Cryptocurrency is a phenomenon that has taken the world by surprise. This new system is something that has potentially revolutionised the whole currency investment and and trading scenario by using the marvel of the technology that is known as ‘Blockchain’. The whole concept of Crypto was started by a concept called ‘Bitcoin’.
Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. The network is peer-to-peer and transactions take place between users directly, without an intermediary. These transactions are verified by network nodes through the use of cryptography and recorded in a public distributed ledger called a blockchain. Bitcoin was invented by Satoshi Nakamoto and released as open-source software in 2009.
Following the awareness of Bitcoin and crytocuurency the whole world was immediately interested in this new concept as it had a potent investment advantage that paid a number of investors a good yield. This gave rise to numerous local and international companies who started dealing in digital currency and thus there were a long list of digital cryptocurrencies available to investors in the market.
The drawback of cryptos has been an issue for a long time since regulatory authorities worldwide did’t approve of the generalisation of this currency in regular use in terms of payment and acceptance in various fields including the investment grade asset. This instrument since has faced an issue of being frowned upon by most investors who don’t understand its process and advantage. The concept of blockchain is a liberalised format of dealing in flawless transactions that are accessible publically and the system itself has served a public level of transparency with its framework. The problem meanwhiel lies with the ambiguity of the instrument as most people have not entirely understoo how it works.
All cryptocurrency frameworks work on a similar algorithm and also support general rules of technicals that are most widely used globally. This has enabled traders to create a lot of liquidity in the cryptocurrency market and thus there was a point at which even NYSE approved of BITCOIN Futures being traded to make it even more of a diverse instrument to trade. The concept allowed a lot of traders to create hedges and multiple trading strategies to use this as means to encash more profits. Cryptocurrencies have a slight problem in intrinsic value as the value addition mostly depands on the fact where it would grow in value only when it stays actively accepted and available to use on a regular basis and can be accessible in every corner of the planet. Secondly on the fact that there remains a big time investment that will stay in the system for a longer period of time which will enable to make crytocuurency a widely utilised medium of currency exchange and help the awareness and interest increase overtime.
The fate of cryptos is mostly unknown but if devised and marketed carefully by global operators and individuals who are engaged in the whole system, it may replace intercontinental, international and internal currencies in the wider aspect and thus provide an equal platform for all currency related activites in business and economics.