What is Cryptocurrency?
Ever since the introduction of Bitcoin in 2009, the concept of Cryptocurrency has established itself in reality. The value of Bitcoin peaked in 2013, and took the market by the storm. Many people started investing in Bitcoin. It is essentially a decentralized currency, which uses peer-to-peer technology for easy transactions.
There is neither any central authority involved in its regulation, nor any financial institution through which the transactions are made. The value of Bitcoin had reached up to $2 billion within a short span of two months. Analysts estimated a fall in the use of the conventional currencies if Bitcoin kept pacing ahead. 25 Bitcoins are created every 10 minutes. At this rate, there will be 21 million Bitcoins by the year 2140. Under no circumstance can it be denied, that Bitcoins and the other forms of cryptocurrencies make financial transactions way hassle-free.
What makes Bitcoins easier to use?
Bitcoins and other forms of cryptocurrencies have few features which makes them easy to use.
- Speed of transaction: Ever since online money transactions have become a phenomenon, the speed of money transfer from the sender’s account to the recipient’s account happens within a few minutes of pressing a key. However, the transaction happens through banks or other financial institutions involved in the process. Verifications at various levels seem to deter the speed of the process. On the contrary, the transaction of cryptocurrencies takes place within seconds.
- Nature of transaction: The transaction of Cryptocurrency takes place without the interference of any central or legal authorities. It happens unregulated, hence there are no extra charges deducted for transactions. The transactions are very difficult to be hacked.
- Individual Ownership: The owner of the Cryptocurrency is not answerable to any form of authority; neither do they have to pay taxes for having acquired such wealth. During any national economic crises, the government can claim a portion of your wealth deposited in the banks or such other financial institutions. However, in case of Bitcoins, there is no claim of any other party on the acquired Cryptocurrency of an individual. It solely belongs to them.
- Adaptability: It is very easy to start mining Bitcoins today. There are various apps available in the market who seek to make this process smoother and hassle-free for the beginners. Check out the https://crypto-engineapp.com/ to learn more about it.
Will Bitcoins be widely accepted?
Given the fluctuating worth of Bitcoins, it has been a little difficult to predict what the future holds for the cryptocurrencies. Transactions have become increasingly cashless. People prefer payment in either card or through online payment. Paper currency is almost about to be replaced. Contrary to the Fiat currency, the Cryptocurrency dodges any government supervision, leading to various illegal activities.
If these were to continue, soon the credibility of the Cryptocurrency will be put under scrutiny. Thus, in order to solve this crisis, there needs to be an addition of credibility to the entire functioning of the Cryptocurrency. There is an urgent need of a verified exchange traded fund (ETF). Bitcoins, accumulated over a large period of time, amounting to a great wealth are susceptible to getting lost in case of a computer crash, or deletion of files. Once these loopholes are looked into, it will be easier for investors to keep faith in the Cryptocurrency, thereby strengthening their value in the market.
With a system set up to eliminate the fraudulence that takes place involving the Cryptocurrency, and curb the illegal practices due to the unregulated transactions possible, it is possible that Bitcoins and other cryptocurrencies be widely accepted. The fact that they do not fall under the Government purview makes them unacceptable in the regular market. Once a resolution is reached regarding this ground, it will be easier to incorporate Cryptocurrency transactions in all spheres of life.
There are already few businesses that have started accepting payment in Bitcoins. They have come to an understanding with their respective Governments. Wading through the difficulties of using Cryptocurrencies, when solutions will finally be reached, they will be accepted widely in place of fiat currency. Ever since the advent of technology, paperless transactions have been the ultimate goal.
