These days, there is a lot of excitement around cryptocurrencies. Everybody is talking about them but most have little knowledge regarding what they are or how they actually work. Cryptocurrencies are essentially a thing of the future, and today we are witnessing the dawn of this new technology that will change how we do things in future.
Basically, crypto-currencies are a type of money that we use in our day to day life to buy goods and services. But unlike traditional money, they exist only digitally or virtually and not physically. And the technology of cryptocurrencies can revolutionize the way we transact in goods and services.
Prior to this technology, it was not possible to make digital currency, because anybody could have hacked them or duplicated them easily. But cryptocurrencies are based on the technology of cryptography and blockchain. With the help of these two technologies, a unique identifier is generated for each transaction that is made in cryptocurrency, and it becomes impossible to be hacked or duplicated.
The majority of individuals today invest in cryptocurrencies in the same way they would in other assets like shares, bonds or precious metals. However, all of this may change in the future, and cryptocurrencies may in fact be used as a medium of exchange, similar to how cash is used today. However, the fact that being used as a payment method is only a small fraction of the overall influence that cryptocurrencies have on the global economy. They have the potential to be utilised for a variety of other applications, only time will tell what lies ahead.