Cryptocurrency was first created by Bitcoin in 2009. Today, hundreds of other alternative variants of Bitcoin, or other cryptocurrencies have been created and they are known as Altcoins. A cryptocurrency is a digital or virtual currency which is designed to work as a medium of exchange. It uses cryptography, or encryption techniques, to secure, regulate and verify transactions operating independently, without the help from a central bank. They exhibit properties that are similar to physical currencies like coins and banknotes but are much easier to use as they are not only hassle-free but also allow instant transactions and transfer-of-ownership.
The experts at do my assignment explain cryptocurrency with the example of the scenario of the Indian Subcontinent in 2016. On November 8, 2016, India underwent a major shift in its economy when INR 500 and 1000 currency notes were declared demonetized by the Prime Minister of India, Mr. Narendra Modi. Had the public taken a stand against this economic decision, with a clear consensus that they would still use the said abovementioned bank notes, even after currencies were considered invalid by the banks, physical exchange of the same would still have been in use and the issues that the citizens of India faced for months after the incident would probably not have been as severe as it was. This would have turned India into a parallel economy, thereby helping the country to create a parallel mode of transaction. Therefore, in simple words, any value that is given to currency, in the form of good, products, or services, etc. is given by the people. Similarly, if a set number of people form a consensus and agree to treat cryptocurrency as a valid currency, it starts getting its value thereon.
Subject matter researchers at economics homework help explain how Bitcoin, the first properly working cryptocurrency, was created. In 2008, the USA faced a severe financial crash due to banks not paying back their debts, which resulted in a loss of millions of dollars. The US Government gave out certain sums of money to all these banks in order to bail them out of this debt and thereby save the country’s economy from crashing down, especially at a time when the US was one of the world economy superpowers. Due to this, everyone in the country faced huge losses when the value of the US Dollar went down. Due to the dissatisfaction faced, they created Bitcoin, based on the theme of cryptocurrency. This currency used encryptions and decryptions and was internet-based. They also foresee the cryptocurrency market reaching a value of almost 1.40 billion USD with a CAGR of more than 6% by 2024.
Just like everything has strengths and weaknesses, the tutors at professional essay writers explain certain facts about cryptocurrencies. Since cryptocurrencies are internet-based, they do not need a central banking authority for functioning, unlike physical currencies. We are not dependant on a bank to make any transactions and therefore, do not face any problems in case the bank or the central authority faces any problems like fund deficit, hacking and so on. Since the data is stored in numerous different places, it is distributed and decentralized because it does not need any central authority for functioning. It is also anonymous because it has features that do not let others know how much bitcoin/ cryptocurrency you own. But then, not everyone is an expert in such currencies. The lack of technical understanding and knowing how cryptocurrencies work can posit a challenge. Moreover, according to experts at research paper writing service, the opportunities of these currencies are endless. Many upcoming and already existing industries are now using cryptocurrencies. It is also emerging as a significant currency is developing countries and markets.
With the many challenges that the world is facing today, the world economy is steadily moving towards a digital, eco-friendly and a paperless ecosystem. While cryptocurrency will not completely replace the traditional currency notes, they will surely change the way the different economies of the world interact and practice trade with each other. Technology is advancing at a rapid rate, and cryptocurrency might just be the thing that revolutionizes the trade markets by giving rise to a free-flowing system of trade. The experts at cheap essay writing service give us the following reasons telling us why Cryptocurrency is the future of the economy:
- Since Cryptocurrency is a decentralized currency, the banks or the Government cannot maintain their control on it. It is the currency of the people. Moreover, all transactions that have been done and confirmed, along with the identities of the users and owners of the currencies, are stored in an encrypted public ledger. Also, since these are digital currencies, they cannot be counterfeit, thereby lowering the rates of fraudulent transactions.
- With cryptocurrency gaining mainstream attention and usage, it is assumed that the market will not be speculative of the value of this currency and that it will retain its original value. This will also give an opportunity for people to consider it as an investment in the long run, thereby turning it into an asset rather than just a chance opportunity which is quite unpredictable.
- Subject matter experts at project management assignment help also say the awareness for Cryptocurrencies is growing by the day, that too on the global economic level. China, the world’s second largest economy, is also now accepting cryptocurrency as a medium of exchange. The more the economies accept cryptocurrency, the more it will penetrate into the market. Although it is accepted in more of the developed countries as of now, it is expected that more developing countries and investors will be choosing this method of exchange from late 2019 onwards.
- With almost 2 billion people having access to the internet, it has been forecasted that by 2020, more crypto trading platforms will come up with different trading options, thereby giving users a chance to choose which platform they would like to use, that too with increased stability and security.
- The increase in identity thefts all across the world is a major risk to all. Every single day, thousands of people become victims of identity thefts and lose tons of money. With cryptocurrency, the user is in full control of what he wants to send to the other user (recipient), with no other information. The public ledger where the transactions are stored, is also encrypted, thereby making sure that the user is completely anonymous.
In conclusion, cryptocurrency is set to make its mark in the future global economy. It is evolving each day and is becoming parallel with the traditional currency system, with a high possibility of becoming a natural alternative to the traditional medium of exchange.