Cryptocurrency Definition – Superstorer

For years after the evolution of money, fiat currency has been the major medium of exchange. Before the introduction of digital money paper money and coins has been the major and only contributors to trading. But with the advancement in technologies and the introduction of internet money this scenario is gradually changing. Crypto or Cryptocurrency is a form of digital or virtual currency that is stored in a digital wallet and is used for online trading. It is a form of digital cash used as an online medium of exchange using a chain of computers. With the advancement in technology and evolution of cashless payment across the globe the interest of people to invest digitally has increased, assisting crypto gain ground worldwide. Crypto is a digital asset that helps individuals in investing and trade safely online without the physical involvement of cash. With the escalating popularity, crypto has become trading and is also used for cross-border businesses. It is based on blockchain technology to record all the transactions using a ledger system and is outside the administration of any central authority or government and thus does not come under any monetary policy guidelines. Crypto is basically used for online transactions like buying and selling goods but people also invest in crypto as they do in property or any other rare precious metal like gold, silver, platinum, etc. Earlier known as Cyber Currencies the concept of cryptocurrencies evolved from ecash in the 1980s to b-money in the late 1990s and later became popular in 2008 with the creation of Bitcoin. Since the 1980s several attempts had been made to make internet money popular and acceptable to the mass. Digital money gained confidence and popularity after bitcoin dominated the market as the most widely used cryptocurrency after 2010. Crypto gradually gained ground after 2010 and as the demand increased the price increased making it an investible entity. Although not being backed by any controlling organization crypto is lately seen as an investment with the high financial risk involved which led to its ban in several countries including China, Russia, etc. bitcoin is the most commonly used crypto and today its value is highest in the crypto market. The reason is its popularity, high nodal value, and easy exchange possible. Its increasing demand and limited supply have led to a steep increase in its value. The crypto market is recently under a state of instability due to various reasons like the ban of crypto in various countries, while several others are in the process of legalizing it. The change in interest rates of banks across countries in turn is affecting the investment by the investors. There are several advantages as well as disadvantages when it comes to investment in cryptocurrencies. The positive side of crypto includes its easy and smooth transaction helps in efficient and fast cross-border business. Being an online mode it is available whenever it is required for trading without any delay. But being internet money it is always under the threat of being hacked which prevents some of the masses from investing in crypto. Being backed by any government or central regulatory authority may gain the trust of people and reduce the financial risks involved in the crypto market which may further increase the demand for the crypto worldwide.

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