Crypto World #4 Inception and Future of Cryptocurrencies.

mann (61)in #crypto • 6 years ago

Right from the inception of this very world, business has been an integrated part of the entire living force. Business has a particular and simple principle; give one thing in one hand and take another thing for it.

Earlier in the stone age, this system of “Give and Take” was principally called barter system, in which a person who is interested in buying a product from another person offers a commodity which the other person is interested in. Thus, barter system was an exchange of a product with a product itself.

But, as time passed and technology started to grow, this barter system got replaced with a currency system which is what we see now. In a currency system, a person who is interested in buying a product gives an amount of currency equal to the value of that product to the owner.

Such a currency system was then centralized, and institutions like banks were created to monitor there influx and production according to the conditions in the market. But, as we know, change is inevitable. The world is getting digitalized, and it is also expected to change and affect the currency market as well.

Digital currencies might seem to be a hypothetical matter until it came into reality in the year 2009 when a techie geek from Japan invented the first digital money called Bitcoin, and the rest is history.
So, in this article, we are going to discuss how a digital currency, better known as cryptocurrency works and what is its immediate future.

Cryptocurrency can be just defined as a currency which does not exist on pen and paper and circulates and operates digitally on the internet.But, the one thing which differentiates cryptocurrency from the common currency issued by countries and governments, is that unlike the usual currencies which are centralized and monitored by banks and regulations, the cryptocurrencies are entirely decentralized.

This means that these cryptocurrencies do not have any middlemen like banks and governments. Thus, f you are a user of cryptocurrency, you can easily transfer cryptocurrency from your account to another person’s account without the involvement of any bank, and all your transactions and related details will be maintained on a public ledger, which is known as a blockchain.

The transactions which are completed and processed with the help of these digitally minted currencies are encrypted with an encryption system called cryptography, and hence, these currencies got their name as cryptocurrencies. All the transactions which are carried out via these cryptocurrencies are entirely public, and the person who has his account related to a particular transaction is provided a password, known as a key. Thus, to look for the transaction details, you will need to have this particular key.

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Although there are hundreds of cryptocurrencies which have been floated in the digital market, yet, the ones which have got the maximum publicity and prominence include Bitcoin, Litecoin, Ripple, and Ether. But as after every dawn, there is a moment of the dark; similarly, this case of cryptocurrency is no exception.

Though these cryptocurrencies are ruling the entire economy in the recent times and have registered a maximum value of 2 billion dollars at their peak, it is also attracting some scrutiny from various national governments, and it is predicted that many such sanctions are yet to come.

So, in this moment of uncertainty, what can be said about the future of these cryptocurrencies?

Since these currencies are operated solely on the internet, there is a high risk of these getting affected from hackers or a malware which can erase the entire history of someone’s account and all the related transactions.

But, with technological advances, such a mishap can certainly be avoided.Although the number of people in business and merchants who are ready to accept cryptocurrencies is insufficient, yet, this number is undoubtedly going to increase.

To flourish, these cryptocurrencies have to become a widespread issue and merchants have to ensure their clients that this transaction process is completely safe. Only when people get assured of its viability, will the cryptocurrencies like Bitcoin, Litecoin and Ether see their ultimate productivity.

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6 years ago in #crypto by mann (61)

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bigtx31 (51) 6 years ago

Great post. A lot of investing in crypto right now is driven by market sentiments and waves. People hoping to make a quick buck without really understanding the drivers of the success of crypto. As you said, for BTC to really take off, it'll need to be better integrated into business. Likewise, for Steem, we'll need to see greater adoption and a much larger community.

I do think we'll see crypto adoption in the long term though and therefore, valuations stabilize toward "true" values. My long way of saying now's a great time to go long and hodl!

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