What is Cryptocurrency?
Cryptocurrency is a form of virtual currency which is digitalized on the internet. It is also can’t be control by government or any person, we called it “Decentralized” that is based on blockchain technology hence it is immune to any government interference or manipulation.
Bitcoins one of the cryptocurrency that is created at the year of 2009 by a anonymous named “Satoshi Nakamoto”. No one know who is the creator, and if it’s a group or an individual.
Cryptocurrency act as a payment method that can be used to exchange goods and services. Since it is a decentralized it can be use store money and execute payments.
Individuals are able to make profit from it as well, as it has multiple financial tools for people to participate into crypto currency market. Which it is similar to investing in stocks and commodities. Multiple of way to make profits like
1. Staking
2. Trading
4. Investing
5. ICO
7. Mining
Since crypto currency is now advancing in a very terrifying speed. You can expect a very massive level of wealth transferring among the crypto market. Hence, you can say it is one of the best ways to make money with current trend.
Pros & Cons of Cryptocurrency
Let’s talk about the core advantage/disadvantage of crypto currency and how can it bring values to our life. As we are in the fastest growing digital asset era, you must take advantage of the technology and even implement blockchain into your business model.
Advantages
1. Conveniency of transferring funds
As cryptocurrency uses smart contract to from sort of trust among two parties to complete their transactions directly, without any third party like banks or any other institutions to guarantee the payment. There is a minimal processing fees between 2 parties transactions overseas unlike the financial institutions. Also, it can be done by a short time of a period with no effort.
2. Stability
there is no way of reversed or alter any data once it is registered into the blockchain. Which it gives a lot of transparency If there are any data being remove or alter. So reliability of blockchain increased as data is permanently recorded. This could change the way of business works, as it can uncover some unexpected cost and keeping track each entities of the company.
Disadvantages
1. Data Modification
Since we now know that data cant be alter after its recorded down in the blockchain system. You cant just simply modify the data, and it could cause a slippery slope if the data is not convey correctly.
2. Private keys
Blockchain uses public-key cryptography to give users ownership over their cryptocurrency units. Each blockchain address has a corresponding private key. While the address can be shared, the private key should be kept secret. Users need their private key to access their funds, meaning that they act as their own bank. If a user loses their private key, the money is effectively lost, and there is nothing they can do about it. So your entire funds will be relying on you having your private key, otherwise there will be no assistance on any entities to help you get back your funds.
In a nutshell, Cryptocurrency really did helped solved a lot of monetarily problems. In terms of multiple payment method and with trust-less system to rely on. Even though there are also some downside, but it is still a lifechanging technology that all of us should look into it.
