Will Cryptocurrency Replace Conventional Currency
Thursday, May 3, 2018
Thursday, May 3, 2018
Cryptocurrencies have grown in popularity over the last couple of years. It has gained significant interest in the financial sector because it uses cryptography and decentralized processes to improve the security of financial transactions. Bitcoin is the most popular and widely circulated cryptocurrency. It was the first to implement a blockchain-based distributed ledger system back in 2009. Over the years many other digital currencies have emerged in the market.
There have been mixed opinions on cryptocurrencies. Although many people believe that they could result in a more transparent financial system, others say they’re extremely dangerous – for example, the anonymous nature of cryptocurrencies has made them perfect for money laundering. Another reason why the pundits are skeptical is because of its high volatility. in late 2017, the value of Bitcoin alone surpassed $20,000, but it has since declined. Having said that, cryptocurrencies have a strong community that supports it. Twitter CEO Jack Dorsey recently predicted that Bitcoin will become the world’s main currency within the next decade. But is this really possible, and can cryptocurrencies really be trusted on this scale?
Cryptocurrencies are being used to fund illegal activities across the world. Computer hardware are being used to mine cryptocurrencies and the law enforcements can’t do much to stop this. Organizations are also coming under the attack of crypto jacking malwares that illegally take up your critical computing resources to mine cryptocurrency. The reality is that crypto-jacking devices bypass the majority of defense systems, making them untraceable. Much of the discussion currently surrounding cryptocurrencies is fixated on either how volatile they are, or their lack of regulation, both of which make the prospect of investing in cryptocurrencies risky. For these digital currencies to be a standard form of payment, generating investment from both investors and the wider industry, investors need greater clarity from the regulator on its approach to cryptocurrencies.
Clearly, cryptocurrencies aren’t without their challenges, however, blockchain which is the underlying principle behind bitcoin and other cryptocurrencies is more likely to be embraced by the world. Cryptocurrencies present a double-edge sword. While they can help businesses speed up financial processes by cutting out the middleman, there’s no shying away from the fact that they’re seen as assets by criminal groups.