Basic Cryptocurrency Understanding...#002

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I will be continuing from where I stopped in our last discussion on this topic in my post today.

Last time on basic cryptocurrency understanding I explained what currency is as it is vital to gain an understanding of cryptocurrencies by first understanding what currency is.

Also talked or explained then what cryptocurrencies entails with the knowledge of currency.

Now after understanding this we also know that every country of the world has a particular currency perculiar to them but with cryptocurrencies we have it in wide varities that begs the question, why is there so much cryptocurrencies? This I will discuss today.

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Why Do We Have Many Cryptocurrencies

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Ofcourse when we look today we will see that there is thousands of crypto asset in the crypto space and we often wonder why that is the case, I mean why don't we just have bitcoin as the only cryptocurrency or ethereum or steem maybe.

I know many of us this thought must have crossed our mind at one point or the other.

Well one of the reasons why we have a wide variety of cryptocurrencies why there isn't just one crypto asset is because of the different purpose each crypto asset has, put otherwise it's diverse use case.

Today almost no two cryptocurrency serve exactly the same purpose, various cryptocurrencies are designed to serve different purpose which necessitated the need for the creation of other cryptocurrencies as no one cryptocurrency is able to serve all purpose.

Some cryptocurrencies were specifically designed purely for Privacy basis and there are others too which was created for gaming features or for it's ability to retain stable value despite volatility in the market yet others were made for support of smart contract amongst other things

So various cryptocurrencies serve different purpose for this reason there was a need for many cryptocurrencies with diverse use case to come on board.

Another reason why we have so much cryptocurrencies is because of how rapidly the world is going digital and the ever increasing technological advancement.

Well because of technological advancement in blockchain network it removes hindrances and make it even more easier for any individual or organization to be able to create their own crypto coin with relative ease.

The advancement in blockchain technology made it possible for the creation of many cryptocurrencies and offers an option of having wide variety of cryptocurrencies.

Also because of the ability of cryptocurrencies to offer alternative to investing as well as new ways to invest it has also help bring about innovation and creation of different crypto asset with diverse usecase that is unique to each one created

Lastly for today another reason I believe we have many cryptocurrencies is because of the freedom it gives.

Cryptocurrencies unlike fiat currency is open in nature and is not centralized like fiat which means no central entity in control or risk of being monitored or third party but I stead functions in a decentralized nature offering genuine financial freedom to its vast users.

Because of it's decentralized nature it makes it possible for it's to be easily distributed and makes it more possible for people to strive for the creation of other cryptocurrencies as everyone leans towards it for the financial freedom it gives

So because of this reasons I have highlighted I believe that's why cryptocurrencies are so much today.

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Conclusion

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Just want to say that knowledge of currency and cryptocurrencies is vital as it helps us glean into a deeper understanding of what happens in the crypto space and even make it easier for us to have wise choice of investment.