Know more about Cryptocurrency
Cryptocurrency is something that we always hear is decentralised. But what exactly it means?
Google says that Decentralization means the transfer of control of an activity or organization to several local offices or authorities rather than one single one.
In simple words, the meaning of Decentralization is that no single entity controls it, but many people/organisations do. So there is no central authority like banks or the governments that have any command over it. These cryptocurrencies are the type of currencies that can be paid from one person to another without any financial institutions' involvement. This is very threatening to banking institutions cause it sweeps away any requirement of them.
For ordinary people, cryptocurrency is more powerful since it cannot be manipulated, censored or confiscated. You can move it in your world in a safe way just by transferring few bits whenever needed. It's just like Gold but in a digital form. Various countries have tried to shut the cryptos down. Still, they couldn’t do it since these regulators modulating the exchanges don’t control them separately, and no regulator has the jurisdiction or the ability to do so. The only way to shut these down completely is to turn off the internet. The people who designed it were very clever, and that’s why it is beyond the governments reach. The problem is that there is no backing of cryptocurrency, so it doesn’t have the same standards of protection as other standard currencies.
Governments are saying that these currencies are serving a purpose for illegal activities. But if someone wants to deal, they don’t mind dealing in any form of assets that hold value. Criminals will accept cash, gold, stocks, information, or anything else that is of utility to them in exchange for their assigned job. Governments are just frustrated about this as they don’t know how to scrutinise them, and it just doesn’t fit into their pre-existing laws easily.
Regulating these Cryptos is just absurd. Have you ever heard of regulating gold exchanges and keeping a check on them?
Now the next thing that everyone is worried about is the energy required to mine these Cryptos. Bitcoin is one of the examples of high energy consumption coin while mining. Researches are going on to reduce this energy utilisation, but I’m very sceptical about it. Although if we compare it to others, it is less. Resources and energy consumed in the mining of Gold is more than mining of Bitcoin. Even printing of banknotes and coins consumes more energy than Bitcoin. Miners are going where the energy is cheap and abundant and where Hydroelectric plants or geothermal plants are located, not just the coal-fired plants. But regardless of the above facts, saving energies is still a concern in all parts of our lives and should be dealt with effectively.
Speculation is what drives the value of cryptocurrency. Every day the large and powerful organisations are approving the concept that it could be worth something. The idea and its acceptance are growing day today. Don’t forget that it’s highly volatile, and keep your eyes open if you are a part of this community.
