As we all know, we started trading using barter system, where we exchange commodities such as chickens and goats that were seen as money. Nearly 5000 years ago, during the early urbanization, paper and coin were given a value, and declared as money.
After 25 years of physical handling of money, virtual trade was invented to enable people to buy and sell via the world wide web, when cards were vastly used for transactions. This happened as people find typical money transaction burdensome and less safe.
Now, the advancement has reached a level where a new form of money is created and it is all virtual but has a high value – cryptocurrency. Cryptocurrency is basically digital currency, which is an internet-based medium of exchange that uses cryptography to secure the transactions.
Although the first thing that comes to our mind is bitcoin when someone says cryptocurrency, there are close to 1, 000 different types of cryptocurrencies available. Bitcoin is the cryptocurrency invented and it still tops the list among the others, like Ethereum, Litecoin, Tether and so on.
So, what can we do with cryptocurrency? Although it is called as digital currency, it actually has better properties compared to typical currency. Below are the few uses of cryptocurrency which is seen to have potential increase in value.
Among the similar usage between a fiat and cryptocurrency is buying goods. Nowadays, there are a lot of merchants, both online and offline, accept cryptocurrency as a mode of payment. Therefore, it can be used to pay for hotels, flights, restaurants, jewellery, apps, computer parts and even college fees.
A great benefit of using the digital currency is that we can send and receive online money transfer, especially a cross-border transaction at a low cost yet high speed. Among the cryptocurrencies that are associated with low fees are bitcoin cash (BCH), Litecoin (LTC) and stellar (XLM).
Anybody who does investment will surely be interested in cryptocurrency as it allows them to provide seed capital to innovative early-stage tech startups. As much as initial public offering (IPO) is important to investors, initial coin offering (ICO) is formed to raise capital by selling a newly-created digital token to early backers of the project in exchange for established cryptocurrencies such as bitcoin (BTC) or ether (ETH). How it differs from normal investment is that, anyone can invest, not only experienced venture capitalists like the typical currency users.
Digital currency also allows us to make private transactions whereby cryptocurrencies like PIVX, Zcash (ZEC), and Monero (XMR) allows us to make anonymous transactions. This literally means that anybody can make financial transfers and they don’t have to explain the need of transaction to any bank when the amount is large. As we know, this explanation of source, recipient detail and so on unnecessarily delay the process.
It is very common to hear bank accounts being frozen especially for business people and makes them have zero access to their own money. When it comes to cryptocurrency, no personal wallet can ever be frozen by any authorities, especially bitcoin that acts as a censorship-resistant alternative store of wealth.
As much as we love posting on social media, the most we could achieve or earn are likes and comments, and at times hates too. But the best part of Steemit, the world’s first incentivized online platform is that anyone who publishes high-quality contents receive cryptocurrency as a reward for contributing, unlike some social media platform that sells user’s data to third-party.
Since everything has been made easily assessible through the presence of internet, we don’t carry external hard disks as much as we did before. Cloud storage has been the current go-to space to basically safe-keep all that we want. Renting cloud storage is also not stranger for those who own spare hard drive space. The advantage of renting out decentralized blockchain-based cloud storage like Storj actually earns an individual cryptocurrency in exchange for it. The website claims that “Storj can be faster, cheaper, and more secure than traditional cloud storage platforms. Faster because multiple machines are serving you your file simultaneously, cheaper because you are renting people’s spare hard-drive space instead of paying for a purpose-built data center, and more secure because your file is both encrypted and shredded. There is no need to trust a corporation, vulnerable servers, or employees with your files. Storj completely removes trust from the equation.”
In a nutshell, cryptocurrencies are basically invented based on traditional currencies, therefore both currencies do have similar characteristics, as both are acceptable and divisible. Nevertheless, cryptocurrencies are modelled to not only serve the purpose as money but definitely do more.
What's Your Reaction?
Known as Loki (the good one though), is someone who loves the rain & coffee combo and reaches out for movie at her leisure. She is the one you heard on radio for one of her articles.