Cryptocurrency has gained immense popularity over the years and has become a hot topic of discussion in the media, especially regarding the most well-known one, Bitcoin.
So, what exactly is a cryptocurrency? In simple terms, cryptocurrency refers to a virtual currency that allows users to make secure payments online using virtual ‘tokens’.
Although cryptocurrency is often criticized for increasing illegal activity and the volatility of exchange rates, they have also increased transparency in the system as this currency cannot be easily counterfeited.
Why Have They Become So Popular?
With so much discussion about cryptocurrencies online, one surely wonders why these virtual currencies have become so popular of late. The main reason for their increased popularity is the security aspect linked with these transactions. It is considered much safer than traditional methods.
Apart from this, cryptocurrencies are now generating a tremendous amount of profit for those who invested in them early on. For instance, those who invested in Bitcoin when the prices were relatively low have now profited remarkably from this investment.
Another benefit of cryptocurrencies is their disassociation from world governments and authorities. This implies a greater chance of stability for these currencies, which increases their attractiveness to investors.
Interestingly, some of the cryptography used in cryptocurrency was initially used for military applications and governments wanted to put restrictions on the use of cryptography but this did not follow through.
Amongst the many cryptocurrencies that exist, Bitcoin remains one of the most valuable and well-known cryptocurrencies and was the first blockchain-based cryptocurrency to be created. Blockchain technology essentially means a system that stores transactional records and cannot be easily hacked or changed.
Following the immense success of Bitcoin, many other cryptocurrencies were launched for various purposes. Although not all of them have gained the same kind of popularity and market capitalization as Bitcoin, here are some popular cryptocurrencies that investors choose to invest in.
Read More: Will The World Shift To Cryptocurrency Since Musk Has Invested $1.5 Billion In Bitcoin?
As plenty of new websites start to accept cryptocurrency as a payment method, it is believed that cryptocurrency will become a significant feature of future transactions, if not the future of money itself.
Through the use of blockchain technology, the process of trading will become far more transparent and these cryptocurrencies will see an even greater surge in popularity.
Image Credits: Google Images
Sources: Investopedia, World Financial Review, Forbes
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