Cryptocurrency, The New Money?

Cryptocurrency, The New Money?

Brief Understanding Of Cryptocurrency

Cryptocurrencies work using a technology called block-chain. Block-chain is a decentralized technology, which spread across many computers that manages and records transactions.

A cryptocurrency is a digital asset designed to work as a means of exchange. Individual coin ownership records are stored in a ledger. The ledger exists in a form of computerized database using cryptography to secure transaction records and also to verify the transfer of coin ownership. Cryptocurrencies are only digital and cannot be physical like the paper money or gold. However, they can be used to buy goods and services.

Why Does Cryptocurrency Get Attention?

There is this innovative and exciting thing about cryptocurrency. It creates opportunities for people from every walk of life to acquire wealth. Simply put, cryptocurrencies use decentralized control. Cryptocurrencies continue to proliferate and raise money through initial coin offerings.

Cryptocurrency users are well on the way to a future where they take control of their finances. It’s no news however, that top financial institutions are betting big on cryptocurrency. Because, there is a rise in interest across some of the top clients. Clients are exploring how they can participate in this space.

How To Purchase Cryptocurrency

To buy cryptocurrencies, you’ll need a “wallet”. These come in form of an online app that can hold your currency. Generally, you create an account on an exchange, and then you can transfer real money to buy cryptocurrencies such as bitcoin or ethereum. In Nigeria, the Luno platform is preferential. It serves the opportunity to buy, sell and also use your currency as a means of exchange.

Is Cryptocurrency The New Money Or An Investment ?

Personally, I don’t see them as an asset; not a good one anyway. Cryptocurrencies do not serve as passive income or generate cash flow. Cryptocurrencies may go up in value, and for this they may generate profit in the future. Top investors like Grant Cardone see them as mere speculations, not real investments.

To summarize this, cryptocurrencies have been anything but stable through much of their history. A currency needs stability so that merchants and consumers can determine what a fair price is for goods. Also, people are less likely to circulate them and spend them. Why spend it when it can be worth more in 10 years? Cryptocurrencies are more of a way of transmitting money, and may never be equal the actual whole lot of money.