The usage of digital payments has increased tremendously post COVID-19 situation. China and Asia Pacific regions being the leaders in the digital payment industry have posed tough competition for other countries. The inculcation of more and more payment gateways has resulted in fast transactions and encrypted payments on digital platforms. One such digital medium is cryptocurrency.
Cryptocurrency is a digital asset that acts as a medium of exchange in a virtual form. With the release of bitcoin in 2009, cryptocurrency came into the limelight. Ever since its inception, it has attracted a large number of followers. Many followers want to pursue cryptocurrency as a career or try their hands on cryptocurrency trade. There have many discussions floating around that cryptocurrency has its inception in bitcoins. Read on to know more about bitcoins and the future of cryptocurrency.
Bitcoins are decentralized cryptocurrency and created through a digital process of complex algorithms and crunch numbers. Bitcoins were first released in 2009 and are based on peer-to-peer technology. There is no government interference and no central authority to regulate bitcoins. The flip side is that its value depends on the amount that investors are willing to invest at a moment.
Due to the recent issues with bitcoin, many other companies have started making alternatives to bitcoin and they are collectively called altcoins. Litecoin is an alternative cryptocurrency and is a leading opponent of bitcoin. Founded in 2011, Litecoin soon attracted followers due to its faster transactions. It takes 2.5 minutes to process a transaction which is one-fourth bitcoin processing. Another bitcoin-like asset is Ripple which was launched by OpenCoin in 2012.
Future of Cryptocurrency
Cryptocurrency has come a long way since its inception in 2009. Now it is no more a matter of speculation but it has emerged as an investment instrument. A survey shows that nearly 72 percent of institutional investors are interested in cryptocurrency trade. With the revelation of statistics, it is predicted cryptocurrency trading is much more likely to be treated as trading in gold and stocks. Some business tycoons are of the view that the adoption of block chain technology and crypto currency at a multi-level stakeholder approach should be encouraged. While others think that cryptocurrency is just a mirage.
Despite various issues, cryptocurrency aspires to be a mainstream financial instrument. Owing to the absence of any regulations, the situation of bitcoin and crypto currency trading seems to be difficult. As nobody wants to leave in an unregulated environment, investors and government authorities seem to be grappling about the fate of cryptocurrency. If you are also planning to invest in cryptocurrency, then take it as a highly speculative instrument having no intrinsic value of its own.
You may not be sure of getting back the lost value of the invested money as there is no government interference. Looking at the current scenario, we can’t underestimate the potential of crypto currency. Due to the high-end encryption model and unprecedented performance on the digital platform, the questions about the future of crypto currency seem to be ending. The survey, statistics, and figures show that cryptocurrency has been one of the greatest innovations of this century.