The world of technology today is taking a new dimension, innovations and inventions are becoming almost on daily basis, a recurring decimal. Your latest technologies of a Smartphone brand today, may by tomorrow become an old fashioned or out model one. It may become totally irrelevant and of no use to the realities of the time.
These unrestricted changes in technology are fast moving into the world of finance, or better still how the world use a medium of exchange for items purchased. The conventional paper currency that the world knows is almost becoming unattractive. Especially in the world of the Internet, there is now an evolving medium of exchange. This is called CryptoCurrency.
WHAT IS CRYPTOCURRENCY?
Crypto-Currency is the money of the Internet world, and it is fast gaining acceptance within the world of the internet. It is a virtual currency system through which you make a transaction on the internet. It is encrypted as due to its usage of cryptographic which is a means of securing it.
Bitcoin was introduced in 2009 by Satoshi Nakamoto with the unique feature of peer- to- peer network. This facility is intended to prevent double spending. It was actually in late 2008 that a Satoshi Nakamoto invented it and thus had it released on January 09, 2009. Thus the first generation of cryptocurrency is called Bitcoin.
TERMS COMMONLY USED IN CRYPTOCURRENCY
- BITCOIN: This is the first virtual currency that was introduced by Satoshi Nakamoto. It began the revolution that cryptocurrency has become. It’s market value is on the increase on a daily basis.
- BLOCKCHAIN: This is the wallet that Bitcoin or other cryptocurrency earnings are saved. It is like a Bank Account. It is also virtual or digital.
- Crypto Currencies are not subjected to any government regulation compared to the national currencies of every nation.
- It is not geographically restricted as it is the case with the conventional paper currencies of every country.
- The rate of appreciation is far higher than that of the conventional currencies of the world.
- Means of the settlement of bills, some organizations do accept Crypto Currency in settlement of bills. In this way, the cumbersome procedures of processing payments via Banks are removed. Once there is there is sufficient Bitcoin in your eWallet, you are going to go in making payments.
- It is the money of the future. This simply means that in the foreseeable future, the general acceptability of Bitcoin will be higher than it is now.
The known disadvantages of cryptocurrency are:
- It is a digital or virtual currency which means that it can only be used on the internet as against the conventional currency.
- It is not divisible into units such as the conventional currency.
- It can only be used by those that transact on the internet, thus eliminating a large proportion of the populace who do not transact on the internet.
Crypto –Currency is a good innovation in the world of information technology as it has changed the face of the internet world.