ESSAY ON CRYPTOCURRENCY

 

Introduction
Cryptocurrency or Crypto, is a virtual currency that uses cryptography to secure transactions. It is a digital, encrypted and decentralized medium of exchange. Cryptocurrencies are generally not issued or regulated by governments or other financial institutions. The decentralized nature of this network makes it theoretically immune to government interference.

 

Type of Cryptocurrencies
The first type of cryptocurrency was Bitcoin that remains popular even today. After the success of Bitcoins, new types of cryptocurrency began to emerge. These cryptocurrencies are known as "altcoins". Ethereum, Solana, Litecoin, Cardano, etc. are some other popular cryptocurrencies. These are helping to create decentralized financial system.

 

Advantages
The advantages of cryptocurrencies include cheap and faster money transfer. The decentralized system do not collapse at a single point of failure. They enable secure payments without the need of third party like credit/debit cards or banks.

 

Disadvantages
The disadvantages of cryptocurrencies include their price volatility. Their prices can suddenly rise and drop. Without government regulation, cryptocurrency may be used for illegal activities such as money laundering, tax evasion and even for terror-financing. Cryptocurrencies are not accepted everywhere as a legal tender.

 

Conclusion
Cryptocurrency is gaining popularity rapidly and many companies are investing in crypto. The countries have to devise a mechanism to reduce the limitation of this network but at the same time allow the system to function without losing its essence.