Now I know you’ve heard about cryptocurrency. The latest phenomenon that is lacing pockets with investment returns. Your friends are in on it, your colleagues are involved and even your childhood babysitter has a bit of funds circling in crypto. You’ve thought about making the step but have never been entirely sure what it is you’re getting yourself into. Allow me to simplify it for you.
What is cryptocurrency?
Cryptocurrency is simply a digital currency. It is controlled by a decentralised network, based on a blockchain technology. In other words, as oppose to transactions going through a central authority, that may charge a service fee or leverage the position of being the middle man, blockchain allows transactions to be direct and secure when purchasing goods and services/transferring between two parties; as well as all the history of transactions and digital assets to be easily accessible and displayed.
How far can cryptocurrency go?
Well when discussing cryptocurrency, you would be hard-pressed to meet someone who hasn\’t heard of the original crypto, Bitcoin. Within Bitcoins life span, released in 2009, the coin has managed to shake and disrupt the banking and financial sector worldwide, as governments panic in a desperate attempt to try and police a growing movement in which they don’t understand. Countries such as China, Russia and Vietnam, to name a few, have essentially frowned upon the use of Bitcoin; essentially banned in China with banks being prohibited from transacting Bitcoin, whereas Russia and Vietnam just don’t see Bitcoin as a legitimate form of payment as oppose to regulated.
Then there are an array of altcoins (cryptocurrencies that aren’t Bitcoin are referred to as altcoins), that have made shockwaves in there own sectors. Sectors such as decentralised finance (Ethereum, Cardano etc), Non-refundable tokens (NFTs) (Theta, Decentraland) and an ever growing community every single day.
The opportunities for cryptocurrency are endless.
