Digital Cryptocurrency – The Revolution
Digital cryptocurrency is a term used for the digitalized currency that is generated and circulated exclusively on internet. It is similar (not same) to that of fiat currency, except for a few points of differences. Laying down those few differences, the first one to top the list is the platform. While the money that many people are still onto fiat currency i.e. paper money or in coin money in the real world, this is in the form of bitcoins (infact bitcoin is the first decentralized cryptocurrency to be introduced in 2009,) altcoin like litecoin, titcoin, so on and so forth which is prominently used in virtual world.
While the paper money is being issued and distributed by the central bank, the cryptocurrency is circulated online in a P2P model. P2P is peer to peer network where the bitcoins are usually given and taken from person to person without any banking control or instruction. You may ask, what are the advantages of using this? There are ample of reasons as to why this is more preferable than printed money and there is also a lot of speculations as to how it has the caliber to take over the world.
Firstly, the mother earth has a restriction to how much of resources she can provide us with. Sure, right now, we might say we can preserve and conserve the resources like gold, steel, metal etc but till when? At one point or another, people will give into their greed and a time will come when the machines might not detect the presence of any metal or non metal, elements or compounds. So, around that time, a digitalized currency can be used as gold or cash. Just like gold, you need to mine, not in the ground but by cracking the cryptography keys.
The second important factor which arises temptations is the fact that no authority, no government or not banks control this digitalized currency. It is decentralized and works in a peer to peer network. The bitcoin is ruled by no one except the parties that are present in the network. The process of giving and taking or buying and selling the bitcoins is very easy and the transaction fee involved is very minimal.
Crypto currencies like bitcoin have the potential to solve the inflation of world economy and actually can also contribute to deflation. People nowadays seem to have more trust in this currency and the protocols involved as they are being vetted by internet specialists. We can trust the block chain which is basically the group of network because we can only transact the money only if we have the keys (private/public) or is able to solve the mathematical problems and is bring approved by the miners who maintain the ledgers. If someone tries to mess it up, the transaction will not work. Digital Crypto currencies follow the principle and the policies of transparency. Several computers on a network have public ledger in the blockchain which contains the information of transactions and the dates and this block chain is accessible by the group of computer on the network.
According to some big companies, this is an innovative and a reliable way of online transaction and only time will tell when such a currency would dominate the economic side of the world.