If you are reading this and have heard the term cryptocurrencies before but have been for further explanation on what they are, how they work and their advantages are, you have come to the right place. Over the next few blog posts I will give you the ins and outs of the often misunderstood cryptocurrency and, hopefully provide the relevant insight you have been looking for. In my opinion, cryptocurrencies are our future and it is important to understand what they are and how they work. Cryptopcurrency is sure to be the subject of many financial news stories in the coming months, so, the more you learn now, the more knowledgeable you will be and the more confident you will feel. As people learn more about these cryptocurrencies and start to understand and believe in their value, they have the potential to shape the currency market, and our lives, in the not-too-distant future.
What is Cryptocurrency?
In simple terms; it is the means to exchange digitally. The cryptocurrency that started it all and is still the most widely recognized is Bitcoin. There are plenty of notable differences between cryptocurrencies and the similarities are just as vast and they extend beyond price alone. Essentially, like our well documented traditional currency market, the individual cryptocurrencies were designed with the same objective in mind and have the same functioning purpose.
Advantages of Cryptocurrencies:
Virtual currency users consider these cryptocurrencies to have many advantages over our traditional currency and are attracted to cryptocurrency because of some of the potential advantages they can offer. These advantages can include:
• Secure holdings?
• Fully anonymous
• No middleman
• Fast transactions
• Can be used by anyone in any Country
Now that cryptocurrencies have begun to evolve and have become more widely known and accepted, more platforms are accepting the well-known Bitcoin as payment, and not exclusively for ecommerce and the like, but traditional store-front businesses are slowly adapting and choosing to accept payment in cryptocurrencies.
In Canada, acceptance has been slow and technology is still young. Think of how people felt about the internet in 1997, it was still evolving to what we know today and continues to evolve every day. Today, there are companies such as Xapo that have a debit card that can process Bitcoin transactions. I think it is not too shocking to think that the use of cryptocurrencies could become a norm for many people. It will be and interesting ride and I am excited to see where it takes us.