What is Cryptocurrency and why is it so Popular?

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Currency has been one of the most ancient inventions of our civilization. The caveman used a barter system to acquire the goods and services they required. As part of it, they exchanged goods with each other depending upon their needs. For instance, if an individual required oranges and had apples. They would trade their apples with the person who had oranges and wanted apples. 

The barter system had countless loopholes and was quite complex to carry out. Some of the basic criteria based on which it lagged were, to use the barter system, you had to find a person having the commodity you want and you should have had the commodity that might interest the other person. 

There has to be a common ground to compare two different commodities, which the barter system clearly lacked. You cannot always split a commodity into pieces, depending upon your needs. What if an animal is supposed to be traded but not as a whole. You cannot trade an alive animal into pieces. All these commodities can’t be carried with you everywhere and therefore it won’t help you every time. 

A minted form of currency was brought into play in 110 BC and it was followed by the era of gold-plated florins in 1250 AD. After 1600 AD, paper currency occupied all businesses. The introduction of currency brought a drastic improvement in trade and made it a smoother process. 

As time passed, several developments were made in the department of currency and gradually, economists came up with the concept of digital currency. It allowed people to transfer their money to another person in their bank accounts and with just one click. As quick and efficient as this system was, it imposed a great threat of digital theft. And hence, the concept of cryptocurrency was proposed before the world to safeguard the transaction of money and its transfer from the sender to the receiver. 

What is cryptocurrency?

Cryptocurrency presents online or digital currency that can be exchanged on online portals in exchange for the commodities provided by them. Several companies have come up with their own cryptocurrency. So if you want to buy their commodity, you need to first get your regular money into their currency and then proceed with the payment. It functions quite similar to how people buy tokens and chips at casinos. 

Cryptocurrencies function on the concept of blockchains which is a decentralized technology. Blockchain keeps a record of all the transactions made using cryptocurrency and ensures the safety of all the transactions. It maintains a record of all the transactions between the buyer and the seller or the lender and the receiver. 

Best cryptocurrency options available:

Based on the surveys conducted by several websites studying cryptocurrency and its activities, there are several companies that have aced the market and how. Bitcoin ranks first in the list of these companies and has a market capitalization of $735.3 billion. Ethereum ranks second in the list of these companies and has a market capitalization of $324.2 billion. 

Tether ranks third in the list of these companies and has a market capitalization of $61 billion. Binance Coin ranks fourth in the list of these companies and has a market capitalization of $57.5 billion. Cardano ranks fifth in the list of these companies and has a market capitalization of $54.6 billion. XRP ranks sixth in the list of these companies and has a market capitalization of $46.5 billion.

Dogecoin ranks seventh in the list of these companies and has a market capitalization of $44 billion. Polkadot ranks eighth in the list of these companies and has a market capitalization of $22.1 billion. USD Coin ranks ninth in the list of these companies and has a market capitalization of $21.9 billion. Internet Computer ranks tenth in the list of these companies and has a market capitalization of $16.7 billion.

The reason behind their popularity:

Anyone who understands the economy and finances and has analyzed patterns will understand that in the coming years, cryptocurrency shall be soaring to new heights and will become more popular than ever. People are doing their best to go ahead and invest in cryptocurrency before its cost goes up.

Whenever central banks are involved in the process of money transfer and transaction, the process becomes more complicated. At times the server of the banks becomes a hurdle and stops you from a smooth transaction. These banks also reduce the value of your money whenever inflation hits. Cryptocurrencies are in no way involved with these banks and therefore lesser complications are faced.

The cryptocurrencies are managed by a technology known as the blockchain. The blockchain not only ensures the safety of transactions but also keeps a record of all the transactions. Therefore, cryptocurrencies are one of the safest ways of money transactions that can be carried out, keeping your money safe.

Various economists across the world have expressed their interest in cryptocurrency since it does not depend on our regular currency and isn’t related to its decreasing or increasing values. Also, the patterns do hint towards a brighter future for cryptocurrencies.

Conclusion:

Currency has been one of the most ancient inventions of our civilization. Ancient people in 110 BC used the barter system to acquire the goods and services they required. The barter system was quite flawed due to its instability. In 1250 AD, gold-plated florins popularised, and in 1600 AD, paper currency occupied all the businesses. 

Cryptocurrency is evolving as the new form of currency. It presents online or digital currency that can be exchanged on online portals in exchange for the commodities provided by them. Some famous cryptocurrencies are Bitcoin, Ethereum, Tether, Binance Coin, Cardano, XRP, Dogecoin, Polkadot, USD Coin, and Internet Computer.

Some primary reasons behind the popularity of cryptocurrency are that people believe cryptocurrency shall be soaring to new heights in the future and are therefore investing heavily in it. The central banks are not involved in the process therefore fewer complications are involved. Blockchain technology ensures safety and economists across the globe consider it safer to invest in.

Disclaimer : This and other personal blog posts are not reviewed, monitored or endorsed by Cryptoknowmics. The content is solely the view of the author and Cryptoknowmics is not responsible for the authenticity of content of this post in any way. Our curated content which is handpicked by our editorial team may be viewed here.
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