Cryptocurrency has been in news for a while now; it is surely new for many as it has grown in value and popularity in less than 1 year. Its steeping price has totally shifted the focus to this so called virtual currency. Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of Funds, Operating independent of a Central Bank. This virtual currency has broken records of all sorts as People are slowly moving towards a Digitalized economy. There are some currencies which have gained immense popularity like Bitcoin, Ripple, Ethereum etc.
The rising price has surely made it one of the best investing entity but its limitations has surely made it a tricky customer to deal with. So let us dig more information about it!
Let us talk about the most valuable virtual currency till date i.e. Bitcoin. Its origin is still unknown like any other Mystery. Some say it was created or invented by A Japanese Programmer Mr.Satoshi Nakamoto. Some say it was developed by a small country to find a way to prevent bankruptcy. Since there are many theories related to it, it is better focus on the Benefits and drawbacks. As mentioned earlier it is Independent of a Central Bank, It cannot be controlled by anyone and it follows a series of Block chain. Block chain is a Public ledger that records Bitcoin transactions. To obtain Bitcoin a process called ‘Mining’ is executed without anyone intervention. Due to its immense popularity more and more people are joining the Block chain. Its limitation is it can be produced or mined up to 21 million coins.
There are many other Crypto currencies which have better advantage than Bitcoin as maximum of them have unlimited production and stays in the circulation until the chain is not broken. But, other currencies may not have the same advantage like Bitcoin. Since its price goes up and down like a see-saw, it becomes really difficult for a long-term balanced profit gain. In addition to this recent news highlighted the fact that Bitcoin and other Crypto currencies worth millions were hacked and were removed from the block chain. This news has created massive panic situation among many investors and interestingly many countries like India, South Africa, Algeria etc. have banned exchange or mode of payment through virtual currencies.
This remains to be seen if it holds its place in the market and become a giant of its own stature and creates its own self-image.