Cryptocurrencies Are the Digital Gold

Cryptocurrencies Are the Digital Gold

A new currency has arrived on the circuit that is very different from the regular currencies operating in the world. This is cryptocurrency or digital currency that is very secure and cannot be tampered with. No political connection can influence it.

Some of the properties of this currency that makes it digital gold are:

  • Irreversible in Nature: Once a transaction happens in it and it is confirmed, there’s no looking back. Under no circumstance can anyone revoke it.
  • Pseudonymous: All transactions happen around chains of around 30 characters with no transactions or account linked to any real-world identity. Thus, if someone wants to find the identity of the receiver or giver, it is impossible to trace.
  • Transactions Happen All Across the Globe: Transactions once made takes a couple of minutes to get confirmed. This confirmation is irrespective of your physical location as it happens in a global network of computers. So, whether you send Bitcoin to a person sitting next to you or on another end of the world, the time taken will be the same.
  • Secure Transactions: The digital currency funds are locked in a public key cryptography system. The system is so designed that only the owner of the private key can send this currency. The strong cryptography and use of big numbers ensure that no one can break into the fort of these digital currencies.
  • No Permission Required: It is not controlled by any central bank. All that is available is a software, which anyone can download for free. Once you get it installed, you can become a part of the system and start receiving or sending cryptocurrencies.
  • Controlled Supply: Most of these currencies are in limited supply, which means as the demand picks up the prices will escalate following the simple law of demand and supply. In Bitcoin, with the first cryptocurrency introduced in 2009, the supply decreased in time and it is expected that it will reach its final number of around 2140. Thus, if you see, BTC price has already escalated too much.

Today, Bitcoin serves as a digital gold standard in the whole industry of cryptocurrency. It is widely accepted as a global means of payment less for legitimate transactions and more for darknet markets. Starting from zero value just 8 years back, today the price of a bitcoin hovers around $715 and there are more than 200.000 transactions done on a daily basis.

According to Codelitt’s CEO and founder, Cody Littlewood,  “In 2 years from now, I believe cryptocurrencies will be gaining legitimacy as a protocol for business transactions, micropayments, and overtaking Western Union as the preferred remittance tool.”   

It looks like the future belongs to cryptocurrencies as people across the globe have started buying them as a hedge against the devaluation of their national currency.

Categories: Finance

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