What is cryptocurrency? It is a unique currency that has no physical existence unlike real-world currencies. It is a digital currency of the 21st century that has worldwide existence without worry of fluctuating market prices linked to real-world currencies like US dollar, Pound, Euro, etc. and can be easily transacted virtually through computer networks using verified transactions in digital ledgers called blockchain. This currency is absolutely digital in its forms and transactions. Bitcoin is the first invented currency of this type and altcoins are hundreds of its forms that followed the advent of Bitcoin. Crypto coin units are stored and transacted through digital wallets.
Cryptocurrency – distinct from fiat currency
This currency has unique characteristics that make it distinct from real-world currencies and can be transacted worldwide with an ease without intervention of the bank. As you build your wealth in cryptocurrency, you don’t need to maintain bank account, vaults, and wallets to keep this currency safe because it uses hardware or software-based digital wallets that stores and transacts crypto coin units. The blockchains that act as digital ledger can be accessed by a public key, yet a private key secures its access. The transactions in this currency are anonymous because they can’t be known to external sources except sender and receiver.
Cryptocurrency – present and future
When digital currency made entry in real-world, people were not aware of its application and worth. Over time, advent of altcoins familiarized people with potential of cryptocurrencies and its future was looked as bright. Buy and sell bitcoin has shaken many big economies across the globe because this currency interferes with working of real-world economy due to anonymous nature and non-banking transactions. When legal tender and legalized mode of transactions are not involved, this currency has made its vast use in money laundering and several other forms of illegitimate transactions by the underworld. None of the country’s government has control over this currency, but let’s wait and watch how this currency will benefit real-world economies in future.