The News channels, newspapers & social media started discussions on bitcoins. It became big news after the world war II It was a big story. The story of Kristoffer was spreading across borders like a dropping bomb on the earth. A new virtual currency appeared with stronger image than traditional currency on the land where people do rely on paper & gold currency. People neither heard nor seen such a mega increase in profit ever before & this increase happened in the money of internet.
It brought a change in basic assumptions in understanding the power of virtual currency. people became curious to know about digital currency with global existence. It was entirely a new experience for public the method from which the crypto currency transactions occur i.e. cryptography. With the passage of time people begin relying on this programmable currency. There is a significant increase in coins mining, Cryptocurrency trading exchanges has been reported.
The penetrating aspect of Bitcoin forced people to think would real money replaced by the Cryptocurrency?
Bitcoin currency does not survive itself and can’t find customers, it is the technology that cryptocurrency built on it. Certainly, technology has impact with outcomes which shifts traditional way of life to technology mode of life.
This programmable currency is built on high tech networks that is more efficient, secure & fast. To understand the effectiveness of the cryptocurrency we need to take a glimpse on what benefits we have already acquired in our life by using technology.
Let’s consider the day of elections. People do electronically cast their vote through computers, mobiles in different states. All these votes are collected at a server then count them and announce results. This result is unanimously accepted on relying on automated vote casting procedure because people do have believe on server that will not give us defraud result where all votes are counted at a single server.
The protocol on which the Bitcoin is built where all functions which are guarantee the integrity of financial system with Bitcoin has been distributed through the network. Every 2 minutes hundreds of thousands of Bitcoins are being made by computer and ledgers keep record of track of coins this is the way the Bitcoin works therefore technology will survive this decentralized system.
The undernoted significant points give us a vision to overview the after affects when cryptocurrency become more popular than traditional money.
1. Remove dangers of centralizations
For the last two decades, we have been using digital money. We deposit our utility bills by debiting our accounts or via credit cards We do online purchases through credit cards, PayPal account or wire transfer etc.
Our ability of freely transactions across borders that must face some hindrance in form of gatekeepers or if our account like PayPal is suspected then it should be blocked so we should not be able to get the amount.
Due to gatekeeper barriers, speed and transaction cost becomes high. When we remove human and institutions from the loop then the cost and speed both will increase. In a Programmable work, we remove humans and institutions and money is directed by the software. Cryptocurrency is the first step of this evolution. This is not run by government or banks and it does not need to ask permission from anyone.
This decentralized currency is based on special field of mathematics i.e cryptography. The blockchain facilitating secure, fast & costless transactions.
2. Payments become easy & cost effective
People have been facilitating with the availability of digital money to the corners of mundane. The work of e-commerce is doing well buying / selling on Amazon or Alibaba & people do pay with the bank debit / credit cards. People send remittance using available channels banks, western unions across the border from one place to another.
Sending money by using the Bitcoin blockchain as an alternative to automated clearing housing system used to transfer fund from one place to another. Banks can save billions of dollars if they use blockchain instead of the Automated Clearing Houses (ACH), (The system is helpful in movement of funds at one destination to another destination) payment for transfer of fund. Some banks have been hired blockchain engineers to expedite their process. One of them is Citi Bank. Blockchain payment systems facilitates transfer of fund of any size at lower cost instantly.
According to the study of bank of Satander UK plc, it is revealed that banks can save 20 million dollars worldwide is there send money from blockchain instead of automated clearing houses systems for their internal transfer
3. Reduce heavy personal work
While connecting to noncash assets to blockchain like stocks futures because there is total security on blockchain so this form of system would be able to replace the paperwork and personal heaving system. Any size of payment would be cost effective.
Save your hard-earned money. When you pay through the park mobile, (mobile apps) connected to parking system, you pay more cents because it ignores extra cents which goes to credit card companies the block chain currency parking system would save amount to avoid extra payments.
4. Smart contracts automated efficiently:
Blockchain asset ledgers can execute smart contracts automated efficiently. Even in daily life matters like inheritance laws, if a person’s father died leaving a some amount of money in his account so bank will try to find that his son has legal heirship status or not. The person should have go through a lengthy process but if the property entered into a distributed blockchain ledger instead of Will on paper document then a distributed program would automatically transferred the property to the right person ledger when it learn that the original owner had passed away because all programs live on this blockchain are secure as secure on ledger.
The person should have go through a lengthy process but if the property entered into a distributed blockchain ledger instead of Will on paper document then a distributed program would automatically transferred the property to the right person ledger when it learn that the original owner had passed away because all programs live on this blockchain are secure as secure on ledger.
Some people still reluctant to invest into cryptocurrency because they can’t see this virtual currency. There is a lot of fluctuations in cryptocurrency trading. For instance, one Bitcoin was equivalent to $960 in January 2017 & it climbed up to $4900 in August 2017. Similarly, it dropped down without any sign of indication.
The only tool through which people determined the existence of this programmable currency is market capitalization & daily trade volume of cryptocurrency.
Regardless of it, Cryptocurrency has been widening its scope by gaining popularity among people. Bitcoin which has some characteristics of paper money like credibility, acceptability & transferability. People begin to rely on this virtual currency. Big ventures have been undertaken between giant companies. For example, U.S. blockchain company R3 Holdco LLC and Ripple Labs Inc entered into agreement. According to it, Ripple Labs Inc provide privilege to R3 to buy per unit of Ripple (XRP) for $0.0085, estimated $5 billion Ripple (XRPs) till the period of September 2019.
It has also been observed that some cryptocurrency is exchangeable with fiat currency at restaurants, shops, banks. For instance, Ten X cryptocurrency initiator has launched a debit card through which a user can convert his / her cryptocurrency with fiat currency on the spot & can buy pizza, coffee, coke etc.
The rapid growth of cryptocurrency is gives an indication that in future, people mostly do rely on cryptocurrency instead of paper money because blockchain using the currency are more effective, secure & fast than Banking payment systems, mobile apps payment systems or credit card systems. Developers of cryptocurrency have been creating unique applications for utilization of networks. Banks have been taken initiative to hire blockchain engineers to facilitate their payment systems.
Day by day, people have been fascinating with exposure of technology underlying the existence of cryptocurrency. This will bring a transitional change in a society from traditional currency towards digital currency.