What Is Cryptocurrency
Cryptocurrencies exist to address weaknesses in traditional currencies which are backed by central banks and governments. This makes traditional currencies prone to corruption and manipulation, among a host of other issues.
A cryptocurrency is a medium of exchange just like your normal everyday currency such as the USD, but designed for the purpose of exchanging digital information through a process known as cryptography
Digital cash system
The reason why cryptocurrenciesare such in demand right now is because Satoshi Nakamoto successfully found a way to build a decentralized digital cash system.
The future of Bitcoin?
Bitcoin runs on highly complex mathematical algorithms to regulate the creation of new bitcoins and to make sure no double spending ever occurs on the network (remember, this is the Achilles’ heel of failed virtual currencies before Bitcoin).
The Bitcoin code is so secure and advanced that it’s virtually impossible to cheat the system so if you’re thinking you can create an unlimited number of bitcoins, you’re greatly mistaken.
One of the main problems of traditional currency is that these aren’t limited in number. This means that governments and central banks can print more money when they see fit.
When more money is printed and enters the economy, this reduces the purchasing power of our paper money which means we need to spend more for an item we’ve only spent a few dollars on before; this is called inflation.
Perks & Benefits of Bitcoin
Control over your money
Bitcoin transactions are highly secured.
Everywhere and anytime
Bitcoin in universal. You don’t need specific software or clients.
Choose your own fees
Receiving bitcoin is free! Most wallets have low default fees.
Protect your identity
With Bitcoin, there is no credit card number that some malicious actor can collect.
The question is, Why Cryptocurrency?
Apart from cryptocurrency being very secure and operated through a decentralized network, there are other reasons why cryptocurrencies may be the most talked about topic in at the moment. It has also been considered as an investment vehicle, which may garner massive returns.
Have you heard of Erik Finman? The teenage Bitcoin millionaire who started picking up Bitcoin at only $12 apiece back in May 2011, when he was just 12 years old. He received Bitcoin as a tip from his brother and a $1000 gift from his grandmother.
He now reportedly owned 403 Bitcoins, which a few years later became $1.08 million.