What is cryptocurrency?

 What is cryptocurrency?

Goods and services could be exchanged traditionally in the form of currencies and now Cryptocurrency is also a form of payment exchanged online for the same. You might be knowing companies are providing tokens to the employees as currencies to trade especially for the goods and services provided for the company. You just imagine them as one could colonnade those so-called tokens or chips. You may need to exchange real currency to acquire cryptocurrency to get the exchange of services.

Blockchain is the technology used for Cryptocurrencies to work. You always need a de centralised technology and that’s why it is used in this Blockchain and spread across various computers that be able to manage and document dealings. It’s security is the main part of its technological appeal.

According to CoinMarketCap.com (market research site) around 2,250 various cryptocurrencies are openly traded.  Initial coin offerings, or ICOs proliferating and raising money through. Hundreds billions of all cryptocurrencies, and collected value of all bitcoins, the very popular digital currency, was fastened at about more than $150 billion.

For various reasons it is appealing to the customers. The most popular are

Groups of followers look cryptocurrencies like bitcoin as the future of currency and are hence rushing to buy them now, apparently well in advance that will be in demand and much more valuable. Many of them believe and like the element that cryptocurrency eliminates central banks from handling the traditional currency supply, subsequently over time these banks incline to lessen the worth of real currency by means of inflation. Another school of thought like the blockchain technology behindhand cryptocurrencies, since it’s a devolved dispensation and footage system and could be safer than traditional payment structures. Many opportunists prefer this because they’re successful in value and have no curiosity in the moneys’ long-term reception to move real currencies.

                                                                                                                 

Cryptocurrencies might move up in value, but many stockholders look it as simple assumptions, not real investments. Because like real currencies, cryptocurrencies won’t generate cash flow, so for to others profit you have to pay more than actual value you have earned.                                                                                                                                                                                                                                                                                                                                                                                         

That’s why many calls as “the greater fool” way of investment. This is not all of it! Let us discuss further in coming articles in coming days on its stability, buying methods and legality in India and around the world.

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