Cryptocurrency — A boon or a bubble?
Have you ever heard your friend saying “Bitcoin is up by 5% 😊”, “Solana is down by 3% 😔”, or maybe “I earned $100,000 last month on SHIB 🤑”? Or is someone saying that these are all bullshit and a waste of time?
No? Well, by now we all must have at least heard of the word “cryptocurrency (a.k.a. crypto)” once. But what is it? Is it a money-making machine? Or a large scam going around?
Well, cryptocurrency is nothing but a virtual or digital currency that uses cryptography to secure and facilitate transactions. Unlike INR, USD, etc., these are not controlled or held by any central authority and use a decentralized system to record transactions and issue new units.
But is it really worth hundreds of thousands of dollars? Well, like every other asset or utility out in the world, each cryptocurrency has its own use and value. And like the stock market, it is traded by those who believe in it, resulting in prices and volatility. And just like the stock market, the prices follow zig-zag. But is it a bubble? A big NO! Cryptocurrencies are here to stay and revolutionize a lot of things out there.
Some of the use cases for crypto are:
1. Make cross-border payments seamless.
2. Transparency in processes.
3. Storing important information on the blockchain will keep it secure forever.
4. Convert illiquid assets (homes, etc) to liquid and have money on the go.
5. And you can even buy Tesla now 🥳
That’s it for today! I hope you enjoyed reading!