Introduction
Cryptocurrency is imminent and the next beautiful thing to the world. Why walk around with money while we can trade in Cryptocurrency? Cryptocurrency has presented an opportunity for dynamic investors/people to reap big from their portfolios. The world is digitized and embracing technology to the last core. Why go hustle trading normally, whereas you can trade at the comfort of their smartphone and reap huge profits and winnings? Cryptocurrency is the future, and behold; the future is imminent for the world to embrace it (Morton, 2020).
Money is defined by what it does, the most basic definition. Money was created to address the shortcomings of the barter economy. It was created to meet specific needs and has continued to evolve since then. As the global adoption of Cryptocurrency accelerates, the big ultimate question is whether a cryptocurrency will be the shape of things to come. Money serves several functions in an economy, including acting as a global currency, a unit of value, and storing value. A monetary system is employed (Goel, 2020).
However, in recent times Cryptocurrency has emerged and is causing shockwaves to the market and the world. With technology came crypto currency, One can’t be forced to accept it as legal tender like dollars or pounds or rupees, but some major companies, including Tesla, still accept crypto. An important function of money is its ability to fix the value of goods and services, and Cryptocurrency is a more revitalized mode and efficient method than money. For the longest time, money has been the medium of exchange over the globe. However, as days and years pass, things are changing to Cryptocurrency.
Cryptocurrency
Ever wondered what exactly is a cryptocurrency? Cryptocurrency is a digital asset that functions as an exchange medium in various cryptographic transactions. This means of exchange also aids in the management of the introduction of unique currency units. Few individuals and businesses are familiar with the notion despite the numerous discussions and press releases regarding cryptocurrencies. According to Fang, et al, (2022), The more people must become aware of Cryptocurrency’s impact, the greater the impact and applications. Maybe you are wondering what the examples of Cryptocurrency are? Bitcoin is just but an example of the cryptocurrency trade exchange medium. Cryptocurrency is a digital currency released in 2009. Since then, many other cryptocurrencies have emerged and are making their way around the market.
Cryptocurrency is a decentralized digital currency secured by cryptography based on blockchain technology. Cryptocurrency is a decentralized, highly encrypted digital trade that uses cryptography as an exchange medium. The transactions are recorded on a digital ledger known as a blockchain, which is used in the mining process to track Cryptocurrency’s activities (Miraz, 2018).
Cryptocurrency’s essence comprises three fundamental components: blockchain, decentralization, and cryptography. The term “blockchain” refers to a distributed digital ledger to which only authorized users have access. This ledger keeps track of transactions involving various assets, including money, real estate, and even intellectual property. Users share access, and any information sent is clear, instantaneous, and “immutable.” The ordinary money we use is centralized, managed by authorities such as banks and lending institutions. In the case of cryptocurrencies, decentralization means that no similar authority can be held accountable for overseeing the growth and fall of a particular cryptocurrency.
According to Makarov, (2020), the world has been rapidly revolutionized by technology. In all of their pursuits, everyone uses technology. Whether it be bill payment, Foreign exchange trading, or arguably everything else that money can do. Thanks to technological advancements, people may now trade from the comfort of their mobile devices, PCs, and iPads. Cryptocurrency is arguably now controlling the globe, with investors like Elon Musk gaining notoriety. As quickly as Cryptocurrency is spreading worldwide, so are the benefits and drawbacks. Because of its extreme volatility
Advantages of Cryptocurrency
a.) Bitcoin is self-contained digital money that does not require the use of a bank to store or conduct transactions. It’s comparable to physical coins because they have value and can be traded for services and goods online and used as a growing investment. Additionally, Bitcoin can be transferred from one wallet to another, whether on a mobile phone, a computer, or a cloud. Bitcoin is immune to forgery (Omarova, 2019).
b.) The second benefit of Cryptocurrency is transaction speed. The ease and efficiency of trading is none to compare to. One day, your share is trading at 100 dollars the next day; it’s 130-200 dollars’ worth. Arguably, if you are a short-term investor, this is your choice. You ostensibly want to send money to someone in the United States. Cryptocurrency is here to assist you in this endeavor. There are just a few options to transfer money or assets from one account to another in seconds. The majority of financial transactions in the United States are settled in three to five days (Sichinava, 2019). It normally takes at least 24 hours to complete a wire transfer. Stock trades take three days to settle. Everyone is usually busy doing something, so having an effective and convenient way to send and receive money from the convenience of your smartphone would be irresistible. When the network confirms the block containing your transaction, it is fully settled, and the money is accessible to use.
c.) Thirdly, The popularity of bitcoin is growing by the day. Technology and global network connectivity have made this possible. Almost every home has internet connectivity, and anyone may use cryptocurrencies. All you need is an internet connection and a computer or smartphone. When contrasted to setting up an account with a typical financial institution, the process of creating a digital wallet is relatively fast. There is no identity verification. There is no credit or credit report. Unbanked people can use Cryptocurrency to get financial services without going via a centralized institution. Additionally, people who do not use basic banking services can use Cryptocurrency to complete online transactions or transfer cash to loved ones.
Cryptocurrency is yet not considered for this. Despite the numerous obstacles, Cryptocurrency is already being utilized as a form of payment, albeit on a small scale. Investors have rushed to the cryptocurrency sector in record numbers. PayPal and other payment providers have recently incorporated bitcoin functions into their apps. Bitcoin and Ethereum are two of the currencies that PayPal users can utilize. Countries worldwide recognize bitcoin as a medium of exchange, thanks to the influx of investors. El Salvador is a good example of Cryptocurrency’s popularity. The country has made Bitcoin legal tender, making it the first in the world to do so. Similarly, Malta and India are striving to integrate Cryptocurrency into everyday life. All of these examples demonstrate how Cryptocurrency is making inroads into ordinary transactions.
Why Technology and Cryptocurrency?
As we indicated at the outset, the nature of money is continually changing. Money was only available in physical form in the past, but we can’t picture a world without digital transactions today.
As a result, it should come as no surprise that cryptocurrencies will be used as money at some point in the future. People can now use cryptos to pay for coffee or a cab journey. It simply appears to be a matter of time. The world cannot wait for Cryptocurrency to become a legitimate form of payment. On a secure and reputable platform like ZebPay, you may begin trading in crypto right away.
As the global acceptance of Cryptocurrency accelerates, the main issue on everyone’s mind is: could Cryptocurrency be the future of money? Besides this question, another arises, Why Cryptocurrency? As much as Cryptocurrency gains prominence, what factors make it enticing to the market? Every investor wants to make profits from their investments. Cryptocurrency offers just that. As much as uncertainty looms over this currency, supernormal profits remain enticing investors. No investor would pass up the chance to earn profits from an investment. As already detailed, Cryptocurrency offers investors and traders an opportunity to sit back and watch your money grow. What better way to earn money than relax in the comfort of your device? (Yilmaz, 2018)
Conclusion
Cryptocurrency has shown all indications that money is slowly losing its ground. Technology has enabled Cryptocurrency at an astronomical rate. As days go by, the world is embracing technology. Gone are the day’s people used to move from one spot to another to access services. People no longer have to go to banks as they can easily access these services from the comfort of their devices. Additionally, profits remain a key concern for investors/people. A chance to make supernormal profits remains eminent in the crypto world. Crypto has to precisely annotate the thought that money is slowly losing ground to Cryptocurrency.
References
Fang, F., Ventre, C., Basios, M., Kanthan, L., Martinez-Rego, D., Wu, F., & Li, L. (2022). Cryptocurrency trading: a comprehensive survey. Financial Innovation, 8(1), 1-59.
Goel, S., & Mittal, H. (2020). Economic, legal and financial perspectives on cryptocurrencies: a review on cryptocurrency growth, opportunities, and prospects. World Review of Entrepreneurship, Management, and Sustainable Development, 16(6), 611-623.
Makarov, I., & Schoar, A. (2020). Trading and arbitrage in cryptocurrency markets. Journal of Financial Economics, 135(2), 293-319.
Miraz, M. H., & Ali, M. (2018). Applications of blockchain technology beyond Cryptocurrency. arXiv preprint arXiv:1801.03528.
Morton, D. T. (2020). The future of Cryptocurrency: an unregulated instrument in an increasingly regulated global economy. Loy. U. Chi. Int’l L. Rev., 16, 129.
Omarova, S. T. (2019). New tech v. new deal: Fintech as a systemic phenomenon. Yale J. on Reg., 36, 735.
Sichinava, D. (2019). Cryptocurrency–A future medium of exchange.
Yilmaz, N. K., & Hazar, H. B. (2018). Predicting future cryptocurrency investment trends by conjoint analysis. Journal of Economics Finance and Accounting, 5(4), 321-330.
write