Cryptocurrency : New Generation Future

 Cryptocurrency : New Generation Future

A Cryptocurrency is a digital designed to work as a medium of exchange through a computer network that is not reliant on any central authority , such as a Government or bank , to uphold or maintain it . 

Cryptocurrencies are digital token - not coin or cash - but digital money which allow people to make payments directly to each other through an online system set up to allow peer- to - peer transactions without needing a bank.

Cryptocurrency does not exist in Physical form (like paper money) and is not issued by a central authority. A Cryptocurrency is a tradable digital asset or digital form of money , built on blockchain technology that only exist online. Cryptocurrencies use encryption to authenticate and protect transactions, hence their name. There are currently over a thousand different cryptocurrencies in the world.

Bitcoin , first released as open source software in 2009, is the first decentralized cryptocurrency. Since the release of Bitcoin , many other cryptocurrencies have been created. 

Different Types of Cryptocurrencies

There are only 3 broad types of Cryptocurrencies currently in existence. These are -

• Bitcoin
• Altcoins
• Tokens

Bitcoin

It is the first cryptocurrency that was ever introduced and is considered the " Digital Gold " A unit of Bitcoin can be broken down into Satoshis , which is equivalent to the relationship of rupees and paise .

1 Bitcoin = 29,41,211 Indian Rupee (Varies time to time)

Bitcoin is open source ; its design is public , nobody owns or control Bitcoin  and everyone can take part. Bitcoin have some unique properties like

• Fast peer-to-peer transaction

• Worldwide Payment

• Low processing fees

 

Altcoins

Altcoin is a combination of the two words " Alternative " and " coin " and includes all alternatives to Bitcoin. The competing cryptocurrencies that were created as a result of Bitcoin success are known as Altcoin. Some of the well known Altcoin are as follows:

• Litecoin
• Peercoin
• Namecoin
• Ethereum
• Cardana

Tokens

• Crypto tokens are a type of cryptocurrency that represents an asset or specific use and reside on their own blockchain.

• Tokens can be used for investment purposes, to store value, or to make purchases.

• Cryptocurrencies are digital currencies used to facilitate transactions (making and receiving payments) along the blockchain.

• Altcoins and crypto tokens are types of cryptocurrencies with different functions.

• Created through an initial coin offering, crypto tokens are often used to raise funds for crowd sales.

 

Advantages and disadvantages of Cryptocurrency

Cryptocurrency has the following Advantages :

• Funds transfer between two parties will be easy without the need of third party like credit/debit cards or banks

• It is a cheaper alternative compared to other online transactions

• Payments are safe and secured and offer an unprecedented level of anonymity

• Modern cryptocurrency systems come with a user “wallet” or account address which is accessible only by a public key and pirate key. The private key is only know to the owner of the wallet

• Funds transfer are completed with minimal processing fees.

Cryptocurrencies have the following Disadvantages :

• The almost hidden nature of cryptocurrency transactions makes them easy to be the focus of illegal activities such as money laundering, tax-evasion and possibly even terror-financing

• Payments are not irreversible

• Cryptocurrencies are not accepted everywhere and have limited value elsewhere

• There is concern that cryptocurrencies like Bitcoin are not rooted in any material goods. Some research, however, has identified that the cost of producing a Bitcoin, which requires an increasingly large amount of energy, is directly related to its market price.

Conclusion

                            Cryptocurrencies present an optimistic future for not only India but the whole world. Regulation of cryptocurrency is inevitable and should be supported. But despite its speculative nature and public rumors, 3 predictions can be made on the basis of the current scenario in India: cryptocurrencies We will see more use, more misuse, and more rules in the future. One must be informed and cautious before investing.