The digital currency that makes use of advanced weencryption techniques called cryptography is called cryptocurrency. It became a reality through the creation of bitcoin in 2009. With a market value of over 2 billion dollars, there is an ongoing raging debate about the future of cryptocurrencies and if they are a safe investment. Many believe cryptocurrency is the future while others feel that they would soon lose their charm.
The future of cryptocurrency
Economic analysts predict that some major changes are coming in the institution money entering the market. All the crypto money is also expected to get into Nasdaq. All this would add more credibility to the use of the blockchain. It is possible that in the future, they might become an alternative to the usual currencies. Some economists predict that the addition of the verified exchange-traded fund would help it easier for people to invest in bitcoin.
What is bitcoin?
It is a decentralized currency that enables activities like the processing of the transactions, issuing the currency and all the verifications to be carried it. The decentralization factor makes the bitcoin tamper-proof. The bitcoins are created through mining. Currently, 25 bitcoins are created at the rate of 10 minutes.
While some economists are of the opinion that the future of bitcoin looks promising and that the use of cryptocurrency is all set to boom in the new few years. The history of cryptocurrency has been volatile. But some argue that the use of bitcoin would be limited to transactions, making the cryptocurrency more vulnerable to collapse.
The fear about bitcoin is for its use in illegal activities like drug peddling, smuggling, money laundering and weapons procurement. In the past, it has attracted the attention of the regulatory committees around the world and is working towards policies to make cryptocurrency more regulated.
Types of cryptocurrencies
There are many options like Litecoin, Mintchip and Ripple. Litecoin is the rival of bitcoin. It is known as the silver to the gold of the bitcoin. There are some limitations to the use of cryptocurrencies that might not make them the ideal option in the future. All the cash may be ransacked by malware. While many governments are welcoming of this new piece of technology, many regulations are underway to regulate and scrutinize its usage better. Many merchants are accepting bitcoin as a mode of payment. To become a part of the mainstream financial system, many new processes have to be put into place, so that it does not become a backroad for tax evasion.