the problem of possible counterfeiting and double spending, since it verifies every single transaction to be legitimate.
Cryptocurrency began last 2009 when Satoshi Nakamoto have launched Bitcoin or BTC. It’s a decentralized cryptocurrency which people can mine digitally by solving highly complex mathematical algorithm. Hence, people today requires the use of computers with impressive hash power to mine BTC. BTC runs on the blockchain, and carries perceived value from the people. If it looks or performs well on the market, its value increases, and its value drops when perceived otherwise.
Its value is also affected by the law of supply and demand, since there’s only 21million BTC that can ever exist. And in the third quarter of 2019, there are already about 18 million BTC circulating in the market.
Today, there are already around 2,000 known cryptocurrencies available. Some popular examples are litecoin, ethereum, dogecoin and dash. They come after bitcoin, and each boasts certain features and capabilities.
How Cryptocurrency have Revolutionized Financing?
With its nature and functions, cryptocurrencies is said to be the biggest financial innovations the world have seen. It promises digitalized transactions, which brings the idea of completely cashless commerce on the future.
Think of simply bringing digital keys when you buy different products or services anywhere. That means no hassle of holding physical coins and bills. It would minimize the cases of theft as well, as long as you’d safely hide your digital keys.
Aside from being a currency, cryptos are also assets for investments. That’s because of its volatile value which rises and drops on a given time. So when you acquire certain amount of BTC today, for example, you can trade it up later on and get substantial returns on investment.
No wonder why many people try their best on investing or trading cryptocurrencies, some are also willing to spend and invest on powerful mining machines to get cryptocurrencies first hand. Companies which develop mining, trading and investing platforms are also there. Meaning, they make cryptocurrency more accessible for people who don’t know much about computer coding and financing.
And as expected, government entities and banking institutions are also lured towards cryptocurrency assets. Today, experts are studying on how to incorporate cryptocurrencies for practical use, or how to stop it from happening because of its risks. And they all have different goals and purposes which drive their research.
You see? Financing have certainly evolved and revolutionized for the benefit of everyone. But it still has a long way to go towards the future. It would continuously reshape itself depending on the needs and preference of people too.
Whatever happens to financing and currency, just be sure to keep yourself updated with it. That would help you fully reap its benefits, and prepare for some problems that may come.