How does it work? What are its advantages and disadvantages?
What is Bitcoin we will discuss it also. We know that any thing has both advantages and disadvantages. Therefore, here we first talk about the benefits of crypto currency. Nevertheless, generally we can say that the benefits of crypto currency are more and losses are less.
Any person, institution and country of the country and the world needs a currency. In order to meet its basic needs and to promote mutual transactions so that it can use it smoothly. Therefore, each country has its own different currency, such as Rupee in India, Dollar in America etc. Actually, it is a physical currency that you can see, touch and use it in any place or country as per rules. But crypto currency is different from that which is a digital currency. You can neither see it nor touch it, because crypto currency is not printed in physical form. Hence it is called virtual currency. This currency has become quite prevalent in the last few years.
Cryptocurrencies are digital currency.
Crypto currency or Bitcoin
A crypto currency or Bitcoin is a currency built on a computer algorithm. It is an independent currency that has no owner. This currency is not under the control of any one authority. Just like rupee, dollar, euro or other currencies. This currency is not operated by any state, country, institution or government. It is a digital currency for which cryptography is used. It can usually be used to purchase goods or buy a service.
First Bitcoin Launched
The first crypto currency started in 2009 was “bitcoin”. It was built by an engineer named Satoshi Nakamoto from Japan. Initially it was not so popular, but slowly its rates started rising very high, which made it successful. If seen, there are about 1000 types of crypto currency in the market from 2009 to present time, which acts as a peer to peer electronic system.
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Other popular crypto currencies
Apart from Bitcoin, other crypto currencies are available in the market which are being used more nowadays, such as Red Coin, Sia Coin, Cisco, Voice Coin and Monroe. Let us now know some important things about them: –
Red Coin: – Apart from Bitcoin, there are many other crypto currencies that can be used on special occasions, one of which is “Red Coin”. It is used to tip people.
Sia coin: – Sia coin is denoted with SC. This coin is growing well. The price of this coin may increase even more.
SYS Coin (Cisco): – It is a revolutionary crypto currency that offers zero cost financial transactions and with incredible speed. Business Asset Digital Certificate provides the business with the infrastructure to securely trade data. Cisco works on the block chain which is a part of bitcoin itself.
Voice coin: – It is a platform designed for emerging musicians where singers can price their music on their own. They can provide a
sample track of music for free. Also, you can get support from music enthusiasts and users on the platform. The main objective of this platform is to monetize independent artists.
Monero: – It is also a type of crypto currency in which special type of security is used. This is known as ring signature. It is used extensively in the dark web world and block market. Smuggling is done with its help. With this currency, black marketing can be done easily.
Growth of crypto currency
If we talk about the growth of crypto currency, then investing in it is a very profitable deal. Today there are about 1000 types of crypto currency in the market and the price of all these coins was negligible at the time of launching. However, in a few years, their price has also reached 1000 dollars. Now take Bitcoin only.
When Bitcoin was launched, there was a daily transaction of $ 10 million worldwide, but today, Bitcoin is being transacted for $ 1 trillion in a week, whereas a week-round transaction of physical currency is around 70 trillion worldwide. It becomes dollar. Bitcoin, which started at a price of 1 dollar, has reached the price of bitcoin $ 1200 today. Therefore, you can yourself guess what the growth of crypto currency can be in the future.
Benefits of crypto currency
We know that any thing has both advantages and disadvantages. Therefore, here we first talk about the benefits of crypto currency. Generally we can say that the benefits of crypto currency are more and losses are less.
- First, crypto currency is a digital currency with very low probability of fraud.
- Investment in cryptocurrency can be possible. When there is more money because its prices rise very fast.Therefore, it is a good platform for investment. Bitcoin exchange rate is high.
- Most of the crypto currency wallets are available due to which online shopping, transaction of money has been simplified.
- Crypto currency is not controlled by any authority, due to which no threat of demonetization and currency depreciation is exposed.
- There are many countries where there is no capital control. Meaning that it is not certain how much money can be sent out of the country and how much can be ordered.Therefore, it can be easily sent outside the country by purchasing crypto currency and then it can be converted into money.
- The biggest benefit of crypto currency is to those who want to keep their money hidden. Hence crypto currency has emerged as the best platform to hide money. Crypto currency is completely secure. Just you need to keep the authentication for it, because such currency is based on blockchain. Hence, the entire blockchain has to be mined to perform any type of transaction. Bitcoin transactions are safe.
Disadvantages of crypto currency
- The biggest disadvantage of crypto currency is that it has no physical existence, because it cannot be printed. Meaning that neither the currency notes can be printed nor any bank account or passbook can be issued.
2.There is no country, government or institution to control it. Due to which there is a huge jump in its price. Sometimes a huge fall, due to which investing in crypto currency is a risky deal.
- It can be easily used for wrongdoings such as arms procurement, drugs supply, black marketing etc. as it is used between two people only. So, it can also be quite dangerous.
- There is a risk of hacking it. It is a matter of fact that the blockchain is not as easy to hack. Because it has complete security arrangements. Despite this, hacking cannot be ruled out as there is no owner of this currency.
- Another disadvantage of this is that if a transaction happened to you accidentally. Then you cannot call it back, causing you a loss. Is the use of crypto currency legally valid or illegal?
The question that comes to the mind of many people is whether it is legally right to use crypto currency or not. Actually, this decision depends on which country you are staying in and using it. because in some countries the crypto currency is still not legally recognized, including India. Not only this, some countries have placed it in the ‘gray zone’.
This is to say that neither it has been formally banned nor its use has been recognized. Undeniably, due to good growth in crypto currency, the trend of Indian citizens is also being seen in this direction. Therefore, it is expected that the Government of India will also take some positive initiatives in future.