A cryptocurrency is a digital currency which introduced majorly in 2009 when Bitcoin was launched in the market. This currency is managed using very advanced encryption techniques are called cryptography techniques. It was created by a factual person who never revealed his true identity. Bitcoin became the most popular cryptocurrency soon after when it launched in the market. Bitcoin reached its peak when its market value reached $2 billion. Some other similar currencies have also been produced in the world which seems to prevail everywhere instead of dollars, euros.
Current Standard of Bitcoin
Bitcoin is the decentralized currency which is developed on the peer-to-peer technology. This currency includes all features like currency issuance, transactions procedures, and verifications. As it is decentralized currency, therefore, it is free from the influences of the government. It is created digitally through “mining” which needs very powerful computers to solve very complex riddles and algorithms. Currently, only 25 Bitcoins are produced in every 10 minutes. These are the qualities which make Bitcoin so different from the fiat currency. Fiat currency is managed and supervised by the government and central banks while cryptocurrency doesn’t have such standards. No taxation is involved in this currency while on the other hand flat money consists of a lot taxes on each withdraw and transaction. This currency doesn’t have any upper limit it purely depends upon the client the amount he wants to invest.
The main advantage of cryptocurrency is its anonymity during its transactions. Therefore, it is most favorite among the people who are involved in illegal activities like money laundering, drugs, smuggling and weapons dealings.
Enhancement in scrutiny
Because of the popularity of the currency, it has attracted many regulatory agencies which are no rendering their influences on its users. Financial Crime Enforcement Network. SEC, FBI and Homeland Security departments are sorting ways to control this currency somehow. The objective of these institutes is to control crimes like money laundering, drugs dealing and smugglings. To achieve that purpose they are willing to freeze accounts and arrest responsible people.
Because of the tremendous success of Bitcoins, many companies made their ways to this industry and introduced many other cryptocurrencies like Bitcoin. Following are the important currencies launched in the world.
Litecoin: Litecoin is considered the most significant rival of Bitcoin which was launched in 2011. It is very effective with small transactions because of its speed. According to the founder Mr. Charles Lee, Litecoin can be mined on normal computers, but Bitcoin needs very heavy desktops. Maximum limit of Litecoin is 84 million which is four times more than Bitcoin. It has the transaction time of 2.5 minutes which is 4 times less than Bitcoin.
Ripple: Ripple was launched in 2012 by OpenCoin company. Like Bitcoin and ripple, this is also a currency and payment method which allow its user to make very quick transactions. It can be converted to any other currency as well as Ripple. Bitcoin takes ten minutes to confirm its transaction while on another hand it is very quick it just confirm its transactions in a couple of seconds.
MintChip: It would be very strange to know that unlike other cryptocurrencies, it was introduced by the Canadian government institutes. It is actually a smart card which holds digital values. Its electronic values can be transferred from one MintChip to other MintChip. Unlike other cryptocurrencies, it is backed by Canadian dollar which is physical currency.
Future of Cryptocurrency: The future of Cryptocurrency is very high. Because of several issues appeared in Bitcoin many other currencies are introduced in the market which is providing better options than Bitcoin does. The awareness about Cryptocurrency is increasing in the developing countries as well. People are willing to invest more and more in Cryptocurrency.
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