Cryptocurrencies are digital or virtual tokens that use cryptography to secure their transactions and to control the creation of new units. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services.
Cryptocurrencies are gaining in popularity among businesses and consumers. In addition to Bitcoin, there are now over 1,500 different cryptocurrencies, and the total market capitalization of cryptocurrencies exceeded $200 billion in December 2017.
Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services.
Why Use Cryptocurrencies?
There are a number of reasons businesses might want to use cryptocurrencies. cryptocurrencies:
Are secure and difficult to counterfeit
Can be used to purchase goods and services
Can be traded on decentralized exchanges
Are not regulated by governments or central banks
Can be used to store value
Have a limited supply, which can result in price appreciation
Are not tied to the performance of any specific country or economy
What Are the Risks of Using Cryptocurrencies?
Cryptocurrencies are still relatively new and are not yet as widely accepted as traditional forms of payment. In addition, cryptocurrencies are volatile and can be subject to sharp price fluctuations. Cryptocurrencies are also vulnerable to hacking and theft.
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