Cryptocurrencies: A New World for Financial Markets

 

A digital and virtual currency, working as a medium of exchange and secured through cryptography, was introduced in the market popularly termed Cryptocurrency. In simple words, it is digital money, without any physical bills or coins. It can be easily transferred online to someone without a mediator. The two most renowned cryptocurrencies are Bitcoin and Ethereum, but more keeps on adding to the list.

 

If you had followed the cryptocurrency news closely, you might be aware of its usage. It allows secure payments online, denominated as virtual ‘tokens’, and are presented as ledger entries that are internal to the system.

Types of Cryptocurrencies

The first, most popular, and most valuable cryptocurrency was Bitcoin, launched in 2009. However, today there are many others with different specifications. Some of them are duplicates of Bitcoin, whereas others are newly-built currencies with specific features. Until November 2019, over 18 million bitcoins were circulated with a market value of around $146 billion.

 

Other cryptocurrencies generated after Bitcoin were known as ‘Altcoins’, which included Ethereum, Litecoin, Peercoin, Cardano, etc. The total value of all the cryptocurrencies has been around $214 billion, out of which around 68% has been represented by Bitcoin alone.

Cryptocurrency Usage

Cryptocurrencies like Bitcoin, Ethereum, Litecoin, etc. have been circulating in the market with different means, like purchasing, investing, and many others.

Purchasing Goods

Earlier, it was difficult to seek a merchant or business accepting cryptocurrencies, but nowadays, the situation is the complete opposite. Many online retailers or local shops, bars, hotels, even some colleges, etc. accept Bitcoin as a form of payment. Although Litecoin, Ripple, Ethereum, and many other digital currencies are not widely accepted yet. Even Apple has authorized 10 cryptocurrencies as a form of payment on the App Store.

Investment

Many people consider cryptocurrency as a great investment opportunity currently. Bitcoin is considered to be the most recognized cryptocurrency for investing preceded by Ethereum. However, in taxation terms, the treatment of cryptocurrencies varies from country to country. For instance, in the U.S., Bitcoin and other digital currencies are taxed as properties and not a currency.

Accept as Payment

In many places, it is accepted as a form of payment in place of physical denominations. You only need to let your customers know that you accept cryptocurrencies, with just a sign on your cash register and you would add more customers to your table.

 

The payment is made using touch screen apps, hardware terminals, or simple wallet addresses through QR codes. Moreover, in the U.S., cryptocurrencies are accepted as a form of payment just like cash, gold, or gift cards.

Final Consideration

While following cryptocurrency news, you will be well aware of all the limits that cryptocurrency is breaking these days. With the increase in the use of cryptocurrency and blockchain technology, an innovative financial system is created all around the world.

Although, a recommendation is always stated to go through all the cryptocurrency news and everything about before investing in it.