Maybe if this is the first time you've heard about cryptocurrency, you are wondering, "What on earth is cryptocurrency?" Is cryptocurrency money?
We all know that dollars are money, gold and silver are money that we can spend in real life. But why?
Because it is generally accepted that a certain currency has value and that the government is behind legal currencies such as the United States dollar as an endorsement of trust, such money can become a circulating currency, and the more people who agree, the more liquid the currency becomes.
So whether a thing can become money, as a means of payment, depends on whether most people agree on its value. The same is true of cryptocurrencies, which can be used as a means of exchange for transactions only if everyone considers them to be trustworthy.
Cryptocurrency refers to “encrypted currency.” Cryptocurrency's ancestor, Bitcoin, is technically based on cryptography, because only cryptography can guarantee its credibility. Once encryption is cracked, it cannot be used as a currency, which is why it is called "cryptocurrency".
Cryptocurrency is a digital currency without central authority, meaning that no individual or institution, such as a central bank, controls it.Without a central authority, there is no need to trust any one entity to control accounts, balances and transactions.Just like on a large, globally distributed ledger, everyone trades with cryptocurrency, and everyone can share and view transaction data for that ledger, which technically improves transparency and ensures authenticity and reliability of transactions.
With the above principles, what are the advantages of using cryptocurrency?
The biggest feature of cryptocurrencies is that the decentralized system provides access to money for all, without being restricted by financial institutions such as traditional banks.Because you don't need to open a bank account to have an encrypted address where you can receive assets, you don't need to submit all sorts of identification documents. You don't need to worry about your bank rejecting your account request, and you can freely use your encrypted wallet for transfers and other transactions.
Based on a decentralized, self-running economic system, cryptocurrency transactions protect the privacy of personal transaction data and are difficult to scrutinize.
Cross-border remittances are still a cumbersome matter for different countries, and it is often necessary to open an offshore bank account in order to send money to friends abroad or buy goods abroad. You also need to wait for circulation and review [of documents and funds] within the banking system, and the arrival of funds is slow.With cryptocurrency, however, all you need is an encrypted address to make payments and transfers around the world quickly and efficiently.
In today’s epidemic and global turmoil, you only need an encrypted address to complete global cross-border payments and transactions. Let’s open the world of crypto together!