Why is Gold …….. GOLD standard for the world?
There must be something alluring about this shiny & malleable metal that it’s not just a favoured base for luxurious jewels but most importantly it’s the Backbone of all Countries financial reserve.
Crypto Buzz around the world, its fancy architecture and sophisticated invisible mash of networks has crowned it as a CURRENCY?
The obvious question arises does it even qualify to be called Crypto CURRENCY?
The most indispensable Characteristic of a Currency is its Stability of value.
When you carry a 500 Rs note and go to a café to buy Cappuccino, it’s unlikely that the Barista is going to deny that the value of that 66 x 150 mm2 paper in your hand is not Rupees 500. But when you have for example 1 Bitcoin it is very much possible that its value is changed to Rs 450 in a matter of minutes or maybe worse.
The value of the traditional currencies don’t leak or for that matter gain in matters of weeks/days/minutes barring exceptions.
The challenge with Cryptocurrencies is that they do not represent stored inherent value but have mushroomed as a trading vehicle, providing thrill and transactional benefits to the speculator industry.
Their status as Currency shall be debated for a long time until they see the test of time, also the risks that are associated with them can’t be disregarded.
1. Technology for the Young Cryptocurrency is still a relatively new concept. Bitcoin was created around ten years ago and has yet to mature into a viable currency. With so many changes in recent years, it’s impossible to predict how the industry will develop. Only for a limited time, Bitcoin may be the first step toward a new monetary exchange, but few businesses accept it as a legitimate method of payment. Currently, just a few online businesses offer bitcoin trades, including Overstock, Newegg, and Monoprix.
2. Technology Reliance, Bitcoin is an online exchange that is reliant on technology. Dependence on Technology Bitcoin is a technology-based online currency exchange. Coins are mined digitally, traded through smart wallets, and monitored via a variety of methods. Cryptocurrency has no value without such technology. There is no tangible collateral to back it up, unlike other kinds of cash or investment.
3. There are no rules in place. Currently, there are no substantial laws governing the bitcoin industry. The government hasn’t taken a firm stance on cryptocurrencies because it’s still a relatively young sector. It is tax-free, which makes it an appealing investment prospect.
4. Cybertheft, Because cryptocurrency is built on technology, it is vulnerable to cyberattacks. Because there is no method to recover lost or stolen bitcoins, hacking is a major danger.