Introduction What cryptocurrencies are and how they came aboutA crypto currency is a digital currency that allows peersto make transactions of worth to one and other without involving any thirdparties such as banks. It also uses an encryption technique to secure thetransaction is safe.
This system was created by an anonymous man who came outwith his invention of Bitcoin on Halloween 2008. The anonymous man goes by thename of Satoshi Nakamoto and claims to be living in japan. However, somespeculate this to be true as he speaks perfect English and the bitcoin softwarenot being labelled or documented in Japanese.
Crypto currencies worth will varyon the amount of people invested. Bitcoin is by far the most popular withetherum second. The number of cryptocurrencies available over the internet asof 12th of June 2017 was over 900 and growing. State of Play nowBitcoin and Ethereum may have stolenthe show at this point, the innovation won’t end there. Expect more currenciesto rise. Here’s a list of some of thetop currencies below.
Amongst world economies and governments, cryptocurrencyhas been a topic of continual debate. Many governments feel that allowingcryptocurrency for legal transactions and use would ultimately result in lossof economic power and a shift towards decentralized economies globally. A shiftin power means less power for the people in charge and more to the working folk. Certain countries have gone to the extent of banning thecurrency, making its use, possession, and trade illegal. Western superpowers like the United Statesand United Kingdom have shown a positive attitude towards the new technology. Notall countries are the same though; in certain countries using cryptocurrenciescome under an anti-money laundering laws an example is China. China has becomethe world’s largest bitcoin trading market. The bitcoin ban is strictly onbanks, as the central banking authority, The People’s Bank of China is owned70% by the Chinese government.
Banking institutions and employees are bannedfrom engaging in bitcoin business through banking, as well as servicing ordoing business with the bitcoin industry. Advantages Identity Theft…any normal transactions require your full details but Cryptocurrency use a”push” mechanism that allows the holder to send exactly what he or she wants tothe recipient with no further information.Access to Everyone: There are approximately 2.2 billion individuals with access to the Internetor mobile phones who don’t currently have access to traditional exchangesystems. Most people have online banking so the skills could be transferred.Fraud: Cryptocurrenciesare digital and cannot be counterfeited like any other currency.
The transactionshappen quickly and receivers receive it in a couple of minutes. The transactionfee can be low compared to other monetary transaction done online, liketransactions made by PayPal and Pioneer.There are no chargebacks. Once payment is sent, you cannotchargeback. Therefore, the chance of fraud is very unlikely.People cannot steal your information from merchants. Yourdetails are not sent to the merchant.
You can even create a Cryptocurrency Wallerwith fake details and use it forever without disclosing your real identity.It’s as private as you want it to be. As we said that youcan use without mentioning who you are and where you stay. So your identity isalways secure and transactions made by you is only between you and thereceiver. No information is sent to the bank or Government.You don’t need to trust anyone else.
You are the owner ofyour money. Keep it in your wallet and use whenever you want. You don’t need totrust a bank or any third party service providers. Disadvantages Cryptocurrencies are difficult for people to understand,and the mechanics of everything confuses people, which means that many peopleeither don’t know how to create wallets or are just simply not 100% certain onwhat wallet to use. Because nobody knows what currencies will be adopted atscale, and there is so much uncertainty about what people will use them for,all cryptocurrencies are extremely volatile relative to traditional currencies.
Businesses are accepting bitcoins because of theadvantages, but the list of disadvantages is relatively small compared tophysical currencies. Future DevelopmentsSince bitcoin is the current leading cryptocurrency itssimplest to see a Bitcoin still at number one. Most cryptocurrencies are stillat their infancy stages with incomplete features that are in development. To make the digital currency more secure and accessible,new features, tools, services and apps are being created to make trading incryptocurrency’s as easy as using your online banking.Bitcoin has some growth to do before it comes to its fulland final potential but on the other hand another cryptocurrency may take over. Summary and ConclusionsI think that crypto currencies are a good this for thegeneral public if not to use permanently then to just at least have the optionto use it.
However, I believe the people in power will have something to sayabout this new free technology and as we are already seeing, the central banksdon’t want change for the better they would just like to continually line theirown pockets therefore I predict it to get harder to use before it gets better.Also bitcoin will come to an end relatively soon due to its design but therewill be lots of opportunities for different cryptocurrencies to rise throughits ashes.