The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Thomas John, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
The cryptocurrencies are universal digital currencies, that are used primarily outside existing banking and governmental establishments and are exchanged over the web. It’s a medium ussed to exchange product or services just like the other currencies, it solely happens to be in digital format. In alternative words, they do not have production cost tied to them.
As we tend to pay a lot online, it’s a natural consequence to transmit all aspects of our life, including economical, online. It’s easier, however the method of integration costs a lot. These days the expenses on bank transactions and revaluation are a growing expense.
The digital currencies circumvent the middle man – the banking industry. This ensures cryptocurrencies are freed from taxes and charges. The process creating and trading with cryptocurrencies is clear and straightforward to follow. The worth of a digital currency is usually determined by supply and demand as traders purchase and sell the currency on the general public exchanges. All of the miners are on the net, the system is made so that it doesn’t permit inflation.
Society has progressed enough to own its own instruments of social and economical interaction. The web is one such tool. The big potential of the internet is however to reveal its true potential. we are still to accept the concept of virtual connectivity. The mercantilism with digital cash continues to be free and no massive monopolies have entered “the game” yet.
The first cryptocurrency was Bitcoin and it appeared in 2009, less than six years ago. It had been created by an anonymous person called Satoshi Nakamoto and continues to be the most popular cryptocurrency. It is also the premise for each alternative crypto-coin that has popped up since. It’s solely a matter of time for digital currencies to be welcomed as medium of exchange by governments, banks and firms. This will lead us to a revolutionary change in the banking and finance industry. Its universal nature, clear purpose and clear genesis makes it popular among traders and trustworthy among customers.
It is a revolutionary change that cryptocurrencies aren’t controlled by any authority. It is us, who rule the trading and also the market. In contrast to banks and online services, such currencies are localised, with no single body overseeing and verifying transactions. it’s a product of “peer to peer” relation; it’s the child of the direct economy. Cryptocurrency and its processes of moving cash is quicker, a lot more economical, more cost-effective and safer than any other means.
Internet is the tool and we have got to educate ourselves. We’ve got to involve and embrace the new.