CRYPTOCURRENCY
As man has evolved from apes, in the same way the currency has also evolved. Before starting what is currency? Anything that has a monetary value and can be used for purchasing a commodity is considered as currency. Earlier stones were used as a currency then came barter system in which people exchange commodity for commodity then came mint currency in which coins were used and then finally came paper currency and digital currency which we all are using today.
But nowadays a new form of currency is there in the market known as cryptocurrency. But what is cryptocurrency? Cryptocurrency is a digital currency that is used virtually for transactions. There are many types of cryptocurrency like- Bitcoin, Dogecoin, Ethereum, Litecoin and many more. But the most popular ones are Bitcoin and Dogecoin in which also Bitcoin is more famous. Cryptocurrency uses blockchain technology for making transactions. But what is blockchain technology? As ledgers are being used for keeping information of the cash in the same blockchain technology is a type of digital ledger in which information regarding cryptocurrencies is being kept.
As cryptocurrency is a virtual currency so transactions are made one-to-one between two parties. Like our normal currency in which banks act as a third party for processing transactions, cryptocurrencies require no third party. Cryptocurrencies can either be traded on crypto-exchange- where cryptocurrencies are purchase or sell or can be minted- which means whenever a transaction is made virtually there are complex equations on solving which the person gets a reward.
But as there are pros and cons of everything same is with cryptocurrency. As it is a virtual currency, it involves no third party and is being traded, so, is cryptocurrency safe? We always hear and see in the news that the price of the bitcoin suddenly hikes and then suddenly crash down which means that the price of cryptocurrency fluctuates too much. As cryptocurrency uses blockchain technology which without any question is safe but as the technology develops simultaneously comes the problem. Who knows that in the near future hackers may be able to hack this technology too? And the most important it does not involve banks for processing the transactions which means that govt. does not back cryptocurrency. Most of the countries still does not consider cryptocurrency as legal tender. Many countries have even banned cryptocurrency for even trading.
Investment is always the right decision. People should always keep some part of their income for investment. But there are some rules for investment and the first and the most important rule is people should know where and in which asset and how they are investing. Assets like cryptocurrency are a good option for investment, but only if you have excess money. But considering the fact- like so much fluctuation in price and a currency that is not recognized even as a legal tender can be considered a worthy investment option?
