When we hear the word cryptocurrency, the principal term that strikes a chord is ‘Bitcoins’. Bitcoin was the first and is most critical digital currency, brought to us by Satoshi Nakamoto.
Cryptocurrencies are absolutely virtual and don’t have a focal body to keep a record of your information. Your cryptocurrency can be totally wiped out if, god forbid, your PC crashes and there is no accessible backup of your possessions. An encryption method is utilised for the control of the units created and confirm the exchange of assets.
It is exceptionally simple to transfer and exchange funds using cryptocurrencies. These exchanges are done between two parties by the utilisation of a public and private key. The utilisation of these keys for security is a fundamental technique of cryptography — that’s why they’re called cryptocurrencies. However, there are also negative consequences of this — the anonymous nature of cryptographic money encourages money laundering and tax evasion.
Transactions done through digital currencies are irreversible. On the off chance that you send the money; you are not getting it back unless it is sent back by the receiver.
Uses of cryptocurrencies
Investing into a cryptocurrency can be exceptionally advantageous to you, as it has many uses that would interest you. Bitcoin finds itself being used in a bunch of transactions in India.
- Investment: As cryptographic forms of money are very new in the financial market, putting resources into it can be extremely productive for you as the market’s speculation can give enormous returns. Just look at bitcoin’s rise! However, this doesn’t mean it is predictable — currencies also tend to be volatile.
- Donations: Your transactions are absolutely anonymous and safe. Along these lines, it is an ideal method for donating to an association (or political party?). Peer to peer sharing of cryptography ensures that it spans to the proposed hand safely.
- Anonymous Payments: Payments utilizing cryptocurrencies are quick and dependable. They guarantee security and can spare you a great deal of time in making sure payments go through reliably.
Elaborating on this discussion, there are plenty of reasons you *should* be using cryptocurrencies:
- Fraud: Cryptocurrencies are advanced and virtual. Thus, they can’t be forged. Expect complete security (unless you do not follow safe practices). Once sent, transactions are not getting reversed.
- Immediate settlement: Digital currencies can be designed to hold “property rights database”. It can be utilized to kill third-party involvement in your transactions. Buying land can become a lot simpler. The time required to arrange for the settlement is less.
- Transaction fees: The transaction fees for cryptocurrencies are negligible — never nearly as much as what banks and financial corporations charge.
- Easy access: The internet is everywhere. But access to credit? Not so much. Guess which of the two between cryptocurrencies and credit cards will make it to people first.
- International consistency: Since there are no regulatory bodies, no one is stopping you from using these coins, globally. Use them in India, and in the US as well!
Most common cryptocurrencies
- Bitcoin is of course, the most commonly used cryptocurrency. It was introduced in 2009 and was created by ‘Satoshi Nakamoto’. It has a market capitalisation of around $45 billion as of July 2017.
- Ethereum was developed in 2015. It is the second most valuable and popular cryptocurrency presently. It has a market capitalisation of around $18 billion as of July 2017.
- Litecoin is very similar to bitcoin. It has quickly adapted new upgradations such as faster payment processes to allow more transaction throughput. The total value of Litecoin is around $2.1 billion lately in the first half of 2017.
In this day and age of new development, cryptocurrencies have made a mind boggling debut and have been extremely prominent from that point on. They have been a monetary sensation, and individuals everywhere throughout the world are presently busy investing into them. If you haven’t begun already, it’d be wise to get started with bitcoin on Unocoin, India’s first bitcoin exchange!