Crypto currency : A Look into it’s Future

Crypto currency : A Look into it’s Future

Future of Cryptocurrencies

Crypto currency is a digital currency. It has no physical presence, has no centralized body that controls or governs it. Initially a textual concept, it became a reality in 2009, with the creation of BITCOIN, the first crypto currency. This digital currency gets its name from the technology used to craft it. The technology used is an advanced encryption technology, called Cryptography. Hence the name Crypto currency. Blockchain is a term used anonymously with Crypto currency often. It is a technology which acts a digital ledger for crypto currencies. The concept of this digital currency is still not very well understood. Debates are still making rounds about the authenticity and acceptance of these currencies as legal and safe. However, some countries have made acceptance of crypto currencies , legal.

The Future of Crypto:

Crypto currencies have a long battle to fight for their legal tender status. However, there are gaps that crypto currencies fill in which hold hopes for these digital currencies in future. Some of the most tangible reasons for this belief are listed below.

Defies geographical boundaries

Being a digital currency, which is transacted digitally, geographical borders, do not really matter for a crypto currency. The valuation of crypto currencies differ country to country. The reason is the varied value at which each country buys and sells crypto currencies. This is due to demand and supply. For instance, crypto currency in India costs more and yet attracts investments. This is due to the fact that these currencies do not have any standardized international price. Moreover with no convergence of thoughts on the same, values of these digital currencies differ. This however does not stop international transactions. These transactions are quick and valid. Given the way digital currency transactions operate, with understanding people will look at leveraging on this easy transaction. Convenience is a key point which holds the light for a bright future of crypto currencies.

Crypto currencies are beyond world events

Unlike the speculative world of trading, though crypto currencies also thrive on speculation, it is undeterred by world events. Natural calamities, policy changes or government changes etc do not affect crypto currencies. These digital currencies are affected only when there are developments that directly impact crypto currencies. For instance, when China banned crypto currencies, prices crashed and plunged within hours. On the other hand, with Japan legalizing Bitcoin in 2017, prices spiked over the top, in a matter of seconds.

This is one of the strong points of digital currencies. Though volatile in nature, with prices soaring and crashing within a matter of hours, it is stable since, the market does not react to any other global event.

Crypto currencies are safe

Imagine your money, in the wallet. In a mall or at a public place how safe is it? Now imagine the same stored away in a vault with a combination of codes. How susceptible is it to theft? The latter is safer and almost unbreakable. Safety of crypto currencies are on the same lines, only much more complex.

Safety of crypto currencies is a controversial topic, especially since, it is not understood as much. There are three kinds of wallets to store a crypto currency, categorized widely into:

  • ONLINE WALLET
  • OFFLINE WALLET
  • HARDWARE WALLET

Crypto Wallet Types

The online wallet is an accessible platform which can be hacked (though it is not possible as easily). The offline wallet however is relatively safer when your wallet is offline. It is almost impossible to hack into. The third wallet, called the hardware wallet is the most secure for the simple reason that you carry this device in your accessory like a pen drive. Even if it gets stolen, deciphering the encrypted code is next to impossible. Kishor M, an expert of the field and a Dubai based trading expert states that crypto currencies are encrypted and so are the wallets. Safety is safe with these wallets.

Cannot be centralized

The USP of crypto currencies is that it is decentralized. Kishore M, says, “Crypto currency market will never be centralized. At most it can be regulated, which will earn crypto currencies the approval of the governments to be a legal tender for transactions. This will in fact rid crypto currencies of one of its most menacing bottlenecks: that of being used for illegal activities”.

Reasons why Crypto currencies have a future

Defies geographical boundaries

Crypto currencies are beyond world events

Crypto currencies are safe

Cannot be centralized

Conclusion:

Crypto currency is still a speculative domain. It is highly volatile in nature but also has a promising future. On the other hand, investments in crypto currencies demand lot of patience and don’t put more than 5% of your net worth. If you have patience and nerve, go ahead and invest in digital currency. The promise of a bright future, awaits crypto currencies.

2018-09-26T11:39:21+00:00