Cryptocurrency 101

What exactly is Cryptocurrency?

If you’ve heard anything about cryptocurrency, it’s probably been about Bitcoin, which is as it stands, the most famous. Bitcoin is an online digital currency built on blockchain technology. This technology gets rather intricate, and is best explained by programming experts. All you need to know is that with each currency there is a limited amount of coins in supply of which can be traded for a real world dollar value.

Each currency can be used as a system to bypass banks and other centralised payment systems, this is one of the perceived benefits of cryptocurrency — decentralisation. Cryptocurrencies similar to Bitcoin are intended for peer to peer transactions, empowering people to have complete control over their money.

How does Cryptocurrency work?

We think back to basic economics when we come across cryptocurrency, supply and demand. Imagine, there are only 1,000 tickets to the AFL grand final. But 5,000 people want to purchase a ticket. Once the initial tickets have been sold, there is an undersupply and over demand, meaning tickets can be resold at a higher price.

Bitcoin prices were able to rise to such heights due to their high demand in such a short period of time. If the demand for Bitcoin continues (currently, we are at 1% adoption) then we can expect the value of Bitcoin to continue as an appreciating asset due to the finite number available.

What are the benefits of Cryptocurrency?

Besides the decentralization and complete control, there are huge benefits for travellers. People are able to spend their digital coins on real world goods and services, keeping them safe in your digital wallet and exchanging them for every country’s currency, on the go. You are able to pair your Cryptocurrency with a Crypto debit card and convert into fiat value instantaneously, without the need for regulated payment systems. Anywhere, anytime.

How can we ensure the safety of Cryptocurrency?

Despite Cryptocurrency being an online currency, the Crypto coins can be kept safe in an offline wallet which operates similar to a USB. These offline wallets utilise a private key, essentially a password to access your coins. The private key is necessary as anything connected to the internet is prone to security breaches. Even with the development of state of the art security, and constant updates and adaptation to new threats, we need to be aware of risks.

Are digital currencies a threat to the future of cash?

A cashless society is already well on its way – banks have issued milestones to eliminate physical cash by 2020. There’s no stopping it. You could question, will fiat currency (countries having their own individual currency) at threat? According to our Cryptocurrency community managers, he believes Bitcoin will exist as a parallel currency, operating alongside Fiat currency systems as they currently support salaries, construction contracts and import/export industries.

Take what you will from the digital revolution of Cryptocurrency – it’s an intriguing space that has gained incredible traction in a short space of time.

Mo Works is a creative agency specialising in ICO marketing and token sale launches. We offer full stack services with in-house capabilities to cover your ICO design, website development, social media management, ad buying, public relations and community management. To find out more, contact [email protected]