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What Is Cryptocurrency?

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Upon the invention of the automobile, many people referred to them as horseless carriages – this is how we should think about cryptocurrency, a world-changing technology merely in its infant stages.

The subsequent rise of the automobile industry was undeniably successful, despite the initial lack of understanding by the public, and in 2021 most of us couldn’t picture our lives without motorized transportation.

A cryptocurrency is just a form of digital currency – just as a car is a method of transportation. The average person does not necessarily understand the inner workings of a vehicle’s engine or has a clear and concise grasp of its mechanic.

Simply put, they know that it works (not how), and they know how to use it!

Bitcoin or Ethereum?

The differences between Ethereum (ETH) and Bitcoin (BTC) have recently caught the attention of some major market players. Meanwhile, as institutional money enters the cryptocurrency market, the possibility of BTC and ETH being floated on the NASDAQ further adds to their credibility as an alternative to conventional fiat currencies.

Because the Ether network supports the development and creation of new applications, it is potentially a more valuable resource in the long term – this is evident by the much higher utilization rate for ETH, which had far more transactions than BTC in the last 12 months.

Due to its real-world applications and ability to store value, the Ether network shows more promise and potential in a way that legacy cryptocurrencies such as BTC simply cannot.

Cryptocurrency & Blockchain Technology

Cryptocurrency exists on a technology known as “blockchain” – a decentralized peer-to-peer network that relies on cryptography to verify transactions and track them on a chronological ledger.

For the first time in history, we have a way to uniquely identify every user in the system while guaranteeing that person is who they say they are. And we can do it anonymously – no personal information is required. And yet, we can ensure identity through this new form of digital fingerprint!

Each wallet address is unique – it cannot be forged, falsified, stolen, or counterfeited by any known technology. It is, in effect, totally bulletproof.

With this in mind, many economic analysts predict rapid changes to the global financial landscape as an inevitability.

Final Thoughts

Much like how a vehicle is a tool for accomplishing a means to an end, in this case, travel, a cryptocurrency is a means to an end for peer-to-peer, anonymous digital transactions – negating the need for a centralized third party. Think banks, payment processing services, etc.

To put it simply: cryptocurrency is the ultimate democratic tool. Many argue that cryptocurrency will directly affect, if not entirely disrupt, most industries while simultaneously altering the way people and societies interact.

But for cryptocurrencies to become more widely used, they must first gain widespread adoption among consumers. And while the number of merchants who accept cryptocurrencies has steadily increased, they are still in the minority. For now, the future of cryptocurrency remains largely uncertain.

One thing is for sure, however: cryptocurrency won’t be going away anytime soon. However, only time will tell if this accelerating trend continues.

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