The way we know what money is, is now changing due to the emergence of cryptos. In every country, money is centralized. There is a central body that keeps record of the amount of money one is dealing with, every transaction and also businesses. There is no anonymity in this process and there is a control in the hands of the central body. As a challenge to this form of money, cryptocurrencies were launched as a decentralized form of money. Bitcoin is the first ever currency to be launched back in 2009. These currencies have no real existence in this world. No one can actually hold one in their hand. It only exists on the internet and one needs to buy these currencies in exchange of real-world money.
Cryptos use online ledger where the details of all the coins and transactions are recorded. It uses a technology called blockchain which is decentralized. It is spread across computers and ensures security of the coins and transactions. There are many companies which have issued their own cryptos which are known by the name of tokens. One can use these to buy products and services from the business that issued them. There are a lot of cryptos in the market- more than 13000 to be precise. All of these currencies are traded publicly. These currencies are still proliferating through ICOs or initial coin offerings.
The popularity is high
When it comes to the reasons for the popularity of cryptos, there are quite a few actually. People, who support and accept Bitcoin & Crypto, see these coins as a form of investment. There is also a rush for buying cryptos before the value of these coins go up even more. Some supporters are just fan of the idea of having no centralized system. Cryptos remove the centralized bank from the role of managing money supply. These banks reduce the value of money by inflation. That is why the absence of centralized banks is praised some of the supporters.
The blockchain technology is also a reason of its popularity. Supporters consider it to be safer than the traditional form of money and transactions. The upward value of cryptos is another reason for its popularity. People who support cryptos for their higher value, have no real interest in the long- term acceptance of the currencies.
Cryptos are now being accepted by some businesses. From online platforms to food chains, businesses are opening their arms to digital currencies. Due to this, one can buy services and products with the help of cryptos. Having some digital currencies in your wallet will ultimately help to get household items as well. These can also be used to buy travel tickets as well as hotel rooms. These coins are also considered to be a form of investment. As the value is going up at a constant rate, owning some now will help to earn more by selling these later. One must be aware of the fact that these currencies have no stability. That is why it is necessary to consider all sides before buying these currencies.