We all know about our ancient time when we used to have a “BARTER SYSTEM” where people followed the practices like exchanging one’s goods and services for someone else’s. This system was much prevalent in olden times, and as history evolved itself people started rendering gold for buying things or exchanging gold for gold. Further, with time the paper currency came into being and people shifted to this. Now in the current system that we follow after the internet came into existence is the digital economy. Everything has become digital.
Cryptocurrency is that digital currency that came into existence after the recession that everyone faced globally in 2008. The first such cryptocurrency was “BITCOIN”. Bitcoin is considered the mother of all currencies and escalation in its value has shown that how famous it has become in recent times. People are trying their luck every day through different means to make a place in this digital world.
COMPARISON WITH OTHER MECHANISMS
The main point of differentiation between cryptocurrency and other digital currency is that it does not follow the instructions of any intermediary whereas such is not the case with other digital mechanisms. If we take an example, while we shop on these global platforms like AMAZON etc. the platform that we are using is the intermediary on behalf of the real seller. Here we don’t know:
- About the seller,
- The money to whom it is being transferred;
- What fees are being charged by the intermediary per transaction?
Similarly, if we talk about transactions through banks or booking an online cab or the different online food plazas, a centralized system is controlling it. This is how it is different and when we talk about cryptocurrency there is no such mechanism and confusion creation. We directly deal with the other party irrespective of the country, goods, or any other type of platform. This happens through the blockchain process which enables the transfer of money directly from one person to another person. The blockchain ensures that trust that people will not be deceived by any online frauds. Because it has a block system that stores your data through mathematical algorithms which are called codes. Cryptocurrency is considered an online form of gold that proves to be always beneficial, and in the digital market, Bitcoin is considered that gold. There are many benefits of bitcoin trading, one of them is buying movie tickets using bitcoins.
Initially, there was just one cryptocurrency that existed and that was BITCOIN but after this, there are many currencies that tried their luck and doing pretty well. Such currencies are ETHEREUM, DOGECOIN, RIPPLE, LITECOIN, BITCOIN CASH, and many more. If we talk about the growth, it has grown immensely and has got many renowned investors talking about the benefits that may be derived from investing. Talking about growth in terms of value, the Bitcoin that had zero value when it started, is now having a value of more than 4500 dollars which is a lot more in such a short span of 12-13 years. Recently the growth that DOGECOIN has shown is also very fascinating and no one had thought of such an unexpected growth. Then Ethereum also which after Bitcoin is called the second-largest digital currency is also performing pretty well.
So, in the above-written article, I have tried to give you an idea about the growth of cryptocurrency and its working. Its works through the process of blockchain, which keeps all the log of your data whether it is the previous or your latest data. The digital currency’s escalation in such a short time is pretty fascinating and you must try your luck. It is going to be in trend just like the internet, without which people cannot think of growing in their lives.