A brief intro to Cryptocurrency

             As we, the people, have organized communities, we have been introducing new ways of doing calculations and trading with each other which is responsible for the exchange of goods. This is the reason for the development of different trading methods. The formal term for the exchange of goods is known as the currency which has been changing over time. It started with coins, silver, and gold and then developed; the world became accustomed to paper money. As this development process continues, the trading system is now being transformed into digital with the use of modern technology and methods that make digital money reliable, secure, and easy to exchange. One of those virtual currencies is known as Cryptocurrency which works on modern blockchain technology.

 Introduction:

  The term Cryptocurrency is derived from the two words Crypto and Currency.

        CRYPTO means secret and CURRENCY means the process of purchasing goods and services.

Due to the encryption feature of Cryptocurrency, it is known as a secret place for purchasing goods and services. Digital / Virtual Currency, which operates in blockchain technology, is designed to serve as an online exchange to purchase goods and payment services such as pay pal / Google pay. The Cryptocurrency feature that distinguishes it from other online trading methods and digital wallets is "Decentralization" which means that the currency does not belong to any third party like banks or any other authority even the government. In exchanging Cryptocurrency, one has to buy different crypto coins that differ in price depending on market conditions. The first, most popular, and the most expensive coin used in Cryptocurrency is Bitcoin introduced by Satoshi Nakamoto in 2008.. Price ranges of several coins used in Cryptocurrency can be viewed from the picture given below:

Cryptocurrency coins

Benefits of using cryptocurrency:

Using cryptocurrency can provide opportunities for other businesses. Benefits may include the following:

The operation of cryptocurrency is usually a quick and straightforward process. For example, Bitcoins can be transferred from one digital wallet to another by using only a smartphone or computer. It also saves our time and expenses of using paper scripts for record-keeping. One has access to his/her wallet 24/7. When making any transaction record history, called a ledger, is followed by a public list called Blockchain. Blockchain uses a hashing algorithm to maintain cryptocurrency security from hackers. The technology stores the hash 

code of each block in the linked chain as well as the hash code of its previous block. By using this machine, no one can make any changes to any block without the consent of all blockchain users.

This process makes Cryptocurrency more reliable and secure. This feature stops people from using coins that do not belong to them, making copies, or postponing transactions, and makes it almost impossible for hackers to hack the system. This is because of such advanced features of blockchain technology used in Cryptocurrency that people like Bill Gates (CEO Microsoft) and Elon Musk (CEO Tesla) support Cryptocurrency and view it as a secure future for the economy business.

Problems with using cryptocurrency:

                       Apart from the number of benefits, there are a few cryptocurrency disadvantages, you can lose your digital wallet or your money. Despite the secure Cryptocurrency system, 2014 was a year when the huge crypto money of crypto was hacked, losing almost a million bitcoins. The value of cryptocurrencies like Bitcoins can change drastically, so some people feel unsafe and insecure to convert 'real' money into Bitcoins. The cryptocurrency market is not regulated by any Financial Conduct Authority (FCA) so there are no set rules to protect your business. If companies or buyers move to a new cryptocurrency from yours or stop using digital currencies altogether, it may lose value and become worthless. Apart from this, many cryptocurrency scams have also emerged in the last few years.

Government and people’s opinion about cryptocurrency:

Governments around the world are looking forward to Bitcoin, but major economies, including the United States, are refusing to recognize it as a legitimate way of exchanging money. Countries are trying to understand the impact cryptocurrency could have on their economy soon. Some experts say that investing in crypto assets is risky but also potentially very profitable. Some of them, like Warren Buffet, say that cryptocurrency money poses significant threats to the economic and financial stability of countries, and can be easily exploited in criminal activities. In our country, Pakistan, a committee of the State Bank of Pakistan (SBP) has recommended a ban and other related activities in the country.

The future of cryptocurrency:

Some economic analysts predict that a major crypto revolution is coming as institutional money enters the market. In addition, there is the possibility that the crypto will float, which may add credibility to the blockchain and its use as an alternative to the common currency. Some predict that all those crypto requires now is a verified exchange-traded fund (ETF). The ETF will make it easier for people to invest in Bitcoin. Authorities are also planning to create Crypto regulations to make them safer and more secure. People's investment in cryptocurrency will go up significantly if developed countries adopt it. If this happens, the next generation will look at the new digital currency revolution.