All You Need to Know about Cryptocurrencies
The economy of the current world has turned into a digital economy. The existence of Bitcoin, cryptocurrencies and the Blockchain technology are the manifestations of this change. However, given the fame that cryptocurrencies have gained, still come topics about them are vague. Perhaps you too have heard a lot about Blockchain and Bitcoin but do not exactly know what these terms mean or perhaps you would like to find out more about the mechanism and function of cryptocurrencies. In the following, we will discuss more about cryptocurrencies. Stay with us:
What Is Cryptocurrency?
Cryptocurrency is a digital currency that is not produced in the physical form and is not observed by any organization or private government. In order to trade using them, like the well-known and official currencies in the world, there is no need for a middleman. In order to trade with common currencies, there is a need for financial and payment institutes or banks, but cryptocurrencies do not require middlemen and are used in a decentralized system. Trades with cryptocurrencies are done on an infrastructure called Blockchain. Blockchain can manage the trades and communications between two parties without the need for any middleman and any move by any party will be recorded exactly and can be traced.
Why Are People Drawn to Cryptocurrencies?
One of the main reasons people are drawn to being in the crypto world is its decentralized nature and completely free communication stream. Government intervention and other big and small policies in financial affairs have no place in the crypto world, and this can be a good reason why people are drawn to this market. Among the other reasons for the popularity of cryptocurrencies is the unlimited amount of transaction. No middleman observes or limits the transactions. This makes cryptocurrencies and Blockchain a proper infrastructure for businessmen who are interested in operating on an international level. Countries that are met with global economic sanctions can engage in cross-border trades via cryptocurrencies and Blockchain technology.
What Is Blockchain Exactly?
The simplest way to describe the concept and function of Blockchain is using the father of all cryptocurrencies, Bitcoin. In 2008, Bitcoin was introduced to the world by an inventor or a group of inventors who called themselves Satoshi Nakamoto. All Bitcoin trades are done in Blockchain and in fact, Blockchain is a vast system like a large ledger, and all accounts and transactions are recorded in it forever. In fact, eliminating its content is impossible.
Is Bitcoin the Only Cryptocurrency in the World?
Perhaps Bitcoin is more famous than other cryptocurrencies, but it is not the only cryptocurrency in the crypto world. Cryptocurrencies have different natures. For example, some of them can be used like cash and so can they to buy and sell goods and services. However, some cryptocurrencies are like valuable items such as gold and can be used as assets or supply to produce other things. Counos Gold is one of the first cryptocurrencies based on precious metals that can be stored like a valuable asset. Other examples of the members and services of the crypto world are as follows:
• Ripple; a network that allows for financial transactions and different trades on the international level in a few seconds.
• Ether; an infrastructure that allows smartphone applications to conduct activities such as voting online.
• Vechain; an infrastructure that allows retailers to follow up on their goods and services in the supply chain.
• Counos U; a cryptocurrency with the fixed price of 100 U.S. dollars that can be used for international financial trades.
How Can You Buy Cryptocurrency?
Wallets are among the first things in the crypto world that need to be bought in order to start the activity. Cryptocurrencies are stored and kept in electronic wallets. Wallets are software that are used for sending and receiving cryptocurrencies in trades. Wallets are installed on smartphones or computers in the form of applications. When you get an electronic wallet for yourself, you will be able to buy cryptocurrencies as well. Now you can get cryptocurrencies from special ATMs or distribution centers.
What Can Be Bought with Cryptocurrencies?
Of course, the wide space of cryptocurrencies leads to crimes to take place as well. For example, buying drugs is one of the dark aspects that the crypto world makes possible. But not only criminal activities are done with cryptocurrencies. Many retailers in different places of the world accept cryptocurrencies for their goods and services. Even famous chain stores such as Starbucks would very much like to use cryptocurrencies as their means of payment. In a country such as Canada, using cryptocurrencies is common to shop from businesses. In fact in this country and some other countries of the world, cryptocurrencies are not banned by law, and it is possible to buy and sell them.
Will Cryptocurrencies Be Taxed?
In some countries such as Canada, cryptocurrencies are taxed. In fact, cryptocurrencies are treated as goods. Different countries that are willing to use cryptocurrencies lawfully are looking to regulate the crypto market. The price and value of cryptocurrencies are also very turbulent. This market has a long way to go till maturation. The existence of turbulence in such a market is currently natural. Because public awareness and acceptance of this new market still needs to grow.
Remember that the crypto world is still in its infancy and in order for its function and applications to be easily recognizable, it needs more time. These new currencies in their short period of existing in the world of the economy have made a lot of noise, and you will probably hear more about them in the future. The evolution process and life cycle of cryptocurrencies are not yet quite clear and predictable, and we should still wait.