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Ever since the Bitcoin made its popularity all over the world, it has generated interest in cryptocurrency among many people. The major reason behind it is the elimination of the role of the middleman. Also, it is not controlled by any central authority like banks or even government. The rise of Bitcoin paved the way to many other alternate virtual currencies, which are called as altcoins. Although, they may not be at that superior level to Bitcoin, still, it does have to compete with these multiple cryptocurrencies. So today we will be delving into know about why you should prefer cryptocurrencies.
If you are abreast with cryptocurrency latest news today, then you will know the global economy updates and how well it is moving further to digital eco-system. Be it money transfer or investing, everyone prefers paperless technology. Cryptocurrency is one such latest trend which is becoming the promising and existing add on to the digital payments. If you are a budding entrepreneur who wants to deal in cryptocurrencies in future, then better accumulate knowledge about this newest sensation in the contemporary financial world.
What Does Cryptocurrency Mean?
Unlike normal currencies including USD, cryptocurrencies deals in exchange of information via digitally. In other words, it can be defined as a virtual or digital currency that uses cryptography for providing security and making it much complex to avoid forgery. As it is free from ownership of any central authority, it can’t be taken away by the government from you. Since last few years, it has been noticed that people nowadays prefer cryptocurrencies more than traditional currencies. Now the question arises, what makes these virtual currencies grabbing so many eyeballs. Well, there are some valid reasons given below, which have the answer to this question. So have a look:
You will hardly find any account which is owned by you. So in that case, cryptocurrencies come as the best option for you. In this, no central authority, government or a middleman is authorized to make any decision, apart from you.
Another reason why you need to prefer cryptocurrencies is that it protects your identity in an encrypted form.
The value of cryptocurrency depends upon the blockchain ledger system. Also, it is not complicated and is very easy to use, making it much preferred among other traditional currencies. All it needs is the internet connection and an appropriate device. In that way, you become a roaming bank by transferring money and making payments.
Identify Theft Issues
Another very valid reason to prefer cryptocurrency is that it has a public ledger mechanism to identity thefts and frauds. Every transaction between the digital wallets is ensured by it. Accuracy of balance is also calculated by it. It checks all the transactions to be sure about the used coins owned by the right spender. ‘Transaction blockchain’ is another name of the public ledger. Blockchain technology aims to secure digital transactions by the method of smart contracts and encryption. It helps in making an entity digitally free from hacking and theft.
How Cryptocurrency Made Its Debut
The concept of cryptocurrency came with the debut of Bitcoin, the first virtual or digital currency on 3rd January 2009. All credit goes to Satoshi Nakamoto, the founder of the cryptocurrency. If you are not much abreast with Live Crypto News today, then let us tell you that Bitcoin, which works on blockchain technology, had surpassed gold with 155% yearly gain to 6% annual loss of gold. In July 2010, the Bitcoin price at 0.06/coin has now leapt to 4,000.00/coin USD, today. It came as a significant achievement when Bitcoin was considered to be an ideal investment phenomenon in today’s modern era. The tremendous growth of Bitcoin made blockchain technology gaining its momentum. It was not merely because of digital currency popularity, but because it generated a faith amongst the investors.
Both Ethereum and Bitcoin become a much promising virtual currency for many tech companies and renowned banking institutions who have invested their money and time on them. It prompted countries like Columbia, Venezuela, Brazil and Turkey to prefer cryptocurrencies in place of diminishing traditional notes. Cryptocurrency has even successfully settled its roots in India. Narendra Modi, the honourable Prime Minister of India too motivated the country for electronic payment ratification by reducing the circulation of cash bills. It is another best example to understand the reason people prefer cryptocurrencies over traditional currencies.
All credit goes to Bitcoin, for it is the first digital currency that paved the wave of cryptocurrency all over the world. The success of this cryptocurrency has led to many followups of other alternate digital currencies, which you call as ‘altcoins’. Although they may not be that successful to Bitcoin, still, they have a good market value and are competent enough to pit against the latter currency. Some of the few examples are Bitcoin Cash, Ethereum, Litecoin, Monero, Ripple, Dash, Tron, Neo among the other alternate currencies. One of the best reason to prefer cryptocurrencies is that they give you ownership of your digital currency, by ending the role of middleman and other central authorities like bank or government.
This article has been published from a wire agency feed without modifications to the text. Only the headline has been changed.