Cryptocurrency: The Global Currency
The evolution of technology has engendered Cryptocurrency. Now, before decoding cryptocurrency and its benefits and future, let’s decode the word, ‘Cryptocurrency’. The word is made by merging two terms- crypto and currency. The term ‘crypto’ comes from cryptography, which is a method used to secure communication, using encryption and decryption, between the main parties in the presence of a third party with ill intentions such as fraud. Next comes the word currency, which literally means money in any form used as a medium of exchange. So, by decoding the words we get the meaning of cryptocurrency which is a form of money used as a medium of exchange with help of a method which secures transactions by ciphering and deciphering various algorithms.
As a matter of fact, cryptocurrency is the future and will transform the face of business forever. Cryptocurrency is extremely secure and established as it is unsusceptible to counterfeiting, does not require a centralized authority and most importantly, is extremely arduous to decipher into as it is protected by impenetrable algorithms.
Statistically speaking, research shows that by 2030, 25% of the national currencies of the world would be cryptocurrencies. There will also be an increased acceptance of cryptocurrencies, especially when it comes to consumers.
Not only are cryptocurrencies decentralized, but also are environment-friendly. Due to its decentralized nature and complexed algorithms, it is very unlikely for there to be a data breach. Even if there is one, a person will only be able to get access to one particular transaction made and will not be remotely close to hacking down the entire server, thereby making it extremely guarded and reliable. It is actually true that we will move one step closer to abating global warming by adapting cryptocurrency as it is highly beneficial for the environment. 27,378 lakh “Rs.2000” notes are printed yearly as of March-end 2020. One cannot even imagine the extensive number of trees that are cut down to print paper currency.
Adding to the points above, the major difference between digital currency and cryptocurrency is that they are centralized and decentralized, respectively. Digital currency is centralized and usually heavily manipulated by banks and governments. It is regulated and authorized by federal banks. Each and every transaction goes through public scrutiny. On the contrary, when it comes to cryptocurrency, you are in charge and responsible. There are no middlemen involved and you can perform transactions without worrying about it being examined.
Of course, every significant revelation comes with risks. It is precisely the same with cryptocurrencies. There are risks such as high volatility indexes, but also ways to lessen them. For example, in 1968, people had issues with even keeping gold. However, with certain regulations, it was normalized. Similarly, there should be certain implementations which helps improve the matter as a whole, not control it altogether. The most important thing is to bring it in the system. If we do not, we will greatly begin to lack in advancement of technology and the progress made will start to deteriorate.
Cryptocurrency is not necessarily based on transactional efficiency; it is an asset class. It will directly help those who live in poverty. It is also accessible to all; you only need the skills and knowledge for it. Also, there will finally be true financial freedom; something everyone has longed for. It goes without saying that cryptocurrency is a relatively better method of transaction rather than pieces of paper. It will soon be a luminary for global economy.
When it comes to potential risks with regard to constant value, that too will start to improve. Several companies have already started stockpiling large values in various cryptocurrencies. This in turn has also motivated individual investors in investing into the same.
In conclusion, we should definitely consider bringing cryptocurrencies in the system. Even though it comes with its risks, it is a great investment in the long-run. It will benefit all, financially as well as benefit the environment. Technology has been gifted to us, and with its appropriate use, we are currently looking at a revolutionary invention which should be used to our advantage.
