The future of cryptocurrency

fabisch (25)in #cryptocurrency • 7 years ago

A cryptocurrency is a digital currency created and managed through the use of advanced encryption techniques called cryptography. Crypto-currency made the leap from being an academic concept to reality with the creation of bitcoin in 2009. While bitcoin attracted a growing following in subsequent years, it captured significant investors and the attention of the media back in April 2013 when it peaked at a record $266 per bitcoin after surging 10-fold in preceding two months. Bitcoin sported a market value over $2 billion at its peak, up to 50% plunge shortly therafter sparked a raging debate about the future of cryptocurrencies in general and bitcon in particular. So the question is, will these conventional currencies become as ubiquitous as dolars and euros someday?

Advantages of Cryptocurrency

1. Fraud

Cryptocurrencies are digital and therfore cannot be counterfeited or reversed arbitrarily by the sender, as with credit card chare-backs

2. Identity Theft

When you give your credit card to a merchant, you give him or her access to your full credit line, even if the transaction is for a small amount. Credit cards operate on a "pull" basis, where the store initiates the payment and pulls the designated amount from your account. Cryptocurrency use "push" mechanism that allows the cryptocurrency holder to send exactly what he or she wants to the receipient with no furtheer information

3. Immediate Settlement.

Purchasing real property typically involves number of a third parties (Lawyers), deays and payment of fees. In many ways, the bitcoin blockchain is like a "large property right database." Bitcon contracts can be designed and enforced to eliminate or add third party approvals or completed at a future date for a fraction of the expense and time required to complete traditional asset transfers.

4. Access to Everyone

The approximately 2.2 billion individuas with access to the internet or phones who currently dont have access to traditional exchange systems. These individuals are primed for the cryptocurrency market. Kenya's M-PESA system, a mobile phone-based money transfer and micros financing service recently announced a bitcoin device, with one in three Kenyans now owning a bitcoin wallet.

5. Lower Fees

There aren't usually transaction fees for cryptocurrency exchanges because the minors are compensated by the network. Even though there's no bitcoin transaction fee, many expect that most users will engage a third party service, such as Coinbase, creating and maintaining their own bitcoin wallets. These services act like Paypal does for cash or credit card users, providing the online exchange system for bitcoin, and as such, they're likely to charge fees. It's interesting to note that Paypal does not accept or transfer bitcoins.

Disadvantages of cryptocurrency

Cryptocurrencies have a long way to go before they can replace credit cards and traditional currencies as a tool for global commerce.

Fact is many people are still unaware of cryptocurrency.
People need to be educated about it to be able to apply it to their lives.
Businesses need to start accepting it.
They need to make it easier to sign-up and get started.

FINAL THOUGHTS

Naturally there are always pros and cons to any situation in life. To be able to make a good decision, you need to weigh the good and bad thoroughly before finalizing your choice. With Cryptocurrency, it's more about mass acceptance than technology. The technology is here. Only time will tell when the rest of the world will say...
YES!