In this Blog, we read about different ways cryptocurrency is future of finance and money. The cryptocurrencies is now a new tech trend in the world of technology and finance attracting significant amount of investment and talent. There are several factors that are pointing that cryptocurrency is the future of finance.
What is Cryptocurrency?
Cryptocurrency or crypto is a digital payment platform that exists only in digital form and used for online transactions in order to purchase something. While you store normal currency in bank account, you store cryptocurrencies in a digital wallet. The most popular well known cryptocurrencies are Bitcoin(BTC), Ethereum(ETH), BNB, Solana and many other crypto in the market. Bitcoin is the most popular well known cryptocurrency with the largest market cap. Ethereum(ETH) is the second most popular cryptocurrency after Bitcoin.
who makes cryptocurrency?
Cryptocurrencies is not made by any one institution or any government entity. Unlike physical money, cryptocurrencies is sold by several companies. cryptocurrency is not controlled by any government entity and financial institution , crypto is totally resistant to censorship and manipulation. Bitcoin is one of the most popular cryptocurrency with largest market cap. we still don’t know the identity of the person who founded Bitcoin. The first person or group who invested in Bitcoin is Satoshi Nakamoto in 2009. Satoshi Nakamoto is the Pseudonym of the person or group who created Bitcoin.
There are several ways cryptocurrency is the future of money and finance :-
Decentralization
Cryptocurrencies run on a decentralized networks such as blockchain , that does not gives control to the one single entity like centralized networks. Cryptocurrencies does not need a middleman like banks to use the financial services. This opens up opportunities to those individuals who do not have a bank accounts and want to use the financial services worldwide.
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Security
All cryptocurrencies use a blockchain technology that offers a highly secure and transparent way of recording transactions. All the transactions in cryptocurrencies are recorded in a public ledger so, no one can tamper or alter any transaction after it has been recorded into the public ledger. Thus, increasing trust in digital transaction. Also, if you use cryptocurrencies , you have complete control over your assets.
Innovation
The cryptocurrencies is now a new tech trend in the world of technology and finance attracting significant amount of investment and talent. New technologies like dApps that are software program that run on a blockchain, non-fungible tokens(NFTs) are emerging and shaping the future of finance and technology.
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Privacy
Another big advantage of cryptocurrency is privacy. When you purchase something with cryptocurrency , you don’t need to share any of your personal information. So, your financial information is not been compromised and this protects your from potential identity theft and other hacking activities.
Lower and Borderless Transaction
Banks charge high fees for transactions , especially if you want to send your money to another country. Cryptocurrencies make it easy to send your money to another part of planet with a low transaction fees due to the elimination of banks and efficiency of blockchain technology.