Cryptocurrency

A cryptocurrency (or crypto currency) is a digital asset designed to figure as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a very very form of computerized database using strong cryptography to secure transaction records, to regulate the creation of additional coins, and to verify the transfer of coin ownership. It typically doesn't exist in physical form (like paper money) and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as against centralized digital currency and central banking systems. When a cryptocurrency is minted or created before issuance or issued by one issuer, it's generally considered centralized. When implemented with decentralized control, each cryptocurrency works through distributed ledger technology, typically a blockchain, that is a public financial transaction database.

Bitcoin, first released as open-source software in 2009, is that the first decentralized cryptocurrency. Since the release of bitcoin, over 6,000 altcoins (alternative variants of bitcoin, or other cryptocurrencies) are created.

Why are cryptocurrencies so popular?

Cryptocurrencies appeal to their supporters for a range of reasons. Here are a number of the most popular:

• Supporters see cryptocurrencies like bitcoin because the currency of the future and are racing to buy them now, presumably before they become more valuable.

• Some supporters just like the fact that cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the worth of cash via inflation.

• Other supporters just like the technology behind cryptocurrencies, the blockchain, because it’s a decentralized processing and recording system and might be safer than traditional payment systems.

• Some speculators like cryptocurrencies because they’re increasing in value and don't have any interest in the currencies’ long-term acceptance as a way to move money

Why is Cryptocurrency so important?

• Using cryptocurrencies eliminates the requirement of middleman (such as banks), offers more secure, faster transfers, eliminates the chance of credit card fraud and brings smart contracts, escrow and machine payment contracts capabilities.

• Cryptocurrency was created to enable anonymous wire transfers. Additionally, now it's a powerful investment tool; that's , it can be used to make money. Like regular money, cryptocurrency could be a universal product that may serve as a measure of value when buying and selling other goods.

• Now a days crypto currency can be use in our daily needs and necessity like ordering and paying foods, reservation and booking for hotels and restaurants, and sometimes other country use it as payment for transportation.

Money

Money is any object that's generally accepted as payment for goods and services and repayment of debts during a given socioeconomic context or country. Money comes in three forms: commodity money, fiat money, and fiduciary money.

Many items are historically used as commodity money, including naturally scarce precious metals, conch shells, barley beads, and other things that were considered to own value. the worth of commodity money comes from the commodity out of which it's made. The commodity itself constitutes the money, and therefore the money is that the commodity.

Fiat money is money whose value isn't derived from any intrinsic value or guarantee that it may be converted into a valuable commodity (such as gold). Instead, it's value only by government order (fiat). Usually, the govt declares the fiat currency to be legal tender, making it unlawful to not accept the fiat currency as a method of repayment for all debts. paper money is an example of fiat money.

Fiduciary money includes demand deposits (such as checking accounts) of banks. Fiduciary money is accepted on the idea of the trust its issuer (the bank) commands.

Most modern monetary systems are supported fiat money. However, for many of history, most money was commodity money, like gold and silver coins.

Functions of money

Money has three primary functions. it's a medium of exchange, a unit of account, and a store of value:

• Medium of Exchange: When money is employed to intermediate the exchange of products and services, it's performing a function as a medium of exchange.

• Unit of Account: it's a typical numerical unit of measurement of market price of products , services, and other transactions. it's a standard of relative worth and deferred payment, and as such could be a necessary prerequisite for the formulation of economic agreements that involve debt. To function as a unit of account, money must be divisible into smaller units without loss valuable, fungible (one unit or piece must be perceived as like any other), and a selected weight or size to be verifiably countable.

• Store of Value: To act as a store of value, money must be reliably saved, stored, and retrieved. It must be predictably usable as a medium of exchange when it's retrieved. Additionally, the worth of cash must remain stable over time.

Money has several defining characteristics. It is:

• Durable.

• Divisible.

• Portable.

• Liquid.

• A unit of account.

• Legal tender.

• Resistant to counterfeiting.

Money serves four primary purposes. It is:

• A medium of exchange: an object that's generally accepted as a sort of payment.

• A unit of account: a method of keeping track of what proportion something is worth.

• A store of value: it may be held and exchanged later for goods and services at an approximate value.

• A standard of deferred payments (this isn't considered a defining purpose of cash by all economists)

SOURCES:

https://en.m.wikipedia.org/wiki/Cryptocurrency

https://www.nerdwallet.com/blog/investing/cryptocurrency-7-things-to-know/

https://www.etoro.com/news-and-analysis/market-insights/the-good-side-of-crypto/

https://medium.com/broxus/what-is-the-purpose-of-cryptocurrency-c9ebf42f9e9d

https://courses.lumenlearning.com/boundless-economics/chapter/introducing-money/