What is Cryptocurrency?

In this day and age, tasks and processes such as online banking transactions are absolutely the norm for many people out there, yet cryptocurrencies are still a relatively emerging force within the financial world.

Is it just a fluke, or the future of finance? Perhaps, it is still early to say, but starting with a good understanding of the phenomenon is a good first step forward.

In essence, a cryptocurrency is a digital form of currency, as an alternative to standard currencies (such as the dollar), which people use to transfer funds and make payment without the need for a bank to process transactions, essentially working in a “peer-to-peer” fashion. The most well-known cryptocurrency, “Bitcoin”, is actually a great example of how this “decentralized” approach to digital currency is revolutionizing the way people think of capital and wealth in the digital age. Bitcoin has no central authority and no main server, relying on a peer-to-peer network to prevent fraud and double spending.

Opinions on cryptocurrency are still highly divisive. Some are afraid of this trend, while others see it as the future of technology and finance. One thing that is certain is that people, institutions and government are becoming more and more aware of this trend!