What is the future of cryptocurrency?
January 12, 2018 6:20 am,
What is a cryptocurrency?
A digital currency? The money of the future? A blockchain instrument? A decentralized intermediary? A virtual reality? Yes, it is all.
A cryptocurrency is a digital currency that is created and managed through the use of advanced encryption techniques known as cryptography.
In the whole hype, blockchain is the hero. It is what has made these currencies what they are today.
A blockchain is a global online database that anyone, anywhere, with an internet connection, can use. The cool thing is traditional databases are owned by a central authority like banks, companies, or governments, but blockchain isn’t owned by anyone. It has a peer-to-peer network looking after it, so cheating the system is nearly impossible.
The standard cryptocurrency as highlighted in popularity is the Bitcoin. It is the most traded and the most known of all the alternative coins in the picture.
Bitcoin is a decentralized currency that uses peer-to-peer technology, which enables all functions such as currency issuance, transaction processing, and verification to be carried out collectively by the network. People send Bitcoin freely to each other, and blockchain comes in to verify that only one person claims to own each coin at one time.
While Bitcoin experienced a sudden surge in price towards the end of 2017, reaching a record high of $19,783, it ended the year down all the way to $13,889. In the early days of 2018, alternatives like Ethereum and Ripple seem to be having their own moment instead, with the latter increasing in value tenfold over the past month.
Despite its recent issues, Bitcoin’s success and growing visibility since its launch has resulted in a number of companies unveiling alternative cryptocurrencies, such as:
A cryptocurrency that aspires to become part of the mainstream financial system may have to satisfy quite divergent entry norms and criteria. It would need to be mathematically complex (to avoid fraud and hacker attacks) but easy for consumers to understand; decentralized but with adequate consumer safeguards and protection; and preserve user anonymity without being a conduit for tax evasion, money laundering, and other such activities.
Since these are formidable criteria to satisfy, is it possible that the most popular cryptocurrency in a few years’ time could have attributes that fall in between heavily-regulated fiat currencies and today’s cryptocurrencies? While that possibility looks remote, there is little doubt that as the leading cryptocurrency at present, Bitcoin’s success (or lack thereof) in dealing with the challenges it faces may determine the fortunes of other cryptocurrencies in the years ahead.
Here’s all you need to know about the virtual currency: https://futurism.com/cryptocurrency-future-money-bitcoin/
So, will these alternative currencies eventually supplant conventional currencies and become as ubiquitous as dollars and euros someday? Or are cryptocurrencies a passing fad that will flame out before long?