London, UK, 12th August 2021, ZEXPRWIRE – Cryptocurrency is the hot new buzzword in the world of business and technology: there are now over 800 cryptocurrencies available online, some of them with market caps exceeding $10 billion USD. FinancialCentre Broker Nick Johnson says that such is the fever that hundreds of thousands (perhaps even millions) of people around the world are hoping to get rich by investing in cryptocurrencies such as Bitcoin and Ethereum. Some have gotten rich, but many more will lose money trying.
You might also be familiar with the concept of a cryptocurrency wallet. But what exactly is a cryptocurrency? How does it differ from ordinary currencies like dollars, euros, pounds or yen? And how do you actually use one? Here we present an overview of the confusing world of cryptocurrencies and attempt to answer these questions.
When most people today talk about money, they mean “fiat money” – that is, a currency that has value only because governments decree it so. These government-issued currencies have no intrinsic value: their value comes from the law. The value of a dollar, for example, comes from the fact that the U.S. government declares it to be legal tender: if you pay your taxes with dollars, and accept payment in dollars for any goods or services you sell, then the government is legally entitled to demand those dollars back – even if they have been physically destroyed.
The Massive Shift
The word “crypto” refers to a type of currency that only exists digitally, not in physical form. These types of currencies are also often referred to as virtual currencies or digital (or cryptocurrencies) cash. They also typically operate without the need for centralized control by government authorities – an approach that can improve privacy and security, but which also leaves them open to less-than-scrupulous players who may attempt to manipulate the system for their own benefit.
Cryptocurrencies have been knocking on the door of internet users since 2009 when it launched bitcoin as a decentralized alternative currency. Since then, hundreds of other variants have entered into circulation such as ripple (XRP), ethereum & litecoin just to mention a few.
These are quite controversial and have been the subject of much debate since their inception due to their decentralized nature. Unlike fiat currencies, there is no central banking system that regulates the supply of cryptocurrencies; they are not printed as physical cash but ‘mined’ in huge computing farms spread worldwide using high-powered computers that solve complex mathematical equations for a reward (in cryptocurrency form).
The value of any currency depends upon how much people trust it – if people start losing faith in bitcoin, then its value could drop precipitously. It’s this lack of confidence in virtual money that has prevented it from becoming mainstream so far: the very features that make cryptocurrencies appealing to many also make them vulnerable to misuse by criminals.
Investors Continue Looking At The Bright Side
Despite all these downsides, cryptos are actively being looked into by investors all around the globe. This is only because the profitable nature of the currency does not fail to attract people. Cryptocurrencies also bring about the power of transparency and ensure that no single individual can have total control over your money.
Huge financial giants have started accepting cryptos as a means of payment for goods and services. Microsoft is one of the companies that started accepting bitcoin early on. In the year 2014, the firm allowed consumers to pay for apps, games and other digital services. Apart from Microsoft, PayPal, Starbucks, Etsy are a few of the firms that accept bitcoin payment.
Amazon is an American based company that deals in electronic commerce. Amazon was initially known for its online bookstore, but today the firm has diversified and makes money from a variety of sources including cloud computing services, advertising, music, television production and even movie production.
Today, there are a lot of rumours afloat that the multinational company is ready to join the crypto gang soon. However, Mr Johnson says that the e-commerce giant has been exploring the area for quite a long now. It is just that they chose to remain silent largely. Jeff Bezos, founder of Amazon is yet to issue a statement regarding the firm joining the crypto market formally but we should remember that years back Amazon was planning on launching its own cryptocurrency and the plan was executed very well. Today thousands of people make use of AmazonCoins for purchasing Amazon hosted games and apps. The coin is similar to a gift card, which can be purchased and added to your account as vouchers used to buy apps, games or in-app items. Experts, like Mr Johnson, who are keeping a close eye on the movements of Amazon believe that by the time 2021 reaches an end, Amazon will be accepting some cryptos as payments for retail website purchases. Now only time can tell how calculated the next move by the e-commerce giant will be amid the rising uncertainty in the crypto space.
Disclaimer: Our content is intended to be used for informational purposes only.
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