You might have seen people going wild about Bitcoin, Ethereum, Dogecoin recently and seen many people making millions of dollars out of it. But you don’t even have an idea about what these are and why they are important.don't worry, you're not alone.
They are called Cryptocurrency (Also known as “Virtual Currency”); Bitcoin, Ethereum and Dogecoin are only a few popular ones. There are more than 4,000 cryptocurrencies in existence as of January 2021, though most of them have little to no following.
What is Cryptocurrency?
A cryptocurrency is a digital form of money that enables us to transact without the involvement of banks and other financial institutions. It is based on Blockchain technology, employs encryption for security. What makes it revolutionary is that it is completely decentralized; there is no central authority to supervise the transactions.
Read more on block chain fundamentals
What is the need for Cryptocurrency?
It all goes back to 2008 when the big financial crash happened, the big boys of Wall Street like Lehman Brothers investment bank filed for bankruptcy, the average household income of an average American plummeted, 5.5 million jobs were lost due to the low economic growth; all because Banks started trading in hedge funds with derivatives and to sustain their profits, banks started giving subprime mortgages on secured house loans. When the housing market bubble finally burst, the Banks had to seek a government bailout. In all this, the biggest victims were the people who had lost their jobs and mortgaged houses.
This crisis gave birth to the first Cryptocurrency Bitcoin, it was created by anonymous Santoshi Nakamoto, it solved the problem that now, we don't have to trust our financial institutions as a third party to process our electronic transactions.
Will Cryptocurrency last?
The future of a new age technology hinges on the fact that does it solve any real-life relevant problem and as described above, the problem is quite massive and Cryptocurrency is the optimum solution. It is unregulated, so the government can't control it.
Read how and why Blockchain technology used in background of cryptocurency
Why should you care?
The world is changing and rapidly moving towards digitalization. Our government wants to keep track of us, know about our education, about our assets, about our jobs or businesses. The only way to be out of their sights is using encryption, having digital assets like NFTs, and using decentralized currency are few start points. Moreover, it will be profitable to adapt early to crypto as it is here to stay and you don't want to be left out.
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