What Is Cryptocurrency? Well, cryptocurrency is a digital currency that was developed to make transactions on the internet secure. They are secured by mathematical algorithms, which means they are more secure than fiat which is secured by humans. It is not uncommon for the word Bitcoin, Ethereum, Monero, or some other cryptocurrency to enter the fray of every conversation today. So what is all the fuss about cryptocurrencies
Here are a few things to answer the question ‘What is Cryptocurrency and why the fuss?’ that have made cryptos so popular:
Cryptocurrencies are organic in nature, which simply means that they are not issued by any government. This makes them immune to government regulation or manipulation by financial institutions. After the economic downturn of 2008, most millennials become very skeptical about fiat currency so cryptocurrency was welcomed with open arms. Even if the global economy was to fail again, cryptocurrency investors will not lose their investments.
Smart contracts have also made cryptos popular. A smart contract is a code that is triggered in the cryptocurrency when a certain event is realized. An example of a practical application would be using a smart contract to make commission payments. For instance, a stock trader can be paid a specified percentage when they execute a profitable trade on a client’s account. The de-facto smart contract cryptocurrency is ethereum.
There are all kinds of scenarios where one may need their online transactions to be anonymous. One major concern is identity theft. Most online transactions using fiat require your credit card and address information. Hackers can steal this information and use it for identity theft-related crimes. The anonymity of cryptocurrencies solves this problem and this is one reason why more merchants are now accepting cryptocurrencies.
Cryptocurrencies are practical, safe, secure and anonymous. In addition to this, there is no other investment that has the kind of returns offered by cryptocurrencies. It’s only in cryptocurrency that you can buy a crypto like Bitcoin for five dollars and watch it grow into millions in less than a decade. These and the other factors described above explain why there is such a big fuss about cryptocurrencies.
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