An Unconventional Intro to Cryptocurrency


 

An Unconventional Intro to Cryptocurrency


Cryptocurrency – What is it?

Cryptocurrency is global digital currency that rests on blockchain technology. A mouthful, clearly, but simply put, it is digital currency that is not backed by or regulated by any government in the world. It is available in all countries and it is the same value in all countries as well. Some popular examples of cryptocurrencies include bitcoin and ethereum.

 



Why Cryptocurrency?

The main idea behind cryptocurrency is decentralization of the value of currency. During the financial meltdown of 2008, the dollar, upon which the all other world currencies were pegged against, drastically lost value. That meant that when the value of the US dollar decreased, it affected currencies all over the world. At the time if cryptocurrency was as mainstream as traditional currency, the value of the cryptocurrency may not have been affected at all, because its value is not pegged against any other currency.

 


Is it Legal?

The currency affiliated with each country is legal tender. For example the dollar, the pound, the yen, the kroner, all are legal tender and are managed by each country’s central bank. Since cryptocurrency is still an emerging player as a medium of exchange, it is currently legal in a few countries, and under very strict laws. Cryptocurrency is not backed by the laws of any country, and it seems like governments are taking a wait-and-see approach to it.

 


Is Cryptocurrency Safe?

You may think that since it is not regulated by any legal framework it is extremely risky. To some extent you may be right, but not completely. Before you embark on acquiring or trading in cryptocurrency you need to understand the positive aspects as well, so that you can make an informed decision. For starters, the technology behind cryptocurrency, known as block chain, is very difficult to hack, and the security is always being augmented. Secondly, it is a very hot commodity right now, and as its popularity rises, its value is projected to rise as well. Of course there are risks involved, but as if you go by current and past trends, crypto is not a passing fad, it is here to stay.

 

It would be wise to stay curious and gather more facts on cryptocurrency before taking any course of action.

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