Cryptocurrency is the revolution in the field of currency which is being used in trade and services. The money is neither controlled by the bank, nor by the government. It is also tax-free and there are no transaction fees either, even the transactions are also anonymous and secure. In the following essay, I shall explain how it works, what is its importance, what are its impacts, and how it is legalized.
What is Cryptocurrency?
The concept of Cryptocurrency is given by Satoshi Nakamoto on November 2008. Before further moving in this essay, I would like to explain how the things really work in Cryptocurrency. The “coins” are produced through a procedure called Mining. Mining is the process in which the computer solves complex mathematical problems, which are generated when the user make any transaction.
With the passage of time, More bitcoins are mined, increasing the level of problems and also increasing the time used for solving those problems. Nowadays, people use specialized AISC’s to mine the coins faster. A net worth of 120 billion dollars bitcoins have been mined so far.
Importance of Cryptocurrency:
The biggest importance of Cryptocurrency is that it works on Ledger system, which means no one knows your I.D. Even your credit card and debit card code can be cracked in few seconds, but your account can’t be robbed even by the most powerful governments of the nations. Bitcoin gives you a 20 digit lock key which you can save in no. of locations. As mentioned earlier in the essay that Bitcoins has been mined has a net worth 120 billion dollars, it also shows that the Bitcoins can be used as a spare part as a demand for gold for the investors who are turning former.
We all know that Digital currency is the future of the economy. From the concept of this virtual reality, Bitcoins are leading in the market of cyberspace as it is free from the government but is under peer to peer internet protocol. So, if this is recognized at the universal level, the accounts will no longer remain frozen as everyone could access the Cryptocurrency and store without limits.
Impact of Cryptocurrency:
With the concept of Cryptocurrency, The whole world is curious that what this concept can do in near future:
- The economists have said that the blockchain concept of Cryptocurrency is the drive to innovation in many industries in the near future.
- Every financial institution is showing their willingness towards the concept of Cryptocurrency as they believe that the concept of blockchain is worthy enough.
- This concept is not just welcomed by the customers but also many business institutions are using bitcoins for trading.
- The Cryptocurrency has also some negative impacts as Cryptocurrency is decentralized, so it is an invitation for the black-hat hackers who can steal the data and use your money.
- There is some sort of danger to the banking sector also as they have also no control over this trade.
At the end of the essay, I would conclude by saying that Cryptocurrency is the future of currency and it surely will be legalized in the near future. As the control is high, investment is safe and the security measures are also taken care of, Cryptocurrency will surely affect the economy of a nation. So it is that revolution which can’t be stopped by any forces and surely it will play a huge role in the near future.