Cryptocurrencies also known as crypto are upending the business world and the way consumers do business.
The creation and the usage of cryptocurrencies all over the world is akin to the American gold rush of the mid-1800s.
Cryptocurrencies are replacing traditional currencies – paper monies, coins – when paying for goods and services.
The use of cryptocurrencies still is in its infancy stage – despite some already impressive numbers.
Today, the crypto market is valued at around $1.75 trillion (U.S.) — roughly the value of Google.
But even that is peanuts considering some projections.
Rogoff, Harvard University Professor of Economics and Public Policy, a crypto advocate, projects the market will explode in the next five years – reaching a value of $5 to $10 trillion.
But with any new and major business development there are fierce advocates and fierce critics.
Looking back in history – both Facebook and Twitter faced the same situation.
And just like Facebook and Twitter – crypto will be transformative, affecting all of us individually and our institutions.
So What Is Cryptocurrency?
Simply put crypto is any form of currency that exists digitally or virtually, using cryptography to store that currency – used by individuals, groups, and businesses.
Cryptocurrencies are not regulated by national governments and are not subject to the monetary policies of governments.
They are meant to replace traditional currencies such as paper money and coins. So instead of paying your bills, buying services or products, in the traditional way you can pay with cryptocurrency.
And crypto also can be used to invest – much like investing in stocks.
And wealthy investors have invested in crypto in droves.
Kevin Rose, a senior crypto reporter for the New York Times, put it this way.
“The crypto boom has generated vast new fortunes at a clip we’ve never seen before — the closest comparison is probably the discovery of oil in the Middle East — and has turned its biggest winners into some of the richest people in the world, essentially overnight. Some riches could vanish if the market crashes, but enough has already been cashed out to ensure that crypto’s influence will linger for decades.”
One thing is crystal clear – as crypto will be used more and more its political and economic impact will be dramatic and far reaching, affecting all of us.
Why was digital cryptocurrency created, who is using and why.
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