Crypto currency a bright future or just a fad
crypto currency a bright future or just a fad
As we all know, that today’s topic of discussion is “Crypto Currency – A Bright Future or Just a Fad?” But, before going for a detailed discussion about this topic. Let’s understand what exactly the term ‘Crypto Currency’ means, because it’s a hot potato now-a-days. Well, a crypto currency is a digital or virtual currency that uses cryptography to secure, create and control its transactions. Unlike traditional currencies, which are issued by the central banks of all the countries. Crypto currency has no central monetary authority. On the other hand, the term crypto currency is a combination of the words ‘Cryptography’ (Study of a secure communication) and currency. Crypto currency was around in the 1980’s, but it gained massive attention in 2017 when Bitcoin prices crossed the US$10,000 mark. Bitcoin is the first crypto currency which came to public notice in the year 2009.
Following this a number of other crypto currencies, such as Ethereum, Ripple, Litecoin, Cardano etc. came into existence in the market. Crypto currency can be exchanged for other currencies, products & services. On the flipside, the crowd the crypto currency caused a gradual increase in speculations, fake news, scam and paranoia. Many people started believing that crypto currency, like Bitcoin, is just a bubble that’s going to pop and disappear. In recent months, Economists, Central Bankers and Monetary Experts expressed their reactions on the future of this currency. Let’s discuss about the key facts and figures which has been observed by them. According to “Global Crypto Currency Benchmarking Study” by Judge Business School and University of Cambridge,
these are the key facts about the size and usage of this currency:-
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- The total Crypto currency market capitalization increased more than three times since early 2016, reaching nearly US$25Billion in March 2017
- At least 1,876 people are working full time in the crypto currency industry and the actual figure is likely well above 2,000 as large mining organizations and other organizations that did not provide headcount figures are added.
- The correct number of unique and active users of crypto currency wallets is estimated to be between 2.9 million and 5.8 million.
- Bitcoin is the most widely supported crypto currency among exchanges, wallets and payment companies. The leading crypto currencies are Ethereum, Bitcoin Cash, Litecoin, Ripple and Lota.
- Vanantu, a Pacific Island Nation, located in the South Pacific Ocean, became the first nation to accept Bitcoin in exchange for as payment for its citizenship program.
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- While countries like United States Of America, Canada, Australia, Japan etc. allow trade and investments in crypto currencies; there are countries such as Iceland, Vietnam, Kyrgyzstan and Bolivia where crypto currencies are totally banned.
- Now, it’s time to discuss about the advantages and disadvantages of crypto currency. Let’s start with the advantages:-
- As a decentralized currency, crypto currency cannot be manipulated by Governments and Central Authorities of any country. Also because of its decentralized nature it is adverse to the move of inflation.
- Unlike bank transactions, crypto currency transactions are completely anonymous. A person can only know the addresses of crypto on which the payment has been sent and received. But, to whom these addresses belong cannot be identified. This anonymity feature offers security against fraud and identity theft.
- Due to dramatic rise in its popularity among the masses, it is gaining wide acceptance as a payment method.
- The fee for crypto currency transactions is relatively low as compared to other digital transactions such as credit cards and other modes.
- The mechanism behind crypto generation is highly complex which prevents the duplication, manipulation and creation of fake currency.
Now, let us discuss about the disadvantages of crypto currency:-
- Being highly volatile in nature and subject to huge price change over a short period, the crypto currency poses a serious question in order to be considered as the future currency.
- With government of different countries having different attitudes towards considering crypto currency as a legal tender, people unaware of its mechanism consider it to be a risky investment.
- The anonymous nature of crypto currency transaction attracts its usage for illegal and illicit activities such as tax evasion, weapons procurement, gambling etc.
- Crypto Currency transactions are irreversible in nature. Funds sent to a wrong address cannot be traced back and result is in the form of loss of all the transferred money.
- If the storage device in which crypto currencies are stored gets damaged or lost, then the lost Bitcoins cannot be recovered by any means.
Cases of online hacking of crypto exchanges such as Mt.Gox in Japan, Bitfloormake etc. make it more risky to go for crypto currency as a legal tendered currency in the future.
While discussing this topic – “Crypto Currency – A Bright Future or Just a Fad?” we came across many pros and cons of Crypto Currency along with its dark sides of doom. But, as it is being accepted as a mode of transaction in many countries, it’s not possible on our part to give a complete termination to it. Rather we can work on its advantages and boost them by using more advanced security norms. Secondly, we have to discourage the disadvantages by spreading proper awareness and training amongst the general mass regarding the proper mechanism of Crypto Currency’s operations. Finally, we landed on this opinion that Crypto Currency is eligible to be the future currency of the world; but it has to be handled with extreme level of care, awareness and consciousness.
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