The top internet search reference defines cryptocurrency as "a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. This is one of the simplest explanations of what the most recent trend of cryptocurrency actually stands for and represents.
Money has evolved greatly over the years and it is no astonishment that things are going to change even more in the future to come. It would be of interest of yours to know that mostly it is assumed Satoshi Nakamoto, the inventor of Bitcoin came up with the life changing invention of a decentralized digital cash system. There has been constant debate and arguments at the state, the national and the international levels regarding the acceptance and benefits of cryptocurrency. While some appear to be in favor of this new development there are also some who protest it and wish to stick to the traditional concept of money transfers and banking to handle the economic aspect of ones life and country. There have been varied opinions such as cryptocurrencies being unreal money or cryptocurrency being unsafe.
However one important question to be asked is that if people have such notions about it, why are there individuals who are making it big in the field of cryptocurrency? It must be noted and understood why it is growing rapidly as a preferred mode of making a livelihood and how its popularity can be used to ones advantage. It is rightfully said that, what is persistent is change and this is why it is imperative to be abreast with how alterations in the society are taking place and what one must do to adapt and adjust to. Human is a social being and no one survives in isolation and the only key to effective living is making most of the available resources. Examples of cryptocurrency would include, Bitcoin Market Cap, Ethereum Market Cap and Ripple Market Cap.
Key features of cryptocurrency include:
Cryptocurrency v/s Fiat Currency?
Fiat currency is declared a legal tender by the government. It can either be represented electronically, as bank credit or take a physical form, i.e. paper currency and coins. It can be used for the payment of taxes and its supply is controlled by the government or central banks. On the other hand, cryptocurrencies supply is controlled by an algorithm or computer programming methodologies of encryption. In most places they cannot be used to clear taxes and is not a legal tender.?
Apart from these differences, there are no major differences between the two. Both can be used as a medium of exchange, as well as for storing and transferring value. The value for both is governed by scarcity, work, demand, supply and other economic factors. Both can be used for purchase and can be traded on exchange.
Acceptability in Islamic Finance
In the field of Islamic finance as well many are relying upon crypto currency, increasingly
Easy availability and access
The biggest benefit of cryptocurrency is that it is easily available for use to the general mass. This bridges the gap between the affluent and the poorer strata of the society. Anyone is able to access it and use it to their advantage with all equality and ease. Since the mechanism is decentralized in its system of operation, investors from across the world can avail it and reach out to all others. Connecting to investors is now made much easier. One must know how to transfer funds online and then be a part of the large and eternally increasing network of cryptocurrency. Its a huge boost to those with mobile phone who did not previously have knowledge of online money payment but can now have everything easily at their fingertips. This is what is called as digitalization, a term tossed in modern times. No special knowledge is required to handle or use cryptocurrency. The internet and a smartphone are just what you need to go ahead with its usage. With changing times, even those who have not received formal education in structured schools, are able to access the worldwide web.
In modern times, finance management as a subject of study and implementation has gone a sea change under crypto ambit, and wealth management or investment banking firms are more interested in crypto assets management.
Cryptocurrency aids in quick, easy and prompt payments. The task is complete within instants and saves a lot of time. One does not need to key in any credit card or debit card details. It is a top preference these days when no one has the time to visit banks and wait in the queue for long hours or miss out on office work as that is the only time when the banks remain functional. All that is needed is the recipients wallet address. The correct amount to be transferred needs to be entered and a notification of successful payment pops up within minutes, depending on the crypto. There is immediate settlement and leads to no trust issues or question regarding reliability and fraud. Future contracts can also be easily timed and executed absolutely hassle free. There is no payment delay. Blockchain removes all the trouble of third party approval that might be needed otherwise in case of traditional asset transfers. Middlemen, in their own interest, often delay the process and may drag it on for days which creates pressure on the smooth functioning of work and disrupts the flow of actions. One does not require a business account or a utility like withdrawal software.
Cryptocurrency (Bitcoin) is managed by its network of subscribers or users. There is no third-party involvement and a dense grid of computer devices use blockchain to keep the database of records fully safe. The network is evolved, exists and functions on a peer-to-peer or user-to-user basis. There is no place for any middlemen in between. No information needs to be provided to the country�s Government or the central bank. Thus, it is indeed, a decentralized process that is rapidly gaining fame and recognition. The mass collaboration of pseudonyms and anonymity keeps the service ongoing and active for millions of used present in different corners of the world. Cryptocurrency is now taking over the traditional banking methods and that is a total makeover of the very basis of the existence of humanity as economy is the most crucial one out of the key pillars of society.
Cryptocurrency is seriously recognized across borders and no one can say that your cryptocurrency is not money that can be used or is invalid currency. Bill Gates has already claimed about Bitcoin which is one of the cryptocurrencies that Bitcoin is better than currency, where �currency� refers to fiat currency. In fact, what makes it more suitable for international use is that is not affected by country based exchange rates, transaction charges, interest rates or any other related charges which are applicable locally. Thus, it can be used in any country and across countries to make the transaction faster, easier and more reliable. This can go a long way in giving just the needed boost to the economy of a country and subsequently aid in the development of the global economic status and structure. Not a single penny is lost to the exchange rates and just the exact amount is sent over. It literally stands by the motto that �each and every pence counts. In fact, this can also be made use of while travelling to top international destinations for business or pleasure, as the case may be. There is no central bank to define the strict rules of transactions. This is the age of fast forward where one desires to know the basic functioning of things and then go ahead in synchronization with time and learn consequently. No external taxes and impositions, work greatly in the favor of cryptocurrency, which is also one of the most important and useful benefits of cryptocurrency.
People are often worried about chargebacks. This means that once a transaction is shown as successful fraudsters try to reverse the transfer. This leads to huge losses to the recipients who often take time to register what just happened and by the time the terrifying realization dawns, it is already too late. Thus, cryptocurrency is a great means to make sure that there are no chargebacks. Cryptocurrency methodology keeps track that no transactions once completed can be reversed. This makes the deal an ideal one and totally safe and secure from the traps of frauds who are always on the lookout for innocent victims who can be scammed or looted. Though those who have faced similar trouble in the past from traditional and old school banking means may take time to gain trust on cryptocurrency it is absolutely the need of the hour to upgrade to whats new and reap the benefits as soon and as much as possible
The internet has connected the whole world and made it a small well connected family where distance may exist only in terms of lengthy kilometers, and those are in only numbers. Communication has been made easy and so has dealing. People now easily and instantly make networks to expand their businesses and means of work. Cryptocurrency simply makes this easier by using a simple thing like the internet and internet based technologies. The internet has now become a source of cryptocurrency and exists in almost every household, be it the rich class of the society or the not so influential ones. This also provides opportunities to those who do not know the utility of internet to learn about it. It is never too late to learn and cryptocurrency is a superb method to make the world more advanced, sophisticated, informed, active and educated. This has the potential to open a new world of transactions for people and various entities, and it warmly welcomes the future where everything is digitalized or based on the operations of machines and encryption technologies. There is least human intervention. However, the role of humans is also preserved as it would cease to exist if the network of users (humans) stop connecting and making transactions with each other.
Easy availability of loans online, is also a feature of crypto currencies. Loan transactions are growing more in crypto currencies as people investing in them are growth oriented and seek more money so resort to lending and lend more. Thus, more and more crypto currency loans.
These were the key benefits of cryptocurrencies. Since it seems to be such a good deal overall that is why there are still many individuals who do not make use of the fancy services provided by cryptocurrency. Well, the truth is that though these are the advantages of cryptocurrency, there are several till date who are unaware of the concept of digital money and digital currency. It sounds utopian or perfectly idealistic to them. The key to make cryptocurrency a universal truth is to educate the younger as well as older generations , and people from all walks of life, about how it works and why they should avail of it immediately. Though cryptocurrency has not been able to replace old banking techniques, it can be safely said that it is running fast and steadily in the world race and seems to be gaining speed each day. Like every coin has two facets, cryptocurrency too has its cons but the pros for sure outweigh the cons and make it an ideal means of conducting speedy, valid and secure transactions over miles as well as minutes. Thus, now wonder why we need crypto exchanges and relevant services and why their strength needs to grow yet further.
Just as currency exchanges or stock exchanges there are crypto exchanges for crypto assets as there are also for any other commodity as well. There are estimated to be around 100 in strength per the latest records where crypto currencies can be traded. Crypto exchanges are growing as there are such signals which are conductive of pro-crypto currency based development. For this, we may make thorough analysis of benefits of crypto so as to ascertain the demand and supply which would determine the need of crypto exchanges and other crypto based services. Almost all exchanges provide crypto wallet services as well where crypto currencies can be stored .