Hello Everyone!

I Saakshi, gladden to write my first blog on the major aspect of every individual’s life that is “money”. Money has become an integral part of us as it is important to survive in this contemporary world.

Let’s start by knowing exactly that what is the meaning of money? Traditionally, money is defined as the medium of exchange usually in the form of coins and banknotes. But, in the modern world the form of money has changed a lot. Currently, there are four types of money as follows: –

1.      Metallic Money: –

Includes coins from different countries such as cents, dollars etcetera.

2.      Paper Money: –

Consists of paper notes which are US & Canadian Dollars ($), Pounds (£), Euros (€) and so on.

3.      Credit or Bank Money: –

Bank or credit money is provided to its customer by the means of bank. This money is transferred through cheques or can be exchanged by debit and credit cards for making payments without any cash involved.

4.      Digital Money/Currency: –

It is defined as a digital coin that you can send through the Internet to any person around the world.  A cryptocurrency, broadly defined, is virtual or digital money which takes the form of tokens or “coins.” While some cryptocurrencies have ventured into the physical world with credit cards or other projects, the large majority remain entirely intangible. (Theresa, 1999)

What is Digital Currency?

Another name of digital currency is Crypto currency. The term “cryptocurrency” is made up of two words crypto and currency, the word “crypto” is taken from the term cryptography which means to transfer one’s data from one place to another securely.

For example, if you want to send an important document to your friend without revealing its content to others, you put a password on it to make it only accessible by that person whom you want to send that information called as Encryption. By this way, the data can only be seen by that party who knows the passcode of that file, everyone can’t be able to open the file without a passkey, known as Decryption.

The “currency” means the system of money which is generally used at different geographical areas around the world. For instance, In Canada, Canadian dollars are used for exchanging goods as well as services rather than US dollar.

In this way, cryptocurrency represents the private money to be transferred from any person to anywhere in the world.

What is the purpose of Cryptocurrency?

1. To create such a system for the people to whom it is easy to use and proves very helpful.
2. To make the same currency available throughout the world.
3. To establish the common platform for exchange all over the globe.
4. To make it easily transferrable.
5. To formulate the almost constant value of the money.

Advantages/Benefits of Cryptocurrency: –

1. The main benefit of this currency is that it is extremely secured as compared to other financial platforms including banks as the concept of cryptography is involved.
2. If you have coins in cryptocurrency that you stored before, you can use it wherever you want to.
3. In this method, no one has the authority to block your account.
4. It is faster to confirm your transaction to transfer your money from one place to another.
5. There are some deals offered by the shop owners to shop and earn more bitcoins simultaneously.
6. It is very difficult for the hackers to do cyber attack because of the blockchain which has no central authority as your account is fully controlled by you.
7. It is a more democratic financial system as no governmental authorities are involved.
8. Helps in creating a global market and universal acceptance.

Disadvantages/Drawbacks: –

1. Bitcoin serves no practical purpose in the marketplace as it is worth anything at all as gold has enjoyed high value since the beginning of the history and government issued money gets backing from that government. (Betsy, 2018)
2. The second reason for the downside of cryptocurrency is TRUST. As many people do not trust the underlying code behind blockchain. (Betsy, 2018)
3. Other scams are also common in the space. So called crypto experts frequently take advantage of the lack of regulation to buy a lot of cheap token then the hype up in the media. (Betsy, 2018)
4. Fluctuations made it challenging for businesses to accept crypto as the payment of goods and services, as the effective price can vary dramatically by the hour. (Betsy, 2018)

Some Cryptocurrency Earning Applications:

1. Bitcoin

https://bitcoin.org/bin/bitcoin-core-0.19.0.1/bitcoin-0.19.0.1-win64-setup.exe

• Coinbase https://www.coinbase.com
• Block folio https://blockfolio.com

Conclusion: –

In conclusion, the concept of cryptocurrency has future scope but also there are few drawbacks which requires to be overcome by experts. So, it is fully up to the user’s mind how to utilize it effectively as well as efficiently.

References

Betsy, P. (2018, February 21). Bitcoin Exchange Guide. Retrieved February 9, 2020

Theresa, C. (1999, June 6). Investopedia. Retrieved February 9, 2020