Are you aware that there is a different type of currencies in the world such as Dollar, Yen, Rupee and Pound? However all of these are actually same type of currencies and they have some similarities like a gold reserve which backs them up, they all are controlled by central institutions like the banks and the government can regulate and govern the movement of such currencies. However, a new type of currency which is a digital currency is becoming popular. This type of currency is called as cryptocurrency because they make use of cryptography to make sure that their transactions are safe.
The first cryptocurrency was called as Bitcoin which was introduced in 2009 and its creator was Satoshi Nakamoto. However after Bitcoin was introduced and it was a successful currency, many cryptocurrencies were introduced and now there are almost 700 currencies in the digital world. Even though there are so many digital currencies, only 9 currencies are active.
What are the reasons behind the popularity of cryptocurrencies?
- These currencies are getting popular as they are quite safe and the transactions are transparent and instant.
- As there is no single central body which controls or governs these currencies, there are fewer regulations and rules.
- Most of these currencies have a set limit which means that no one can create them on a whim.
- These currencies can be used for theonline purchase of products and you can buy them at the online exchange.
- As the transaction fees in these currencies are very less, many businesses are preferring cryptocurrencies rather than the banks for their transactions.
- Cryptocurrency can be stored in a digital account or digital wallet, so they cannot be stolen from you like paper currencies can be.
- Cryptocurrency cannot be counterfeited as they are not like the other currencies which are printed on papers.
- It is very easy to open a cryptocurrency account compared to opening a bank account.
These cryptocurrencies are becoming afavorite of people due to the above mentions reasons, but whether they can be safe and controlled like the paper currencies, is the questions asked by many people. As these currencies are not controlled by and one institution, there is no regulating body if there are any legal concerns. One concern which all the governments are feeling is the possible use of these currencies by negative elements like criminals. As the transactions remain anonymous, they can be used for transactions in theblack market by criminals. You can use your digital currency if the computer is down due to avirus or there is data loss propecia pills. So we cannot say that your money in the form of digital currency is totally safe. Traditionally thepaper currencies have a protection system for their loss or theft, but these are no such system for the cryptocurrency. These currencies are volatile in nature and there is no consistency or stability in thesecurrencies as compared to the paper currencies. Although they are very popular and the popularity is increasing day by day, you should consult experts before purchasing any cryptocurrency.