Cryptocurrency is a digital currency exchanged for other digital currencies such as dollars or euros. It has been around for a while, increasing its usage every year. Cryptocurrency has become an important funding source for startups and individuals in the digital age. The value of a cryptocurrency has fluctuated over the last few years, but it is seeing healthy growth this year. Here’s what you need to know about cryptocurrency and its growth.
Cryptocurrency started with Bitcoin way back in 2009 when Satoshi Nakamoto created it as “a peer-to-peer electronic cash system” that would enable users to make payments on the Internet without any financial institution intermediaries getting involved (although there are still plenty of intermediaries such as banks and PayPal). In the past five years, however, cryptocurrency has become the subject of high-level interest. One reason is that investors are keen to understand how it works and where the money will come from to fund its growth. Another reason is that many believe that cryptocurrencies will replace older forms of money because they believe they can be used more conveniently than traditional currency. Cryptocurrencies are also attractive to investors since they have far lower price volatility than stocks or bonds.
One of the main drivers behind the hype is bitcoin, which has grown from $1 billion to a market capitalization of $160 billion in the past year. Other cryptocurrencies have caught on, with names like Ripple and Ethereum increasing dramatically in value. One interesting thing about cryptocurrency is that it is regulated by its blockchain system, which means any government or central bank does not restrict it. As a result, cryptocurrencies are gaining in popularity around the world.
The growth of CRYPTO ECONOMY has been suitable for the industry and investors. Granted, there have been a few misses along the way—for example, it was rumored but never confirmed that the U.S. Secret Service had seized 25,000 bitcoin from Silk Road—but overall, it has shown that cryptocurrency can work as a medium of exchange in different parts of the world and that it can be used to lower transaction costs across borders.
One interesting thing about cryptocurrency is that it is regulated by its blockchain system, which means any government or central bank does not restrict it.
In conclusion, governments worldwide are starting to realize the potential of cryptocurrencies to be used as a means of payment for consumers and institutions, both national and international. As a result, it is expected that more legislation will be passed in this area in 2018.