Bright Future For Crypto Currency
Crypto currencies have been gaining popularity in use as the emerging alternative form of payment globally.
Crypto currencies include Bitcoin, Ethereum and other many assorted forms of currency. Crypto currencies work on the platform that is free from interference and control of central banks. It works on blockchains that work on peer-to-peer networks. It is not minted and printed traditionally like other forms of currency. It is mined using complex mathematical computations that ensure the supply is fairly restricted.
One unique feature of crypto currency is that it offers confidentiality that traditional currencies may not offer. This makes it the ideal way of making financial transactions for people who value their privacy and wish to remain anonymous. This currency offers security features that make it practically impossible to trace the participants in a given financial transaction. This is important also in ensuring that the transaction is safe and secure from hackers. It is almost impossible for hackers to steal or trace the history of crypto currency transactions.
Crypto currency is also difficult to imitate when compared with traditional currencies. The use of encryption in the process of mining the currency ensures that it is difficult to counterfeit it. The mining involves computer programming that uses mathematical computations that generate the currency. It makes use of a private and secure database that guarantees the integrity of the mining process. The algorithm used in the process of generating crypto currency is extremely secure. The currency also employs encryption in each transfer and exchange.
The IMF is planning to introduce digital currency similar to bitcoin and will be known as IMF coin. This move by IMF is important as it points to the future direction that monetary systems will function. As the international body that is engaged in managing the global financial system, this move paints a bright future for crypto currency. The IMF is considering replacing the existing reserve currencies with crypto currency in its special drawing rights (SDR).
At the same time, individual countries are also launching their digital currencies in the anticipation that it will eventually become the new international reserve. An example is the government of Dubai, which has launched Em-cash. The adaptation by nations globally to currencies that are digital in nature is also another positive sign that the future is bright for crypto currency. This move by nations globally will eventually lead to the IMF regulating exchanges between nations based on crypto currency.
Perhaps the most compelling reason that shows us that crypto currency has a bright future is that it has only gained strength since its inception. Started in the 1980s by David Chaum, it grew in acceptance over the years both in the number of currencies and users. The year 2008 was a watershed year for crypto currencies when Satoshi Nakamoto reinvigorated the concept of digital cash using peer-to-peer networks. This shows that it is a growing movement with a bright future.