You might get to hear the terms Bitcoin, Ethereum, or Z- cash – popping up during group meets or even during casual conversations. Yet, few are aware of the exact significance and implications of cryptocurrency, a concept that has sought to revolutionise the global economy. The ideology of virtual currency seems like a radical change in the market with their value evolving rapidly. So, what is the hullabaloo all about? Let us find out.
Bitcoin for all reasons
Bitcoin is a concept that emerged as a digital currency to serve as the medium of exchange based on blockchain technology. It grabbed the world’s attention back in 2009, providing decentralised peer-to-peer transactions across the globe.
But as of today, it is more like an asset investment rather than a mere currency in use. It is more associated with trade, even bets and gambles. According to Coindesk, the price of Bitcoin is $54,869.64, whose value has been on the rise for the past few months. This has led the common man to harbour the notion that investing in Bitcoins is like purchasing land or any property whose value is expected to bloom as years pass.
Altcoins on the Rise
By 2011, Altcoins emerged which was an alternative to Bitcoins. They mimicked the working of Bitcoin to some extent, but not exactly the same. They are built on the success of Bitcoin with a thin line of difference in the rules, applying to specific users. Altcoins like Cardano have had a sixfold surge since the middle of December 2020 that briefly made it the third-biggest cryptocurrency by market value after Bitcoin and Ethereum.
Altcoin vs Bitcoin
Today, Altcoins happen to hold an upper hand over Bitcoins as the transactions can be done both manually or automatically. It takes about 10 minutes for Bitcoins to add a block to its blockchain, to process the transactions while in case of Altcoins, it is a matter of a few seconds to minutes.
As per Statista, the Bitcoins in circulation worldwide from October 2009 to February 2021 is approximately 18.63 million. Since, all other cryptocurrencies expect Bitcoins, accounts to Altcoin including Ethereum, Ripple, Tether, Bitcoin Cash, Bitcoin SV, Litecoin, etc., their circulation altogether is way too higher in comparison in the market.
Considering the benefits the Altcoin possesses over Bitcoin, the market value will stream high, eventually increasing the prices. As of now, there is an ‘n’ number of Altcoins that are comparatively cheaper indicating a better cryptocurrency to invest upon. But it isn’t completely safe to invest in these little-known coins at the moment, which have no technology backing and one might end up losing money.
What holds in the future of cryptocurrency?
In recent times, the market value of one of the cryptocurrencies, Bitcoins is on the rise but when looked back, the graph hasn’t been stable. Countries like India and China aren’t happy with the functioning of cryptocurrency and popularly refer to it as digital assets. Besides the greater security deals offered by cryptocurrency when compared to online payments, stability is the bigger question when thought of long-term investment. This might be a matter of concern as it is picking the pace gradually. And investing on a few cryptocurrencies will be of no greater use or harm if regulated legally and with an authentic dealer.
While looking upon technological development in every field, change is mandatory to seek better solutions to modern-day problems. And, every new invention or improvisation will be both boon and bane when considered from individual levels of usage. Digital currency is one such revolutionised idea that portrays high levels of benefits with little understanding to offer. There is a conflict between the regulation and anonymity of cryptocurrency among various companies across the globe as it will continue to have a volatile nature. The virtual currency should be assessed as a new global currency rather than a fantasy asset purchase.