Era of Digital Currency
Pioneer of digital currency i.e. Bitcoin rolled out in the year 2008 and is believed to be the biggest revolution after industrial revolution.
The first real known price of Bitcoin was 0.008 USD in 2009 and first real world transaction of Bitcoin was carried out on May 22, 2010. In that historic deal 10,000 Bitcoin were exchanged for two pizzas only, the deal took place at bitcointalk.org. It was considered to be first real-world transaction using Bitcoin. At the time, the exchange rate put the purchase price for the pizza at around US$25.
According to investing, following chart shows price comparison of Bitcoin starting from year 2012 onwards.
- Year Bitcoin Price in USD
- Nov 2012 12.6
- Nov 2013 1112.4
- Nov 2014 376.7
- Nov 2015 376.9
- Nov 2016 739
- Nov 2017 6500.2
In the year 2017 sun is about to set and it will be remembered as the year of digital currency. Although there are more than thousand known cryptocurrencies, bitcoin is the sole leader of this market. In the Year 2017, Bitcoin reached an all-time high value of 19,187 USD on Dec 16, 2017 (source).
Advantages of Using digital currency
Here are few gains associated with digital currency.
Decentralized and Distributed
The very first thing associated with digital currency is that its decentralized and distributed. The foundation of every digital currency is blockchain technology, blockchain in simple words is an electronic ledger that’s stored on thousands of computers across the globe. Whenever there is a transaction it’s updated on all digital ledgers, all these ledgers compare their values with each other to ensure uniformity, all this is done using blockchain protocols. If someone tries to enter a fake transaction, he has to replicate it on all ledgers, which is technically not possible.
Due to this decentralized and distributed nature, every digital currency is immune from fraud.
Free from Manipulations
Due to decentralized and distributed nature of cryptocurrencies, they don’t have unified control. All Bitcoin tokens are owned by Bitcoin community members and same holds true for other cryptocurrencies as well. What’s happening right now is that all fiat currencies like US dollar, UK pound are under federal government control and almost all central governments do manipulation with currencies under their control. Since there is no single owner of digital currency, it can’t be manipulated by few people for their gain.
Secure Transfer of Funds
With cryptocurrencies like Bitcoin, no personal information is transferred with transactions. Sender and receiver both remain anonymous in the process of sending and receiving. It’s a great way to do business in areas where the crime rate is high.
All Bitcoins transactions are strongly encrypted with private keys. As long as you keep your private key safe nothing can happen to your Bitcoins.
Instant Transfer
Gone are days when you need to wait for days and hours to send money to other cities and countries. With Bitcoins, you can instantly send coins to any corner of the world in just 10 minutes without any intermediary like banks or any other monetary service. All this is done with zero transfer fee, whether you are sending Bitcoins next door or to next continent.
Factors Driving Demand for digital currency.
digital currency market cap is over 400 billion USD right now, here are some factors driving demands of cryptocurrencies.
Crypto Exchanges
There are many crypto exchanges like GDAX, Bitfinex, bitstamp. Coinbase was overwhelmed by two to three times its normal traffic on Nov. 29, when Bitcoin’s price crossed 11000$ making its service temporarily unavailable for users. Crypto exchange work like a normal stock exchange, daily trading volume on every crypto exchange is in billions of USD. Seeing massive gains associated with digital currency trading, more and more people are opening accounts at crypto exchanges.
Many digital currency based hedge funds are coming up every week and their numbers already surpassed 100. Return from these digital currency hedge fund is more than 24000%. This is another motivating factor for people to invest in digital currency.
Initial Coin Offerings (ICO’s)
Another boost to digital currency is in the form of ICO’s. ICO provides a way for startups to gather funds for their future roadmaps. The biggest ICO’s of all time came out in the year 2017, Filecoin and Tezos successfully generated 257 and 236 million USD.
ICO’s require investors to buy stakes of a company by using digital currency like Bitcoin or Ether. ICO’s have successfully generated 2 billion USD of investment in the year 2017, compared to 295 million USD generated from the year 2014 to 2016 (Source). Investors are now getting serious towards ICO’s.
Here is an amazing representation of ICO’s token sale history.
Inflation-free Currency
Almost all fiat currencies have gone down in their values over time. It’s due to the fact that as more notes are printed price of currency goes down. Cryptocurrencies are free from inflation, as there are a finite number of coins for every digital currency.
Take the case of bitcoin, for instance, there will be 21 million Bitcoins ever generated and generation of bitcoin is halved every 4 years. It’s a rule when you have too many people chasing few goods, the price goes up.
Open to All
Two billion people worldwide do not have a bank account or access to a financial institution (source). Reasons is a majority of people can’t fulfill documentation and other formalities required for opening a bank account.
digital currency has opened his gates for everyone. Anyone can buy digital currency regardless of his country and with this currency, one can do almost all sort of financial activities like fund transfer, money lending and so on.
Conclusion
Gains associated with cryptocurrencies are enormous, it’s a future currency with frontiers that are yet to be explored by human minds. Bitcoin and other cryptocurrencies saw tenfold increase in the year 2017, experts predict that it’s just the start of the journey.
It’s a good time to invest in small digital currency like Ripple, Altcoin, Dogecoin as their prices are within range. Remember bitcoin was 0.008 in 2009 and almost 20,000 USD in 2017.
For more information please visit
http://www.worldcoin.cash
https://www.facebook.com/worldcoin.cash/
https://twitter.com/WorldCoin_Cash
https://www.reddit.com/user/WorIdcoincash
https://bitcointalk.org/index.php?topic=2877436.new#new
https://t.me/WorldCoincash
https://github.com/WorldCoinNetwork
Username: andylioe78
https://bitcointalk.org/index.php?action=profile;u=1330040
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