Review of the book on economics – The Rise of Money, the financial history of the world Niall Ferguson

Cryptocurrency is a digital asset that is used primarily as a transaction tool to secure financial transactions, control the creation of additional assets, and verify any asset transfers using strong cryptographic technology. It is also known as a form of digital currency or virtual currency. Unlike central banking systems, it is a decentralized control and financial transaction system that operates through a blockchain used primarily for financial transactions.

The first decentralized virtual currency to be developed in 2009 is bitcoin, known as the virtual currency, and it operates independently without the help of a central bank or administrator. Since then, about 4,000 altcoins of various bitcoin variants have been developed. Bitcoin is seen as a peer-to-peer electronic cash system where users carry out transactions directly without any intermediate means.

Blockchain is a multi-block data file that stores a record of all previous bitcoin transactions as well as the creation of new ones. The normal average time between each block is about 10 minutes. The most common use of bitcoin is supported by external software called Bitcoin Wallet. With this software you can easily store, retrieve and manage bitcoin transactions. To make transactions using bitcoins, you need to have an account on any of the bitcoin exchanges around the world and transfer fiat currency to this account. This way, the account holder can make future transactions using these funds. Apart from bitcoin, some other sources of cryptocurrency are oil, which is mainly used for oil reserves and minerals.

There are some pros and cons associated with using digital currency. The main advantages of using virtual currency are the following:

• Provides a fast layer of transparency: –

Usually bitcoin works through an account book called Blockchain, which records and monitors every transaction. If a transaction is made and recorded in this book, it is considered static. These transactions can be verified at any time in the future, and thus, in addition to this, it also ensures security and privacy with respect to all transactions made through a particular account.

• Fast processing and portable use: –

Billions of dollars in bitcoins can be easily transferred from one place to another without any detection with a single memory drive. Any third party can be excluded from any transactions using this bitcoin technology. This will result in an easy and fast transaction without third party approval,

• Low transaction costs: –

The transaction costs associated with exchanging these digital currencies are much lower, making them more affordable than real currency for people around the world. Thus, the cost of any transaction is very lower, which is a beneficial feature for the public if they perform any transactions.

• Poverty alleviation and eradication: –

Often banking systems and financial institutions do not provide assistance and assistance, especially to backward classes in rural areas. Bitcoin is an alternative in cases where it distributes its reliable financial services to anyone who has access to the Internet. It often supports the poor and oppressed classes, who in most cases are given no viable alternative.

If there is a new or new technology, its use is also associated with some negative factors: –

• Ignorance and distrust of the population: –

Due to the lack of knowledge about digital currency, people are more likely to use it widely. Thus, there are very few business systems that accept these sources of cryptocurrency, which limits business systems that prefer to use virtual currency in their day-to-day operations.

• transactions that cannot be tracked: –

Because transactions made with bitcoin cannot be traced, this provides an opportunity for criminal transactions. In such cases, drug dealers and bona fide individuals use such virtual currency that their illegal activities are easy to detect.

• Unstable and uncertain nature: –

Cryptocurrency is sometimes volatile and continues to change frequently on a large scale. Sometimes people make big money when the market rates of these virtual currencies soar, and sometimes they also face big losses when the price breaks.

Cryptocurrency is an innovative but amateur concept that could potentially disrupt the entire financial market. It is true that this digital currency has attracted worldwide attention in a short period of time. Every new technology that comes on the market always has advantages and disadvantages. To make the most of this, you need to consider both sides before making any decisions.