For most of history, humans used to
commodity currency. Fiat currency is a more recent development and popular
stuff. At the present time, it is the dominant form of money It’s just worth it because we all agree with it.
If everyone does not believe that money is tied up, no one will accept it.
would be worthless. Even though the most people use fiat money, nowadays
technology is developing dramatically.
Many people have physical wallet for money. That means we constantly use
money to purchase or pay something. Although the most people are using cash in their
life. By the way we can create our electronic wallet. It means about digital
money that named cryptocurrency. In the other words, cryptocurrency
possible to alter the value of code and value of money. In the simplest form, cryptocurrency is
numeric currency. Basically, cryptocurrencies are symbols
of decentralized consensus-databases. Because
procedures for consensus retrieval under acceptable cryptography are confirmed.
Cryptocurrencies are based on cryptography. They are not secured by people or by hope and trust,
but backed by mathematics.
first cryptocurrency was bitcoin which invented by Satoshi Nakamoto,2009. Bitcoin is a new network
consisting of a payment system that uses uniquely digital money. Bitcoin refers to a network that is decentralized and
directly identical. That means there is no rule without the cooperation of each
user who makes use of the worth bitcoins, the currency. A bitcoin is basically
cash for the internet. However, as more currency becomes more popular,
more physical locations are starting to accept Bitcoins as payment. First
we should to know how it works. Bitcoin
changes money works. It was created to provide an alternative to banking
system. Bitcoin is based on peer-to-peer system. So there is no central
authority. Instead bitcoins are issued to users who help process transactions
in the network. Those about block chain, transaction and mining. The block chain is shared by
public ledger on which the whole bitcoin network confidence. Bitcoin miners are
specialized computers that do the required to verify and record transactions in
the blockchain. It means all accepted transactions are included
in the block chain.
means people are capable of sending bitcoins or digital money to each other
using their smart phones or their laptops without third parties and banks. It’s
alike to sending cash digitally. Then mining means people strive against to
‘mine’ bitcoins using computers to solve complex mathematics problems. It shows
how bitcoins are created. As a reward
for their work, the miners earn bitcoins, and this is how new bitcoins
are released into circulation. So as for
bitcoin, one us dollar equals 0.00010 bitcoin. By the way, the system is
programmed so that only 21 million bitcoins will ever exist. It shows a
predictable supply that’s governed by scarcity.
However, everything has advantage and disadvantage sides. As
for cryptocurrency’s advantage is sometimes possible to increase your money by
bitcoin. It means you can get profit while you’re using bitcoins. And it is
easier to use than fiat money or cash. Moreover, people don’t need central bank
or third parties when they use bitcoin. With bitcoin, you can send any amount
of money to anyone to anywhere in the world as easily as sending an e-mail.
As for disadvantage, There is a high chance of loss from
bitcoin’s going up and decreasing value. That’s why wrote that, I watched movie
about bitcoin recently. In that film, bitcoin’s value was inconsistent in 2013.
By the way, Bitcoin’s users are increasing day by day.
Even though many people heard about cryptocurrency, they are
afraid of joining cryptocurrency’s user. That’s why they don’t have enough
knowledge about it. Also they are scared of losing their money or risk and
might make a mistake.
Also some people don’t agree with cryptocurrency will be
future currency. Because they think cryptocurrency will not able to survive or
thrive without becoming legitimate.
By the way, so many people using bitcoin in so many different
ways. It expresses cryptocurrency is expanding in the world.
Conclusion, We will have been using money, whether
cryptocurrency will be future money or not. No one knows digital currency how
will change our life in the future.