What Is Cryptocurrency?

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The digital age, also called the information age, is defined as the time period starting in the 1970s with the introduction of the personal computer with subsequent technology introduced providing the ability to transfer information freely and quickly.

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The digital age is also known as the era that we live in today. From personal computers, to tablets and cell phones, information can be processed more quickly and efficiently than ever before. Thanks to such revolutionary technology combined with the fast processing of information via an internet connection, we have seen a dramatic increase in the presence and usage of digital services. There are mobile apps for almost every facet of life, including the sectors of business and finance. We moved from cash, to credit cards and now into the expansion of what is known as cryptocurrency.

Cryptocurrency is decentralized digital money designed to be used over the internet. In other words, cryptocurrencies are an digital means of exchange created and used by private individuals or groups. Because most cryptocurrencies aren’t regulated by national governments, they’re considered alternative currencies — mediums of financial exchange that exist outside the bounds of state monetary policy.

OK…So what’s all the fuss about?

According to one of the top and most secure leading platforms used to buy, sell, and store cryptocurrency, Coinbase there are many benefits to using to using cryptocurrencies:

Privacy When paying with cryptocurrency, you don’t need to provide unnecessary personal information to the merchant. Which means your financial information is protected from being shared with third parties like banks, payment services, advertisers, and credit-rating agencies. And because no sensitive information needs to be sent over the internet, there is very little risk of your financial information being compromised, or your identity being stolen.

Security Almost all cryptocurrencies, including Bitcoin, Ethereum, Tezos, and Bitcoin Cash are secured using technology called a blockchain, which is constantly checked and verified by a huge amount of computing power.

Portability Because your cryptocurrency holdings aren’t tied to a financial institution or government, they are available to you no matter where you are in the world or what happens to any of the global finance system’s major intermediaries.

Transparency Every transaction on the Bitcoin, Ethereum, Tezos, and Bitcoin Cash networks is published publicly, without exception. This means there’s no room for manipulation of transactions, changing the money supply, or adjusting the rules mid-game.

Irreversibility Unlike a credit card payment, cryptocurrency payments can’t be reversed. For merchants, this hugely reduces the likelihood of being defrauded. For customers, it has the potential to make commerce cheaper by eliminating one of the major arguments credit card companies make for their high processing fees.

Safety The network powering Bitcoin has never been hacked. And the fundamental ideas behind cryptocurrencies help make them safe: the systems are permissionless and the core software is open-source, meaning countless computer scientists and cryptographers have been able to examine all aspects of the networks and their security.

This global trend has even taken mega financial giant, PayPal by storm. In October 2020, PayPal announced that its customers would be able to buy, sell, and hold Bitcoin and cryptocurrencies using their PayPal accounts, allowing customers to buy things from the 26 million sellers who accept PayPal.