Cryptocurrencies like Bitcoin and Ethereum are taking the tech payment world by storm. If you don’t live under a rock, you have surely heard of Bitcoin. These new forms of currency are advancing our world to a technology based system and if you don’t understand it you will be left behind. Learn about cryptocurrency and how it is changing the future as we know it.
What is Cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is challenging to counterfeit because of this security feature. A crucial feature of a cryptocurrency, and perhaps its most appealing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically invulnerable to government interference or manipulation. In 2010, a developer bought 2 pizzas for 10,000 Bitcoin. In today’s dollars, the value of those bitcoins would be $25 Million.
Is Cryptocurrency Safe?
Cryptocurrencies make it simple to transfer funds between two parties with minimal processing fees unlike banks, which charge a large fee for things like wire transfers and cashier’s checks. However, because cryptocurrencies are virtual and there is physical no financial institution, a digital cryptocurrency balance can be wiped out if a computer crashes. In addition, the volatility of this currency makes it widely unstable in terms of the exchange rate.
So, will cryptocurrency change the world? Who knows. One thing you can be sure is it will be a wild ride and our future will be impacted in one way or another.