Huge probable gains from cryptocurrencies really pushed its popularity and demand in the global market. However, despite its massive success, blockchain technology is so volatile and involves significant and drastic losses especially if you don’t know what you are doing. That’s why for those interested individuals, it is best to seek professional’s advice or check for tips for better investments like by visiting Cointed.
Back in 2017, the price of Bitcoin has seen exponential growth from a thousand dollars to a peak of 16,000 dollars and up. However, it then dropped to more than 3,300 by the start of early 2019. Then on September, of the same year, it jumped back up again to more than 10,000 dollars. Thus, the ICOs or the Initial Coin Offerings have been raised to more than 3.7 billion dollars since 2017 with series of new cryptos entering the market.
The Concept of Cryptocurrency
In essence, cryptocurrency is a kind of virtual or digital currency that’s designed to act as medium of exchange. Crypto prefix has been derived from the fact that cryptocurrency is using cryptography in securing and verifying transactions and creating new currency units, which in this case, called as coins. Cryptography makes everything easier to encode something that’s easy to decipher with key and hard to decipher without one. Meaning to say, coins can be hard to create but it can be easy to be verified when used in transactions.
At its very core, cryptocurrencies are basically entries in pseudo-anonymous and immutable database or otherwise called as blockchain. For everyone’s sake, blockchain isa public record that’s been verified by various nodes, making it immensely hard or almost impossible to counterfeit. Also, it makes it easier in tracing specific transaction between anonymous wallets or even individual accounts.
Impact of Crypto in the World at Large
The beauty about cryptocurrency is that, it is very easy to use and a wonderful alternative to fiat currencies. Consumers from countries like the EU or US might see cryptos as novelty but there are other countries with mismanaged domestic currencies.
As an example, Venezuela; its authoritarian regime become infamous due to its unfathomable inflation leading to the decline of its living conditions without having access to external currencies. There are other countries with strict capital controls put in place with the flow of their money and/or charging high taxes.
With this being said, there are a lot of other nations that began cracking down on illegal applications of cryptocurrency for illegal sales or purchases abroad or even tax evasion.