Why is the world moving towards Cryptocurrency?

• Toshendra Kumar Sharma
• February 05, 2018

If something has managed to garner the attention of masses and the classes, then it is cryptocurrency. It’s an undeniable fact that the world is talking about it. Despite starting off in 2009 with Bitcoin, today we have many other digital currencies in the market. Some of the prominent ones include Etherium, Ripple, Dash, Komodo and many others. But, the one that still leads the market is Bitcoin, and many others are on their way. The reason we are having this discussion is to understand why the world is looking forward towards this financial revolution.

Before heading further, let’s understand what cryptocurrency is?

Cryptocurrency overview:

It is a digital currency which s managed using encryption technique popularly known as cryptography. Bitcoin pioneered the league of cryptocurrency, and it started off a digital financial revolution in the year 2009.  Although Bitcoin started off with as low as .01$, today the price of Bitcoin is skyrocketing.

The high-rise in the Bitcoins and similar cryptocurrencies have grabbed the attention of the global market. Many nations are now working on introducing systems and legal framework regarding cryptocurrencies transition action. The major reason behind growing inclination towards these alternative currencies is that the government does not control them. This means that it is free from third-party interference. Apart from this, there are many other reasons which have made the alternate currencies sell like hot cake.

However, we still have many questions unanswered like, how long is this currency going to survive, is this a bubble which is soon going to burst, will it become a part of the mainstream economy, etc. Well, the questions remain unanswered, but for now, the truth is that the Bitcoin and other such currencies are here to stay.

Reasons for growing inclination towards cryptocurrencies:

Well, the world economy is like a glass jaw, one punch and it shatters, but this doesn’t mean that we cannot have new provisions which can improve the status. Cryptocurrencies offer a greater set of advantages over fiat currencies. They are safe, free from any control and thus have become popular. Some of the other advantages which it offers that has made it so popular include the following :

• Fraud-resistant: Since the cryptocurrencies are digital and cannot be revered arbitrarily by the sender, these are free from fraud and counterfeiting.
• Identity Theft: Well, one of the reasons which make them famous is that it allows the user to send exactly what they want to send to the seller without any other information. Whereas if this is compared with the credit card payment mechanism, then here the seller has the complete access to your card and enough time to forge it.
• You own it– The biggest asset about cryptocurrency is that they are completely owned by the owner. If you compare it with another mechanism like Paypal, then the information is shared with the third party. But, with cryptocurrency, you own both the public key and private key which means you are the sole owner of all the information and thus, is free from any sharing.
• Public Key- It is a bank account number which is known to others so that people can send money.
• Private Key- It’s like OTP or One Time Password stored in cryptocurrencies wallet.
• Lower Fees: This is yet another popular reason why cryptocurrencies have gained growing inclination from people. Usually, there is no transaction fee for the exchange of cryptocurrencies.

Instant Transactions- The strongest point about cryptocurrencies is that the transactions are quick. In case of the normal transaction as we go through a bank, which involves a lot of time in the confirmation of the transaction, and sometimes it may result in payment failure. However, when it comes to cryptocurrency, then the transactions are faster. The P2P or peer-to-peer nature of transaction of cryptocurrency offers huge sets of benefits as compared to the traditional mode of transaction. Thus, it is becoming a popular choice amongst the people.

Takeaways– Well, cryptocurrencies are not only about good things, but there are also various factors which make its use questionable. Its decentralized nature, lack of government control and other legal frameworks are a few points that need an answer. But, for now, the perspectives look positive. With the right approach and new cryptocurrencies surging in the market, it is here to stay. Many nations are working on creating frameworks to streamline the process of transactions. It is to ensure that cryptocurrencies can become a part of the mainstream economy.