The functions of bitcoin/ crypto currency
A crypto currency is a computerized resource created to fill in as a medium of trade making use of cryptography to secure its transactions, and tto verify the transfer of assets and to control the how extra units are created.
Bitcoin is a digital currency that can be used to buy goods and services or converted to fiat money such as Naira, XAF, dollar, Euro among others. It is the first cryptocurrency created in 2009 by an anonymous person called Satoshi Nakamoto . Bitcoin and the technology behind its creation(block chain technology) has a wide variety of uses some of which we will discuss in this write up.
Cryptocurrencies have solve the problem of counterfeiting,identity theft,immediate payments, owning a bank account and high fees associated with money transfer especially internationally. Since cryptocurrencies and block chain are inseparable we will equally mention some funtions of this technology together with bitcoin and altcoins. Some functions of bitcoin and cryptocurrencies are :
Cryptocurrency as a medium of payment
Bitcoin and altcoins can be used to exchange for goods and services as earlier mentioned. Using bitcoin over the traditional currencies is very advantageous because, there is no risk of charge backs and your payment is confirmed instantly by verifying the transaction on the block chain. The cost involve in making a crypto currency transaction is very low compared with money transfer using banks, western union and money gram. At the moment to send $1000 worth of bit coin cost about 0.2$ as fees on blockchain.info wallet.
As a digital asset
Most cryptocurrencies can be considered as a digital asset but not all digital assets can be called cryptocurrencies. A digital asset is any text or media that is stored in digital appliances such as computers, mobile phones, tablets,media players and others.
An example of a digital asset is XRP whose value is determine by the Ripple organization. The value increases with demand. XRP is stored on a distributed ledger. This means the number circulating can be increased or decreased by the organization as opposed to bitcoin who value is fixed. Cryptocurrencies are issued on ablock chian while digital assets are issued on a distributed ledger. Most cryptocurrencies are decentralized whil digital assets can be controlled by a central body. That is the company that owns it.
Thus we can use cryptocurrencies to store our money just the way money is converted to gold,silver diamond and others for the future. This is still risky as the future of cryptocurrencies is not clear.
Source of Income
There is no doubt that bitcoin has made thousand of people rich and wealthy. A good example is the Norwegian student who invested $25 worth of bitcoin which is worth $1,280,000 today. Bitcoin has gain a lot of attention which has made people to invest in it so as to benefit from the increasing value . It is not adviasable to rely on bitcoin once more as a source of income because of the volatility problem. The value of bitcoin dropped from $20 000 to aboit $5000 from December 2017 to Febrauary 2018. Those who invested at the high price will need to wait for long to make profits. Getting into bitcoin with the midset of a lng term investor is safer . Making short term profits are possible with cryptocurrencies , but it is good that they should come as a surprise. That is one way to control your emotions.
Bitcoin and cryptocurrencies had led to creation of new careers . With the growth of digital marketing and digital careers, bitcoin being on of the most innivation has serve people in creating jobs with saleris of up to $100 000 per month. More jobs had been created such as in account managemnt,customer support, How ever, careers like cryptowatch,cryptocurrency account execeutive , crypto currency traders and others had led to more jobs and skills. Therefor bitcoin and cryptocurrencies serve as digital money as well as the game changer in the job market.
Block chain in Preventing Voters Fraud During Election
There is alot of talk about election especially in Africa. With block chain technology, an unhackable voting system can be created which can securely be used for voters registration,vote counting and real update of time and date of voting. Block chain act as a public ledger for cryptocurrencies. It can equally be used to create a real democartic election in the future . A company that comes up with such a system can create a cryptocurrency which the users of such systems will be able to pay for their services and exchange them on the markets too.
Using Block Chain to Improve Government Efficiency
According to an article published on Forbes.com, block chain technology can be used to improve government efficiency . This include domains like health care,education ,communication among others. One important aspect pointed out is the challenge faced in creating medical records .With block chain aspects like authentification,accountability, confidentiality and data sharing can be guaranteed with accuracy.
In 2017, cryptocurrencies were used to help Syrian refugees to buy food. These suggest that cryptocurrencies can be used to track refugee crisis in the future. Thanks again to block chain technology that all this is possible. Thus block chain, bitcoin and cryptocurrencies as a whole will provide a variety of functions to the mass, organization, governments, banks and more.
What do you think can be other functions of this revolutionary technology? Share with us in the comment section.