Cryptocurrency Gold Of Future Or Digital Bubble

 

Bill gates said that the future of money is a digital currency.it’s widely speculated that crypto will do to banks and even cash what the internet did for information is said to be a revolution altogether everyone these days is talking about cryptocurrency but is it a gamble or is it an investment is it the gold of the future or is it just a digital age bubble.

let’s start with some basics what does crypto even mean to begin with now the word crypto literally means concealed or secret in this context anonymous in principle cryptography guarantees a security of transactions and participants are independent from any central authority and thus protected from double spending and this is the very foundation of cryptocurrency and before you get confused between bitcoin and crypto now bitcoin is simply a name of the best known cryptocurrency like dollar or euro or even rupee is the name of one type of currency so back to crypto though it is decentralized meaning there is no third party controlling it so who does the book keeping then huh well crypto community it is regulated by the own community users and they earn crypto for it any attempts to fool the community get noticed and no single user or government or bank or even credit card company can force the fee on your payment this also means that transactions on crypto are irreversible once you’ve paid it you’ve paid it next would you have you would have probably heard at this point about people putting money into cryptocurrencies and all that means is that they’re exchanging normal currencies like dollars for cryptos like bitcoin they’re hoping that those cryptocurrencies become the next big thing but the one decision that someone would really like to make at this point is which cryptocurrency because enough has been talked about bitcoin but bitcoin remember is just one of the over 4000 different cryptos already out there and each of them have different properties it’s like the stock market for example where every stock is different there is also for example not just bitcoin but ethereum which is the second most invested and in this case the the transactions are said to be much faster than bitcoin as well but there are also problems with the crypto system let’s look at the dark side of it now one of the main reasonpeople don’t take crypto seriously is because of its volatility because these currencies are so new no one really knows what they would be worth so you find that crypto prices are quite heavily speculative they’re tied to the news cycle so when for example elon musk’s tweets about how he’s going to invest ina bitcoin and how he’ll allow people to buy his cards because of bitcoin goes up then when he says that’s not happening anymore it goes down number two is the fact that they are not really accepted as a form of payment in most places a lot of companies have pretty much had a back and forth on this tesla i told you burger king for example also these are companies who said that they will accept bitcoin and then they went back on that number three darkside or why crypto said to be so dangerous well there can be an environmental concern as well now by the code the transactions are verified many many times on several computers these computers and require a lot of power a lot of electricity thus now a lot more people sing it can be environmentally damaging as well and number four because there is no real policing or regulation on crypto right now it’s likely to be the perfect currency for criminals since crypto is anonymous which means your actual details aren’t really visible to anyone it’s just a code and thus by that very nature it’s untraceable but despite all these unregulated dark sides that we’ve discussed to crypto guess how many people across the globe are invested in it globally around 12 to 15 crore people are invested in crypto let’s not get into the money that’s at stake here as well in india what’s the story you ask well the cryptocurrency space in india has been witnessing a revolution for the past couple of years so much so is the excitement around it that indians now seem to be changing preference from gold to crypto according to a statement that came out by analysis they said in india where households owned more than 25 000 tons of gold crypto investment grew from about 923 million dollars in april 2020 to nearly 6.6 billion dollars by just may of 2021. it also said that it represents a nearly 612 percent rise in the number of cryptocurrency users this is a major mindset shift but making many wonders have they already missed the bus and missed the party on crypto and then finally if you do invest.