Which one to opt for: Fiat currencies or cryptocurrencies?
Nov 05, 2017 Posted / 3008 Views
The concept of cryptocurrencies is leading it to grab its position on a global level, standing against many prevalent currencies. The idea of cryptocurrencies is quite refreshing from the other currencies, like Bitcoin which gives a peer to peer decentralized system to carry out the transactions. Although the details of the mechanism behind cryptocurrencies like Bitcoin, Ethereum, Litecoin, Ripple is not clear enough to many people, day by day looking for the soaring prices of Bitcoin and various upgradation that are taking place in the cryptocurrency world, cryptocurrencies are surely making their mark.
Few features of fiat money can be given as:
1. Exchangeable: Money was able to replace the barter system.
2. Separable: Due to the divisibility of money which allows the flow of higher denomination currencies.
3. Resistant: It is a long-lasting mode of exchange.
The complex Bitcoin network runs on the cryptographic protocol where the blockchain acts a public database and the bitcoin is the modeling of a digitally signed transaction. As this is a peer-to-peer network, bitcoin accommodates the proof-of-work structure which is generally referred as mining.
It is a widely accepted digital currency and many giants have accepted it. With every passing year, the bitcoin network is expanding its pool of believers. From the year 2014, some big names like Microsoft, PayPal, Dell, Twitch, Reddit and many others are giving the chance to bitcoins.
Though cryptocurrencies are gearing up for the market to stand out in the world economy, it has a long way to go. Cryptocurrencies are too new to shake Fiat currency’s place in the world economy. No doubt cryptocurrencies are emerging as a better investment option than the past entities, but introducing in the economic system is a perilous affair.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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