The monetary system of a country is an integral part of its economy. The growth of a country is decided on the basis of its economy. Money or paper currencies are the most acceptable and easiest way of transactions. But with the development of technology the transactions have been made digital and online transactions became more easier because there is no need to carry money always with you. In this thought with one step ahead cryptocurrencies were introduced. This was introduced by Sateshi Nakamoto.
What is a cryptocurrency?
Cryptocurrencies were developed on advanced mathematics and computer engineering that make them virtually impossible to break hence they are leverage blockchain technology to gain decentralization, transparency and immutability. Cryptocurrency is a digital currency which is built with cryptographic protocols that make transactions secure and difficult to fake. These are not controlled by any authority therefore, they are expected to maintain transparency. These exist outside the bounds of state monetary policy. They are treated as an alternative economy.
The transactions take place directly between two parties using private and public keys. The transactions are irreversible and instant in nature. Cryptocurrencies money free from political influence.
Is it safe to use cryptocurrency?
Even though cryptocurrencies are quick and transparent in nature but they are also highly risky because of its illiquidity and value volatility. They are also used in black and grey market transactions. It may fall into the hands of hackers and other cyber security issues may rise. Also because they are not under the supervision of any authority if anything illegal happens no one could take the responsibility. This is another example which proves that technology is useful at the same time it should be cautiously used.