Is Cryptocurrency the Future of Monetary Transaction? - VastlyCurious

    Nowadays, we have heard a lot about Bitcoins, dodgecoins, Ethereum coins, and all sorts of cryptocurrencies. Most people argue that cryptocurrencies are the most convenient way of money exchange. It also seems to be the most protected currency as it is completely virtual and can't be stolen. Is it the future of monetary exchange? Is that the end of paper currencies? How is that going to affect our environment? 

    The idea of cryptocurrency interests many people because it is a form of monetary exchange and acts as an investing tool. It is also protected by Blockchain technology and it is purely virtual. Every transaction you make will be stored in many databases and so you don't have to worry about your payments anymore. But the value of these currencies are not standard, so their values could also hit rock bottom. Is it really safe to invest in?

What is Cryptocurrency?

    Before understanding what Cryptocurrency is, we must understand how the monetary exchange works. After the barter system, the gold and silver coins came into the picture, and later the monetary exchange was taken over by banks. Banks approved the use of paper currency as the standard form of exchange.

    But after our technology growth, we don't need to carry paper currency anymore and it has now become virtual. Boom! Now the Cryptocurrency has arrived at the scene and got a lot of attention.

    Cryptocurrency is basically a digital currency that could be used to buy anything you want. It also uses an online entry and it only stores the data of the most secure online transactions, only the details of the transaction are sent to the ledger whereas the details about the sender and receiver don't leak out. You don't need banks anymore as digital currencies only need ledgers to store transaction details.

Cryptocurrency

 Even the remote areas could get access to Cryptocurrency even if they didn't have a bank in their area. The International payments could be easily done in a day. But the problem with cryptocurrencies is that they are highly volatile. Even a single tweet from an influencer could change its value. 

    There are over 10,000+ different cryptocurrencies in the contest now and the hype of it seems to increase every day. Bitcoin was the first Cryptocurrency to be released for trade and it is the most popular one, today.

Why the hype of Cryptocurrencies?

Cryptocurrencies have gained a lot of attention in our society and some people think that it is the future of currency. They think that it could soon eliminate the use of paper currencies. The fact that it doesn't have any centralized authority and the information about our transaction could be accessed by any device.

Blockchain Technology

     It is also based on blockchain technology and so it's a decentralized technology and is more secure than normal payments. Even the international transaction can be done quickly and there is no need to wait for the transaction to happen. In banks, there is always a limit on your monetary transaction, whereas, in this digital transaction, we don't have to worry about the exchange rate, interest and the maximum limit. 

    But some argue that these currencies are not stable and cannot be used for a long time investment. Cryptocurrencies are not going to eliminate the traditional currencies because they are highly volatile and not everybody will be interested in gambling with their money.

Which Cryptocurrency should I invest in?

Every digital currency has its own benefits and its own drawbacks. There are:

• Bitcoin is the most popular and considerably faster Cryptocurrency. 
• Ethereum is faster than Bitcoin and it is ranked second in the total value in digital currency.
• Litecoin is the recent one in the game and it follows a new algorithm than others.
• Cardano is considered to be a technologically superior digital currency. 
• And Finally, Dodgecoin is the latest sensation and it basically came out of memes.

Told you! There are far too many options and it is difficult to pick one.

Dodgecoin

Will Cryptocurrency crash?

    These digital currencies have been hitting all-time high nowadays, is it time to invest in Cryptocurrency? Before you proceed to invest, there are things you must take into consideration. The fact that many countries like China have already allowed the ban on digital currencies.

    Recently Elon Musk tweet about not accepting Cryptocurrency payments in his industry because of the negative impact on the environment made the value of Cryptocurrencies hit rock bottom, Proving the volatile nature of Cryptocurrency. So there is more chance of you becoming bankrupt than you become a millionaire after your investments. So would you still take the chance?

     And since the details of the receiver and sender remain unknown, this could also be used for making illegal transactions. To avoid illegal transactions, the other countries could also ban the use of Cryptos. Monitoring every single transaction might not be easy for governments. There are still various confusions over the deciding authority of these currencies. 

    Digital currencies are not going to become the standard way of money transactions just not yet. There is also a high possibility of the crash of digital currencies.

How does Bitcoin mining impact the environment?

    In his recent interview, Elon Musk told us about the negative effects of bitcoin mining on our environment. How could the process of bitcoin mining affect our environment? Since Cryptocurrencies are based on a decentralized network, every single transaction is stored in the ledger in all of the Cryptocurrency mining systems and so every transaction could potentially need more electricity.

Blockchain Technology

     The process of mining itself takes up a lot of electricity as the miners have to verify every single transaction. So if the price of digital currencies, so the amount of electricity needed to verify the transactions. That could increase our carbon footprint a lot and it could become dangerous for our planet.

Conclusion

  The possibility of having digital currencies as the future of monetary transactions sounds cool and it really has some amazing Benefits. It might just be the way forward. But we should also consider its volatile nature and mainly the effects it has on our environment. With its volatile nature, you wouldn't want to invest in Cryptocurrency and lose all of your life savings. Before investing do some proper research and consider what is at stake!