Hello Guys, I am Sarang Khokhar, Today In this article, We are going to talk about Crypto Currency and Future of Economy A crucial part of the Economy of the whole World is undoubtedly the Currency. Although the meaning of currency refers to money as a medium of exchange in any form, today, the most used form is the physical and real banknotes and coins. The usage of currency dates back to 2000BC. The banknotes and coins system of currency, however, began in China in the 7th century AD. As of today, almost every country has their own currency and its value defined, in relation to others. Crypto Currency IntroThe popularity and increasing use of the Computers and Internet in the 21st century gave rise to the Digital Currencies. It exhibits same properties as the physical currencies, but instantaneous transactions are possible and the border-less transfers of ownership. The Crypto Currency is a type of Digital Currency. It is a Digital Asset made to work as a medium of exchange using Cryptography to control the creation of additional units of it and secure the transactions. The Bitcoin became the first cryptocurrency to be decentralized in the year 2009. Since then many other cryptocurrencies have been mined. As of 25 June 2017, there are over 900 cryptocurrencies available on the Internet. Anytime new currency can be created. The Bitcoin, today is the largest cryptocurrency by Market Capitalization. The others being Etherium, Ripple, and Litecoin. Crypto Currency and Today's EconomyThere are many reasons why the cryptocurrency has not yet become a part of the World economy as it should have been. One big reason is that the legality of these cryptocurrencies differs from country to country, which keeps on changing in many of them. Some of them have still not defined it. Hence, many concerns are raised as these can become tools for anonymous web criminals. Nevertheless, people still have invested in them, and their usage is increasing by the day. There are many benefits of using a cryptocurrency.The Advantages are:
- Fraud
The cryptocurrencies cannot be counterfeited or reversed arbitrarily by the sender.
- Lower Fees.
As of now, the cryptocurrencies exchange don't have any transaction fees as the miners are compensated by the network.
- Immediate Settlement
These cryptocurrencies help reduce the delays and allow faster payment of fees, especially in the case of purchasing real property. These currencies can be designed to remove or add third party approvals. In a way, they are like a 'large property rights database'.
- Decentralization
The Bitcoin transactions are managed by a global network of computers which use the Blockchain technology. No single authority manages it. It means that the network is operated on a peer-to-peer basis.
- Identity Theft
The cryptocurrencies help in stopping the Identity Theft also, as they operate on a 'push' mechanism, where you can send exactly what you want to the merchant with no other information. Whereas, in the Credit Card, the merchants swipe them on a 'pull' basis, which has the possibility to give him/her access to your full credit line, even for a small amount.
- Access to Everyone
There are over a billion people in the world, who have access to the Internet, but no access to the traditional exchange. These are more suitable to the cryptocurrency then.
- Recognition at Universal level
This currency saves a lot of time; Since the Cryptocurrency is not bound by any transaction charges, exchange rates, interest rates or any other charges of any country, hence, it can be used at the International level without any problems. Hence Transactions are very quick and easy.
- Most Importantly, You Own It
Almost all the other account types can be owned by any person other than yourself. Even the bank authorities, the digital wallet handlers of real currencies can freeze your account if any misuse. But in cryptocurrency, only you own the private and the public key which makes your cryptocurrency address. No one can take that from you unless you yourself lose it.Future of CurrencyToday, you can see that even the real currencies are getting a digital avatar, with the advent of digital payment wallets, this is increasing more with time. This gives hope for the possibility that real cash, physical bank notes, and coins will slowly be minted less and then gradually their use will reduce and cease to exist. The digital form of currency will take over, whether that is the real currencies like the Dollar, Pounds, Rupees etc or any such Crypto Currency. The rate at which people have started to invest in the cryptocurrency, it can be said that nearly half the people of the world will own it, mostly alongside the real currencies. The many benefits of the cryptocurrencies will ensure that. Crypto Currency and the EconomyEven today, many institutions, companies have started to use the digital mode of payments of the real currencies. They are finding it easy to do transactions with them. Like this, slowly in the future, the usage of them will increase. Although, as of today, most of the companies and banks are responding to the cryptocurrencies in negative, a time will come when the usage of these will increase to such a level, that the banks and companies will have no other option than to accept them. The low liquidity of the cryptocurrencies makes the people see them as a high-risk investment. A majority of the governments, banks, and companies are having a 'wait and see' approach towards the cryptocurrencies. While some financial experts believe that they will disappear as quickly as they came, others believe that they will become a normal way of paying in the future. Today the market value of the Bitcoin alone is over billions of dollars. You can just Imagine if they are made legal in the whole world, what value they will become of. ConclusionThe cryptocurrency of the future might be a future of money if it can provide greater stability and liquidity than the Bitcoin. As of now, it definitely doesn't seem like these currencies will replace the real currency at least for the next couple of centuries. But, good chances are there for co-existence.
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