Understanding the Cryptocurrencies
Introduction
Cryptocurrencies have been around for a while now and have gained immense popularity in recent times. One of the most common questions people ask is 'Why are cryptocurrencies important?' In this article, we will take a look at some of the reasons why cryptocurrencies are so popular among investors and how they can help individuals grow their wealth.
Cryptocurrencies are different from traditional currencies.
Cryptocurrencies are not physical in nature.
Cryptocurrencies are not controlled by a central authority.
Cryptocurrency is not backed by a physical commodity such as gold, silver or real estate.
A cryptocurrency does not have to be issued by a central bank, and it is not regulated by any government or regulatory body.
The financial system is in the midst of a paradigm shift.
The financial system is in the midst of a paradigm shift. The current system is transforming, becoming more efficient and secure, but also growing and changing. In this new world, it will be easier to send money around the world; digital payments apps and cryptocurrencies are making this possible.
Cryptocurrencies are at the forefront of change in the financial system. They are revolutionizing how we think about money, giving us options for new forms of currency that can be used in daily life without relying on government approval or permission from banks and other financial institutions (which can take days). Crypto investors have been able to invest in companies that use blockchain technology—one example being Ethereum—and gain access to these emerging markets before they become mainstream investments.
Cryptocurrency transactions are secure, immutable and do not involve third party intermediaries.
Cryptocurrency transactions are secure, immutable and do not involve third party intermediaries.
They are irreversible, peer-to-peer and anonymous. They are global, cheap and fast. And they are transparent in nature as well because there is no central authority controlling or monitoring the transaction process with cryptocurrencies such as Bitcoin Cash (BCH).
Cryptocurrencies provide individuals with an alternative asset class to invest in.
Cryptocurrencies provide individuals with an alternative asset class to invest in. Cryptocurrencies are not correlated to other asset classes, and can be used as a hedge against inflation, a bear market or recession.
Cryptocurrencies are here to stay.
Cryptocurrencies are here to stay.
They will continue to grow in popularity, adoption, and use as a form of payment and store of value. However, with this growth comes a new set of challenges related to regulation and taxation; these issues must be addressed if we want cryptocurrencies to become mainstream.
Conclusion
We hope this article has answered some of your questions about cryptocurrency and given you a solid understanding of how it works. Here are a few recommendations in case you wish to dig deeper:
Cryptocurrency and Blockchain - A course by Wharton, University of Pennsylvania
Defi: Future of Finance - We like this one better, By Cam Hervey
You may choose just a course, instead of full specialization.
It's exciting to see such a new technology be adopted so quickly by the masses, and we can't wait to see what happens next!