Ve As life progresses, so does the advancement of science, so does the advancement of economic instruments. There has been a lot of evolution in the thing called currency. From gold, silver or coinage it has become paper money. Advanced technology is being used to prevent counterfeiting. Then L credit card, debit card. With that, economic exchange became easier. These can be called 'digital currencies'. But cryptocurrency has brought the most unimaginable progress. Let's highlight some of its characters.
1. It has no government or institution. Huge populations around the world are circulating these currencies through a kind of secure network. No one is a policy maker, everyone is equal, just a node in the network. This coin will go from buyer to seller directly, without any intermediary, safely and surely. There is no central form of this monetary system, there has been complete decentralization. This is called a direct peer-to-peer network.
2. Bitcoin allows anyone to buy anything from Ghana to China in an instant. No matter the bank, no matter the exchange rate. There is no middle ground, that is the design of this coin.
3. This currency can be quickly moved from one country to another. Bitcoin takes a maximum of 10 minutes. But some other cryptocurrencies may change hands in less time. However, in the current currency transfer system, it takes a few days to move from one country to another.
4. There is a nominal fee to send this coin from one person to another. It does not depend on the amount of money sent again. The same fee for sending one bitcoin and one lakh bitcoins. The current money transfer costs a lot of money.
5. Cryptocurrency transactions cannot be forged. Once transferred, it cannot be returned or changed in any way. In different countries of the world, it is being recorded on thousands of machines. This transaction is irreversible.
. Cryptocurrencies have no inflation. The number of these coins is predetermined, so they can no longer be printed like money. Different countries are trying to increase their purchasing power in the international market by printing more of their currencies openly or secretly, resulting in a currency war. In cryptocurrency this is absolutely impossible. The maximum number of bitcoins is set at 2.1 crore.
Why is Bitcoin so valuable?
There are several reasons for the rise in the price of Bitcoin. These include:
1. It is thought that in the near future everyone around the world will use cryptocurrencies. To put it another way, if someone said 20 years ago that everyone around the world would use a cell phone, it might not seem very believable then. Many feel that this is exactly what is happening here.
2. The number of bitcoins is limited. So even if the price of a bitcoin is much higher, it is not surprising. Because, all the resources of the world have to be bought with that limited bitcoin, so the price of each one will be skyrocketing.
Is it possible to buy anything with bitcoin?
Many things can be bought with Bitcoin nowadays. For example, any product can be bought through Bitcoin from Overstock.com. Many more such businesses are now using Bitcoin as a currency. The idea is that just as credit cards are being used instead of money now, in the future money and credit cards will be replaced by bitcoin or some other coinage.
Why is the price so volatile?
Bitcoin prices rise for all the possibilities mentioned. Again, if any fraud is caught or caught, the price goes down. Again, if a country has previously declared it illegal, or if a country has taken a stand in favor of this currency, the price immediately goes down or goes up a lot. Price increases and decreases are a lot of human psychological issues. Then there are other symbolic currency positions. If the news spreads, Ethereum or Ripple will be the currency of the future, then the price of Bitcoin will go down. For all these reasons, the price of Bitcoin goes up and down. In the meanwhile, lucrative crocodile investors can suddenly increase the price of bitcoin by investing a lot, and suddenly they can take all the money and collapse.
Who is cheating on it?
No one is directly cheating with bitcoin or cryptocurrency. The blockchain that is the basis of this is considered to be the safest. Bitcoin buyer's account is being fraudulent. Bitcoin fraud is perpetrated by intermediaries. People are being warned. More reliable organizations are coming. Passwords and identification methods are becoming more secure. So some news that Bitcoin or cryptocurrency is destroying or will give is not entirely correct.