It mostly started in the year of 2009 when Bitcoin, one of the most popular cryptocurrencies, was introduced. Bitcoins gradually turned out to be one of the most popular cryptocurrencies. These cryptocurrencies are the most popular encrypted currencies which can be purchased or mined from Cryptocurrency Exchanges. As this is an encrypted currency, this is very hard to counterfeit unlike fiat money. Are you wondering what Fiat money is? Fiat money is the currency which is usually issued by governments of different countries. Each and every country has its own currency. Like the USA has the US dollar, India has INR, etc.
As Fiat money is issued by the government, it is completely regulated by issuers. This is the original backbone of the global economy. Common people use this currency in their daily life and the value of the currency is one of the measures to determine the stability of the economy of the country. Now you may wonder where to use cryptocurrency. Cryptocurrency is not issued by any government. This can be issued by any organization. Every currency is encrypted in its own way.
After cryptocurrencies were introduced in the market, people started investing in cryptocurrencies. At that time, this was another tool to invest in. Many people who are used to investing in the share market started investing in cryptocurrencies. Seeing the growth of blockchain and interest of common people to invest in it, many cryptocurrencies and exchanges of cryptocurrencies started getting introduced. Earlier it was as simple as buying and selling currency. With time many, new technologies were introduced in this niche. Now you can mine cryptocurrencies too.
Cryptocurrency mining can allow you to acquire a lot of profit and gain cryptocurrencies as rewards. Cryptocurrency can also reduce the need of third-parties for verification of transactions. This can make the transactions more secure. Seeing the huge participation of common people, many countries started thinking about how this field can be regulated. Earlier trading in cryptocurrency was not legal in different countries but now, situations are getting improved.
Although cryptocurrencies are not regulated by the government ,this currency is not illegal now in many countries. Even countries like El Salvador have already declared cryptocurrency as an alternative to Fiat money. People of that country can use cryptocurrency in their daily life. Many e-commerce sites allow users to use cryptocurrency to purchase products from their websites.
Many people have already started thinking cryptocurrency can replace Fiat money in the near future. Many economists are seeing this as a silver lining to reform the global economy with cryptocurrency. However, before thinking that far, cryptocurrency has to be more regulated by the government of each country. Also, there has to be a more simplified way to use cryptocurrency if this replaces Fiat money. With the rate at which cryptocurrency is making progress in the present days, we are really hopeful that we will see cryptocurrency as more than an investment tool in the very near future.