So maybe doing your grocery shopping through BitCoin might seem like a distant, and unlikely, dream, there are several things cryptocurrencies can be used for right now! By analysing the current trends we can also speculate about what lies ahead and visualise what a world with cryptocurrencies would actually look like!
The world’s second largest cryptocurrency, Ethereum, has allowed for the creation of Smart Contracts, with several other AltCoins following suit. While you might hear terms like Smart Contracts, cryptocurrencies and Blockchain bandied about, it can be hard to make out the differences between all those buzzwords.
Blockchain technology is taking the world by storm. Although Blockchain is very closely associated with cryptocurrencies, it is a unique type of technology with huge potential outside the world of BitCoin. Blockchain is being used for several other types of industries; such as the property market, the medical industry and even create wholly new types of infrastructure!
Cryptocurrencies were created to avoid the issue of governments printing new money, causing inflation and decreasing the collective value of everyone’s savings, as happened during the Bailouts of 2007/08. In order to prevent inflation, several cryptocurrencies have a limit, or a market cap which would be reached sometime in the far future. Once the limit is reached, no-one can create more. For instance BitCoin caps at 21 million coins. Most cryptocurrencies do not have a central, regulating authority, instead, they operate in a fully decentralised system which means that no single individual or group has totalitarian control over your finances.
Cryptocurrencies, such as BitCoin, are an innovative type of currency that relies on Blockchain technology. The whole point of these digital currencies is to make transactions quick, easy and without third parties such as banks charging fees. Several businesses have already begun making use of cryptocurrencies, most notably BitCoin (BTC). Getting set up couldn’t be easier!