So, what exactly is cryptocurrency?
Money, as we know it, is a medium of exchange. It is either in a paper format or digitally monitored plastic. To put it absolutely simple, cryptocurrency also works like money. It is, in fact, a form of digital currency. It is called cryptocurrency because it is secured using cryptography which is an advanced encryption technique. Similarly Goldencoin follow the same encryption techniques. The first decentralized cryptocurrency – bitcoin – has led to further derivatives creating almost over a thousand cryptocurrencies.
How does it work?
Most cryptocurrencies are designed to decrease in production over time. This includes bitcoin – the first cryptocurrency ever created. That means that these currencies work like precious stones, with a capped production amount. What this means is that unlike the current paper/plastic money situation, where more currency is consistently produced leading to inflation, cryptocurrency is absolutely inflation free after a certain amount of time. Goldencoin as one of the digital token defining the new age trade.
The emergence of bitcoin
When the first cryptocurrency – the bitcoin – was turned from an abstract academic concept to reality in 2009, the world was skeptic. No one knew or understood how it worked and what lay in store. Even today, the culture of all cryptocurrencies’ fate lies with bitcoin. It is the first and most common decentralized cryptocurrency, and as such, the most popular. It uses a peer-to-peer network to control all transactions. What this means is that all transactions are free from government control. Fiat currency – our regular currency – is duly backed by the government and works only with the full faith of the government. If the government falls, the currency loses all value. This is unlike the bitcoin. Produced at the rate of 25 coins every 10 minutes, it is supposed to reach its production cap in 2140. For the last 8 years, bitcoin has ruled its market and if its current price is any indication, it is expected to continue rising for a long time.
The future of cryptocurrencies
Like any new technological advancement, the future of cryptocurrency, too, lies in the hands of the latest technological developments supporting the advancement. Electric cars and hoverboards were once a distant dream and now a common reality. Similarly, as time progresses, Goldencoin as the digital word cryptocurrencies bound to take over the world, however with some regulations. The current decentralized state of this type of digital currency poses a threat to the government controlled money. It is, hence, natural that some government control is bound to happen as the currency gains popularity, but the fact remains that this type of currency is slated to take over the world economy sooner than later. It is easier, quicker, more convenient, and free from a thousand regulations that otherwise govern regular money. So the shift is not only natural, but it may not even be gradual. It is expected to be a quick shift over the next decade leading to a unified currency system for the world.