What we consider important is defined by how much value it is. Sometimes these forms of value take place in a form of a shiny object, shells, or gold – but for the most part, it is something useful.
Bitcoin is often labeled as “Digital Gold”, but I do feel that the label proves too far more superior to gold.
Most Currencies run into the same problems: Security, Transparent, Unmodifiable, Access, Efficiency
Here’s what Cryptocurrency is doing to solve all of these problems:
- Security: Cryptocurrencies are decentralized. They carry no records in a single location; rather they are populated in thousands of servers around the world! If one were to try to hack Bitcoin, they would need to disrupt over 51% of the servers that powers Bitcoin. In other words, it is NEARLY IMPOSSIBLE for a single person to disrupt these servers unless it was a planned coordinated attack. Also, it’s important to note that there are many incentives for not tampering with the systems.
- Transparency: 99% of cryptos are open source, which means that the code is visible for all to see, which increases confidence to trust in this system. The use of “explorers” is what makes everything transparent.
- Immutability: Once a transaction is complete – there can never be a record change unless the Bitcoin ecosystem collapses.
- Global Access: All that is required is internet access. Costs and speed of transactions will be the same from America to India.
- Efficiency: It takes a bank roughly 5 days to transfer money along with awful exchange rates. Cryptos solve this solution with times ranging from instant to one hour max. And since Cryptos are universal, there’s most likely no need to currency changes.
Hopefully, this guide further strengthens your confidence in cryptocurrencies. With plenty of corrupt and awful third parties, there is no need to put trust in such inefficiency.