An Insight to Cryptocurrencies and Traditional Currencies

2 years ago

Cryptocurrencies are becoming very famous in this digital age and there are many reasons why. When we talk about the year 2018, we found about 1,600+ cryptocurrencies. Where this figure kept growing, more and more people came to know about this industry and were highly interested in where the market is going and where it would stand in the coming 5-10 years. It’s good to ponder over the market dynamics of an industry you are interested in because it helps you learn about the different market trends, investors’ behavior, and if you want to step into the same market, then what your next step should be.

The developers who created the blockchain technology that supports cryptocurrencies like bitcoins were also in great demand in the industry. These developers earn high salaries which clearly depict their value and how much work they need to do to leave a footprint behind so others can also contact them for potential opportunities.

Where you can accelerate your career being a developer of blockchain technology or use bitlq website for your convenience to trade cryptos like bitcoins, you can choose any path after doing comprehensive research of your own. You should know the rights and wrongs, the dos and don’ts, so you or your investments don’t get ruined later on.

A Little Background About Cryptos

During the caveman age, the barter system was highly used by people. The barter system involves the exchange of goods or products and services among people. Here is an example: A person might give two bananas to the other person and get two or three apples.

Since everything has good and bad sides, the barter system also had some shortcomings. There was no proper measure by which people could value the items they were exchanging, you just had to decide the quantity or quality of your items that you could exchange and get another item you wanted in return. Where every item can’t be divided into units, you need to be careful about what you propose to someone else. Moreover, since people mostly exchanged goods, they could not be transported conveniently.

Now, since we have modern currencies that easily fit in our pocket, wallet, or can be stored in mobile phones, we are all set.

When people realized that the barter system is not working out great, the currency came across many changes. Official currencies were introduced, gold-plated florins, and then the paper currency was popular among people across the globe. So, that’s how we got to the modern currencies and are using them now.

To make it clearer, modern currency involves coins, digital wallets, paper currency, and coins. Digital wallets like Paytm, Apple Pay, and PayPal make it easier to exchange money over a secure transaction system since these payment modes are governed by governments and banks. This is great because it means that there is a regulatory authority who is in charge of supervision and makes sure that every transaction is made smoothly. However, these authorities are also in charge of how credit cards or paper currencies should or could work.

How Do Traditional Currencies And Cryptos Differ?

We know how cryptocurrencies work but imagine that you have to pay your friend back who paid for your ride the other day and now you want to transfer him that amount using your online bank account. While you may think that this is not a difficult procedure and can happen in mutes, there are still many things that could not be right here. What if the bank (or financial institution) that you want to transfer the money through does not work properly, and has technical issues at that moment? When their system is down or their machines don’t work properly, you can’t transfer your payment to the other party. There’s another possibility that your friend’s account or your account is hacked.

Since banks are a common failure here, cryptocurrencies step in and make sure that you have something more modern and reliable that you can use. The future of cryptocurrency is clear this way. You can do various identity checks, keep your data secure, and navigate the world of cryptocurrencies on your own.

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