Any person, institution, and country in the world need a currency to fulfill its basic needs and to promote mutual transactions that it can use it smoothly. Therefore, each country has its own different currency such as the dollar in America, pounds in Europe and so on. Actually, it is a physical currency that you can see, touch and use it in any place or country as per rules. But cryptocurrency is different from that which is a digital currency. You can neither see, nor touch because cryptocurrency is not printed in physical form. Hence it is called virtual currency. In the last few years, such currency has become quite prevalent.
A cryptocurrency 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 anyone 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. Usually, it can be used to purchase goods or buy a service.
You should know that the first cryptocurrency started in 2009 was “bitcoin”. It was built by an engineer named Satoshi Nakamoto from Japan. Initially, it was not so popular, but gradually its rates started skyrocketing, which made it successful. If seen, there are about 1000 types of cryptocurrency in the market from 2009 to the present time, which act as a peer to peer electronic system.
What are cryptocurrencies other than bitcoin
Apart from Bitcoin, other cryptocurrencies are available in the market which is being used more nowadays, such as Red Coin, Sia Coin, Cisco, Voice Coin, and Monero. Let us now know some important things about them: –
- Red Coin:– Apart from Bitcoin, there are many other cryptocurrencies 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): – is a revolutionary cryptocurrency that offers zero cost financial transactions and incredible speed. Business Asset Digital Certificate provides the business with the infrastructure to securely trade data. Cisco works on the blockchain 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 cryptocurrency in which special type of security is used. This is known as a ring signature. It is used extensively in the dark web and black market. Smuggling is done with its help. Black marketing can be done easily with this currency.
Advantages of cryptocurrencies
We know that anything has both advantages and disadvantages. Therefore, here we first talk about the benefits of cryptocurrency. Nevertheless, generally, we can say that the benefits of cryptocurrency are more and losses are less. First, cryptocurrency is a digital currency with a very low probability of fraud. Secondly, it is beneficial to invest in cryptocurrency when there is more money because its prices rise very fast. So, it is a good platform for investment. Thirdly, most of the cryptocurrency wallets are available due to which online shopping, a transaction of money has been simplified. Fourth, the cryptocurrency is not controlled by any authority, due to which no threat of demonetization and currency depreciation is exposed. Fifth, 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 cryptocurrency and then it can be converted into money. Sixth, the biggest benefit of cryptocurrency is to those who want to keep their money hidden. Hence cryptocurrency has emerged as the best platform to hide money. Seventh, cryptocurrency 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.
Growth of Cryptocurrencies
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, in which not even 1 dollar bitcoin was transacted. But today, Bitcoin is being transacted for $ 1 trillion in a week, whereas the physical currency of a week in the whole world is worth about $ 70 trillion. Bitcoin, which started at a price of 1 dollar, has reached a price of $ 1200 today. Therefore, you can guess what the growth of crypto currency can be in the future.
Disadvantages of cryptocurrencies
First, 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. Secondly, there is no country, government or institution to control it, which sometimes causes a huge jump in its price and sometimes a huge fall, due to which investing in crypto currency is a risky deal. Thirdly, 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. Fourth, there is a risk of hacking it. It is a matter of fact that it is not that easy to hack the blockchain because it has complete security arrangements. Despite this, hacking cannot be ruled out as there is no owner of this currency. Fifth, another disadvantage of this is that if a transaction happened to you accidentally, 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 crypto currency is still not legally recognized, of which India is also one. 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.