Nowadays, cryptocurrency is no longer a stranger to the whole world. It becomes so familiar to all of us just because of its nature. But do you really know about cryptocurrency? If you know about cryptocurrency then do you have the right knowledge about cryptocurrency? Hello everyone. QuitOffer offers you a warm welcome. Today we are going to discuss ‘Cryptocurrency’. In this blog, you will be aware of all the aspects of cryptocurrency with its pros and cons and its different types. So let’s start this blog ‘What is cryptocurrency and its pros and cons’.
Table of contents
- What is cryptocurrency?
- Benefits of cryptocurrency.
- Drawbacks of cryptocurrency.
- Types of cryptocurrency.
- The last section.
As it is a virtual currency that is being used by most of the people for the commercial transaction.
What is cryptocurrency?
Cryptocurrency is a virtual or digital currency which is used for commercial transaction over the internet. This means it cannot be touched because of its e-format nature that is, in digital form. There is no centralized authority that works over the transaction. It is a decentralized currency. Cryptocurrency eliminates the role of the third party in the commercial transaction.
Cryptocurrency is the peer-to-peer electronic system for the digital commercial transaction. It is a kind of currency that is used to sell and purchase goods and services over the internet without involving any third party.
Benefits of cryptocurrency.
There are various benefits of cryptography, these are:-
1. It makes easy international trade.
Problems like the exchange rate’s fluctuation and different kinds of levies and taxes make the traditional transaction more complex.
As cryptocurrency is a peer-to-peer electronic system for the digital commercial transaction. It eliminates all the problems from international transaction including levies and exchange rates.
2. Secure the transaction.
There is no chance of fraudulent transactions as it is based on the distributed database or distributed ledger.
Cryptocurrency is based on blockchain technology.
Every blockchain miner witnesses all the transactions happening through the blockchain which enhances the security of the transaction.
If someone wants to do any kind of fraud with the transaction then s/he needs to make changes in every node of the blockchain and that is not possible at all.
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3. It reduces transactional fees.
There is no third party in the cryptocurrency transaction. It is the peer-to-peer mechanism through blockchain technology.
In a traditional transaction, there are a lot of taxes imposed by the bank which takes significant amount of your assets. The third-party demands commission whenever you do any transaction. The bank imposes several taxes on your money.
Cryptocurrency doesn’t impose any kind of transactional fees. It just takes a small amount for the blockchain miner.
4. Cryptocurrency reduces transaction time.
Transaction across the globe takes two to three days. And which is a big problem on its own. No business would want the money sent by him to his client reached in two to three days.
Cryptocurrency solves this problem by sending money in the blink of an eye.
5. Substantial proofs.
Owing to the large numbers of blockchain miners. The transactional parties have substantial proof of the transaction. There is no chance of fraud.
Drawbacks of cryptocurrency.
1. De-centralized nature.
Cryptocurrency is not controlled by any financial institution. There is no control over the transaction. That is no support its user regarding to its transaction from cryptocurrency.
If its users lost the password or any other authenticating element then there is no way to re-back the control over the account.
2. Lack of privacy.
Due to the availability of the blockchain miners in the transaction. The confidential information of transactional parties becomes public which may cause harm to their privacy.
3. Rules and regulations.
There is no control over the cryptocurrency except the blockchain miners. There is no protocol over the transaction.
Its value depends on its demand and supply. One may face any difficulty to a large extent.
Cryptocurrency is a volatile currency that is, its value depends on the demand and supply. Like stock market price fluctuation is associated with it.
Uncertainty is another name of cryptocurrency. No one can predict the value of cryptocurrency.
5. It works in virtual world.
Cryptocurrency is based on software. The software can be hacked by hackers. In that case, the data can be manipulated.
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However, the blockchain technology on which it works makes it more powerful and strong but still, its vulnerability cannot be ignored.
4. Types of cryptocurrency
- Ripple (XRP).
- Bitcoin (BTC).
- Zcash (ZEC).
- Litecoin (LTC).
- Bitcoin Cash.
- Ethereum Classic.
- Ethereum (ETH).
- Stellar Lumen (XLM).
- Cardano (ADA).
5. The last section.
Besides having a lot of benefits, it cannot be said that cryptocurrency is trustworthy due to its decentralized nature. But yes, this may be a better way of a transaction with its improvement.
Cryptocurrency can also prove to be a game-changer. Cryptocurrency can change the hard-earned cash of humans from the third party.
So, that’s all about the cryptocurrency. Quitoffer is expecting that you get all about cryptocurrency. Let us know what you feel about this information in the comment section.