With an increase in technology all over the world in various industries, there’s a need to virtualize our currencies too. Such an idea was brought up many years ago, with a sense to make money more digital. It is said that the idea of virtual money was started in 1980’s. But it has always been a skeptical issue among users. Until recently such an idea has given rise to various sources trying to make money digital. Cryptocurrency is one of them.
Crytocurrency is a digital currency. It is encrypted using cryptography. Unlike our traditional money, cryptocurrency is not available physically and has no central authority. Cryptocurrency is a decentralized currency which can only be used via internet. It is stored in a database and accounted for using the same. It can be used for trading, international exchanges and if properly brought forward also on daily basis instead of traditional money. The most popularly known Cryptocurrency is Bitcoin, after the major fluctuations in its stock since 2013; Bitcoin has come in attention to a lot of masses. Many other companies have introduced their own Cryptocurrency after that.
There are various pros and cons of cryptocurrency as of now. Some of the advantages can be that, Cryptocurrency is transferred anonymously. It cannot be traced back to an account which can decrease the number of cyber crimes. Also, transferring of Cryptocurrency costs less than the transferring of current currency from banks as there is no intermediary in cryptocurrency. Using Cryptocurrency for international trades can give an advantage to both parties as it reduces the extra taxes and other formalities. On the other side, not being able to trace Cryptocurrency has given a rise to smuggling, illegal trading, frauds, tax evasions and many other illegal activities. Also, if such activities come in light there’s no proper authority to be held accountable. It can result in a major loss if the database storing the accounts glitches.
In my opinion, Cryptocurrency holds a bright future if certain changes are to be made. If it is made more secure, it can throw back our traditional money. Organization of the procedure and thoroughly solving the security issues can prove useful. Many governments have already accepted the concept of Cryptocurrency. Although some countries have yet to lift off the ban on it. . Cryptocurrency can prove to be the future of currency. Specially, in post pandemic times like this digital money like Cryptocurrency can hold a great value in the market.
