How cryptocurrency will change the world

Cryptocurrency is the new buzz among developed and developing countries. Most of the investors are now taking a keen interest in new forms of investment assets. One of these forms is a cryptocurrency and the most common of them -- Bitcoin.

What is cryptocurrency?

A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions and verify the transfer of assets. Cryptocurrency uses decentralized control as opposed to centralized digital currencies and a central banking system.

Strong cryptography is the art of writing and solving codes i.e. securing communications in presence of a third party.

Verifying the transfer of asset through the help of miners (miners are the users of crypto currency who solves algorithm puzzles and get the rewards as bitcoins).

Decentralized control there is no authority or government controlling it. And due to this, its value is the same all over the world wherever you may use it.

Cryptocurrency is using peer to peer network which allows the transaction to be private between the parties involved only.

A ------------- Block ------------------------ Miners ------------------- B

BENEFITS OF CRYPTOCURRENCIES

• Secure transactions due to encryptions and decryptions
• You can use your cryptocurrencies all over in the world anywhere because their value is the same
• Verified transactions
• Low cost of transaction as there are no mediators
• It cannot be hacked or modified by a third party

History

In the ‘90s there were so many attempts made to create digital currency like FLOORZ, BEEZ AND DGICASH. But they were failed due to their shortcomings like frauds done by companies. Friction between companies, employees and bosses.

THEN IN 2009, a group of programmers named under alias SATOSHI NAKAMOTO introduced the first cryptocurrency BITCOINS.

BITCOINS - Bitcoin is a cryptocurrency, a form of electronic cash. It is a decentralized digital currency without a central bank or single administrator that can be sent from user to user on the peer-to-peer. Bitcoin network without the need for intermediaries.

Bitcoins are similar to the virtual ‘cash’ stored in online wallets — Ola Money, Paytm, Free charge etc. You use it for buying products or services through the internet.

There are two keywords in order to understand how cryptocurrencies function — blocks and mining.

Mining

In general, miners are people who secure and control the network by verifying transactions. In reward they ‘mine’ bitcoins. MINERs will verify that whether the party who wants to do the transaction have enough money in their wallets to go through or not. In order to do that they need to solve the algorithm codes and verify the transaction.

Blocks

Blockchain is like a ledger containing a list of records called blocks using cryptography. Each transaction has a unique signature and each block has a cryptographic hash because of which it is impossible to hack the system. As the hacker needs to modify each transaction and then each block which cannot be done, as it seems to be. As the number of blocks in a blockchain increases, the difficulty of the mathematical problem also enhances.

WHAT CAN YOU DO WITH CRYPTOCURRENCY?

Before it is difficult to find merchants who accept cryptocurrency but now the situation is different. Now, there are a lot of merchants who accepts cryptocurrency offline and online. One can use bitcoins for the payment of hotels, flights, jewellery, computer parts, etc.

Even some places in India accept bitcoins as the payment mode. It can be widely accepted in:

• Suryawanshi restaurants in Bengaluru’s Indiranagar
• Whitefield Castle Blue spa and salon in Mumbai
• Startup Café co-working space in Gorakhpur
• Sapna bookstore (Sapna online) – one of the oldest and largest stationary segments
• Indsoft and Cyberls – webhosting service providers
• Reload - Online mobile recharge
• Tecdoc365 – Utility software management website
• Fashion diva – Online cloth and accessories portal
• EPaisa, a free point-of-sale app provide bitcoin as a payment option

Zebpay app allows you to buy vouchers of Amazon, Flipkart, Free charge, Book my show and Make my trip. It has also enabled its users to recharge their prepaid or post-paid plans with telecom operators such as Airtel, Vodafone, Reliance, BSNL, MTNL, Tata Docomo along with the DTH service providers.

There are so many other currencies like Ethereum, ripple and Litecoin that are not accepted widely yet. There is a gift card selling website like GIFT OFF cards it accepts 20 different currencies. One can essentially buy anything with that gift card.

And yes, there are marketplaces like Bitify and open bazaar that only accepts cryptocurrencies as a mode of payments.

Cryptocurrencies are the high-risk investment

Generally, people think it is the hottest investment opportunity because of many stories of how people are becoming millionaires only through Bitcoin investment. No doubt, we cannot ignore some of the stories are real. In 2016 it was recognizable currency 1btc=$800 and after one year it was $7000.

Then comes Ethereum – the second most valuable cryptocurrency whose value was increased by 2700% in 2016.

After going through all these facts, you can guess that cryptocurrencies are highly risky and their market value fluctuates like no other asset.

Bit of Caution

Now, if you are planning or want to invest in this currency then of course bitcoin is still the dominant one but in 2017 its value of shares is fallen dramatically i.e., from 90% to 40%. Due to this, suddenly people are stopped doing demand and does not spend their Bitcoin because they want to spend it at the highest value as a result its value got suddenly dropped to 40% due to low demand and low supply.

Although, bitcoins are easy to buy because there is numerous exchange that trades in BTC as compared to other cryptocurrencies.

People are crazy about cryptocurrency and are curious to know how to acquire, trade, invest and profit with cryptocurrencies. Here are some of the following steps:

Step #1 Online Wallets and Exchanges

• Coinbase​­: Now in 28 countries, Coinbase is considered the global bitcoin wallet and exchange. It is super-fast and easy to create an account and get it verified. This wallet will serve as the cash out method as they have the best rates for selling bitcoins.
• Xapo: It gives 50 Free bits (5,000 satoshis) for signing up​ and have higher transaction fees.
• Crypsy: This exchange along with the 2 below serve as a wallet and exchange for all the other cryptocurrencies.

Step #2­ The Direct to Xapo Sites

• Bitcoinker: Every 15 minutes you can either collect a guaranteed 750 satoshis.
• Bitcoin Zebra: ­Feed the zebra and win up to 2000 satoshis every hour!
• Moonbit: ­ Moon Bitcoin is a bitcoin faucet with a difference.

Step #3­ The Direct Pay Sites

• FreeBitco.in: ­Roll once an hour for your chance to win up to 0.75617226 BTC. You can also play their multiplier game.
• FreeDogeco.in: ­ Sister site of Freebitco.in but with Dogecoin.
• BitVisitor: You can reach the 60-bit payout every day.

Step #4­ The Paid to Click Sites

• BTCClicks: ­ Reach payout daily, lower payout and instant withdrawl when you use your Xapo account.
• CoinAd: ­ Can reach payout in a couple of days.
• CoinHD­: Paid to watch videos. Payout is 60 bits, can be done daily, instant withdrawals.

Step #Investing

• Earn Tomorrow: ­ Earn 10% interest send to your account daily for life. The minimum deposit amount is 0.0005 BTC.
• CryptoPyramid: ­ Flexible membership fee (you can start with 0 BTC!) Unlimited hierarchy Half of deposited money goes to random members.
• BTC­124: ­ Instant withdrawals. No Minimum to invest. Earn 0.07% hourly for investments up to 10 btc.

Warning

No promises are given as to the validity of all these sites as even the legit ones can be taken down any day. Use these sites at your own risk.

Oversight Role

There has been a debate if the cryptocurrency continues does it bypass the oversight role of central banks. Cryptocurrency seems to have revolutionized and with the advent of digital currency, the business is done it is obvious that the centralization of the financial activities is threatened.

The needs and advantages of creating a government-backed cryptocurrency with a fixed exchange rate to the US dollar or the value of the International Monetary Fund’s Special Drawing Rights (SDR). The development of cryptocurrency has proven there is a market demand for a method of quickly transferring value without the use of the traditional banking system. A government thus can meet the market demand for Crypto-Currency (CC) by supplementing its currency with a centrally managed crypto-currency, with a fixed value to its currency or the SDR,

Further analyses are required to understand the regulatory, organizational, and technological requirements needed to implement a Government-Backed Crypto-Currency (GBCC). No doubt, the government-backed cryptocurrency has the benefits of monetary stability and increasing network externalities. But we should keep a check on financial crimes like tax evasion, money laundering, online gambling, etc.

Perhaps it is time to look at it as a modern evolution of money and the right approach is for lawmakers, regulators, economists, and software developers should come forward to create an enabling environment to accommodate the innovation. Without an amicable solution, it will eventually succeed in disrupting the global economy.