Cryptocurrency: Definition, Uses, Benefits, and Limitations

Cryptocurrency

Table of Contents
CRYPTOCURRENCY....................................................................................................................3
Thesis...........................................................................................................................................3
Definition.....................................................................................................................................4
Uses/Applications........................................................................................................................5
Benefit 1: Easy Transactions.......................................................................................................5
Limitation 1: Price Volatility and lack of inherent value............................................................6
Conclusion...................................................................................................................................7
References:..................................................................................................................................8

CRYPTOCURRENCY
Thesis
Cryptocurrency is a virtual currency, that is protected by cryptography, which makes it almost
impossible to counterfeit or spend it more than once. Many cryptocurrencies are decentralized
organizations in the light of an innovation called block chain which is a dispersed record
authorized by a different organization of computers (Boukhalfa, 2022). A characterizing
component of cryptocurrencies is that they are by and large not gave by a focal power, delivering
them hypothetically insusceptible to government obstruction or control. Today, there's many
thousands and thousands of virtual currencies available, with 10,000 expected by 2022. The
following are some of the most cryptocurrencies:
Bitcoin is the most widely used virtual currency in the world. Crypto currency is so well-known
that it was once used interchangeably with the term "virtual currency"(How Bitcoin works,
2020). However, potential investors should be aware that bitcoins were becoming extremely
expensive. The price of one Cryptocurrency in mid-2020 was $70,000.
Altcoin is a term that refers to any digital currency that is not bitcoin. Eth, one of the speediest
cryptos on the industry, is the most common in this ecosphere. There are a variety of other
altcoins available today, including Luckyblock, Shiba Inu, and Terra.
Crypto tokens - Many people are perplexed by the distinction between crypto currencies and
tokens. Coins and gift cards appear to be the same at first glance. However, there are numerous
differences between the parties. Coins can be mined, but tokens can't, and bank notes are linked
to blockchains, whereas tokens aren't. They differ in terms of the type of product they permit
customer to buy in terms of capability.
Benefits
1. Easy Transactions
2. Incredible Security
Limitations
1. Price Volatility and lack of inherent value
2. Scalability