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Future of Cryptocurrency

  1. Khushii21
    Ice Cream Sandwich May 14, 2021

    Khushii21 , May 14, 2021 :
    1620997069699_crypto.png

    We've been seeing a large interest and growth of crypto currency all over the world. From investing, to mining, to trading, and now also for purchases, cryptocurrency is emerging as a potential future currency for the world. So the first question that arises is what is cryptocurrency?

    At present the money transactions from one person to another person go through financial institutions such as banks. The invention of cryptocurrency empowered by blockchain technology has allowed transactions without the need of intermediary institutions. Through cryptocurrency, users can directly send money .

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    The first cryptocurrency was Bitcoin , invented by ‘ Satoshi Nakamoto’ . Nobody knows ‘ Satoshi Nakamoto’. I guess the reason for Nakamoto’s anonymity is the fact that creators of alternative currencies are likely to attract the attention of authorities and criminals.Also before the mine server ban, the mining rate was in Satoshis per hour. A Satoshi is also the smallest unit of Bitcoin currency. 100 million Satoshis are equal to 1 Bitcoin.

    Now how does it exactly work?

    In Layman terms, Every transaction of the coin is stored as a block, and all the transactions for the particular coin are connected like a chain, hence the name Blockchain technology. All these details are available in a public ledger, which can be accessed by anyone. For every coin, we can know the transactions of its exchange.


    Blockchain.jpg
    After the invention of bitcoin , there were the emergence of similar cryptocurrencies such as Etherum, Ripple and the current popular being Dogecoin. Since the code of bitcoin is open source, anyone can read the code and make their own version of cryptocurrency with their own modifications. If you have the knowledge and experience about crypto trading, then you must know that there are different generations of cryptocurrencies.

    First generation – Bitcoin
    Second generation – Ethereum
    Third generation – Cardano
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    PRO’s:

    1. Lower fees: Since they do not have regulatory bodies, it is a type of decentralised currency. So, the transactions require much lower fees.

    2. Difficult to hack: Every transaction will be recorded in the public ledger, and it is almost impossible to modify these details by hacking because if someone modifies the details of one block, other blocks which are connected to it won’t accept the modifications. To make it work, one has to hack all the blocks in the chain, which is difficult.

    3. Boon for weaker economy countries: Cryptocurrencies can be a very good alternative for countries with weak economies. It is because of the simple reason that a weak economy results in the fall of currency value which in turn means that the country would need to pay more money to other countries for trade, service etc. But if they use cryptocurrency, they can avoid the situation to some extent because the value of cryptocurrency depends on international demand and not the national economy.

    4.It can provide protection from debased currencies and the threat of rising inflation. images (10).jpeg




    CON’s:

    1. Very Volatile: Cryptocurrency is very volatile and has the potential for large losses. Cryptocurrency has no value of itself and it depends on its demand. For example if 100 people want to buy bitcoin then the demand of bitcoin will increase but if these 100 people sell their bitcoin to invest in another cryptocurrency say dogecoin then the value will decrease. So for this issue we cannot be totally reliant on cryptocurrency.

    2.Limited acceptance of cryptocurrency : While bitcoin and some other cryptocurrencies are now accepted across a growing number of payment platforms, the number of places where one can exchange cryptocurrencies for real goods and services remains very limited.

    3.No law to govern them: Cryptocurrencies are a construct of the private sector with no official oversight. This means that they are wide open to being exploited by criminals. There is no international law to govern the same unlike the money you save in a bank. For example, If you lose your virtual coins then nobody can retrieve them for you .

    4.Cause of illegal activities:In public ledgers, personal information is not required. Because of this, cryptocurrencies are being used for illegal activities like drug dealing etc


    Right now it is still in its initial stages and the technology is constantly evolving. So if it is evolved in such a way that the loopholes are solved, it can be a very viable option and may compete with formal financial institutions.

    Currently, people are looking at it as an expectation to become rich by investing and mining in them. Whatever your interest or motivation maybe, experts stress the importance of making sure you understand the unique volatility and risk factors of cryptocurrency before investing.

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    Even if cryptocurrency faces extinction, it is a very useful technology because of the blockchain system. Be mindful, we have the fourth generation of blockchain also coming up soon and this battle is going to get even more interesting. As we are not potentially getting to the phase of increased adoption, winners will emerge faster – or, let’s say losers will fade away faster!
    Thank you so much for reading this thread and a big shout out to @Yash Pratap Singh. for this header [e]1f31f[/e]

    (All Image sources : Google images)
     
    Last edited: May 14, 2021

    #1
  2. Yash Pratap Singh.
    Lollipop May 14, 2021

    Yash Pratap Singh. , May 14, 2021 :
    Thanks for the thread!
    Indeed, crypto can be a potential future currency...only if governments go with it...

    Though, the odds don't really seem to be in its favor currently...and recently, Tesla also banned the use of BTC for purchases

    Ahh....only a few major servers were banned, and only in India 😉
    I remember those days...mining Satoshis in decimals lol - I got close to 26127 Satoshis

    @Venky61 @McJader @Tilak G. @Aarav Sahni
    We're ready bois...

    You missed the '.' in the end of my name 😛
     
    Last edited: May 14, 2021

    #2
  3. PritishPriyam
    Ice Cream Sandwich May 14, 2021


    #3
    MRTLima, iamrj, buntycubal and 6 others like this.
  4. Dresa91
    User of the Year 2016; Most Active User 2020 May 14, 2021

    Dresa91 , May 14, 2021 :
    Thank you for this informative thread:)
    Great work:)
     

    #4
  5. McJader
    Marshmallow May 14, 2021

    McJader , May 14, 2021 :
    Wow, this is an awesome thread @Khushii21
    Very informative
     

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  7. Mila__
    Froyo May 14, 2021

    Mila__ , via OnePlus Nord , May 14, 2021 :
    Thank you for the post! It is a really interested subject and you approached all the main topics regarding it. I liked how you discussed the pros and cons. It helped the flow's text and made it easy going. Well done!
     

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  8. PritishPriyam
    Ice Cream Sandwich May 14, 2021


    #8
  9. Yash Pratap Singh.
    Lollipop May 14, 2021


    #9
  10. Aarav Sahni
    Ice Cream Sandwich May 14, 2021

    Aarav Sahni , via OnePlus 7 , May 14, 2021 :
    Thank you @Khushii21 for such an informative thread , I already find crypto currencies very intriguing and thus found your thread to be very interesting
    Also the thread was very well written 🤩
     

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  11. Helder_DAlmeida
    Marshmallow May 14, 2021


    #11
  12. Aarav Sahni
    Ice Cream Sandwich May 14, 2021

    Aarav Sahni , via OnePlus 7 , May 14, 2021 :
    Oh yes we are 😁


    You have to do something about this 😂😂
    The number of people forgetting to add the "." at the end of your name is increasing day by day 😂
     

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  13. Adesh.sanmukh
    KitKat May 14, 2021


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  14. Adesh.sanmukh
    KitKat May 14, 2021

    Adesh.sanmukh , via OnePlus 6 , May 14, 2021 :
    When doge decrease 40 down buy some coins and hold don't sell ,it will be reach 2$ soon , when Elon Musk tweets about doge think it will definitely increse the price no doubt at all Elon Musk is promoting more of doge not bitcoin
     

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  15. Yash Pratap Singh.
    Lollipop May 14, 2021

    Yash Pratap Singh. , May 14, 2021 :
    And yet he's the one not accepting BTC for Tesla now...

    Of course, but still, 2.10 is the dream...
     

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  16. PritishPriyam
    Ice Cream Sandwich May 14, 2021

    PritishPriyam , May 14, 2021 :
    But how do I buy crypto.
    Which platform should I use??
     

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  17. Yash Pratap Singh.
    Lollipop May 14, 2021


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  18. Adesh.sanmukh
    KitKat May 14, 2021

    Adesh.sanmukh , May 14, 2021 :
    Thanks for this thread , informative & helpful for many crypto traders 🥰 @Khushii21
     

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  19. Adesh.sanmukh
    KitKat May 14, 2021

    Adesh.sanmukh , May 14, 2021 :
    Use wazirax app I am using that one only , except that many r there
    Wazirax is easy to trade
     

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  20. PritishPriyam
    Ice Cream Sandwich May 14, 2021

    PritishPriyam , May 14, 2021 :
    Thank u guys.
    I was literally confused, with the platform I should choose.
    I'll straight away create a account in there
     

    #20