The world of cryptocurrency has created a boom period in the last few years as more and more people are becoming exposed to it. A lot of places are beginning to utilize it as a form of payment, like supermarkets, gas stations, and so much more. Casinos are evening accepting cryptocurrency as a form of payment and if you want to do something different you can also invest in Super Bowl betting using them!
There are some things that people that are skeptical about cryptocurrency just do not understand, and that is okay because today we are going to discuss what technology is needed to help people get a grip on what cryptocurrency actually is.
What Exactly is Cryptocurrency
To best explain this, I am going to use Oswego University’s definition of it, so we are all on the same page. “A cryptocurrency is a digital currency, which is an alternative form of payment created using encryption algorithms. The use of encryption technologies means that cryptocurrencies function both as a currency and as a virtual accounting system. To use cryptocurrencies, you need a cryptocurrency wallet.”
Now that can be a lot to digest, so let’s break it down a bit. Think of cryptocurrency as American dollars for this example. When you go to exchange it for a peso if you are traveling, the value is going to change, and each currency is going to give you a different amount for $1. Now each different coin is a different form of currency (peso, yen, etc), and they all have different values.
Now in order for you to use cryptocurrency, you need a crypto wallet that is free to create.
How to Help People Understand
As this can be viewed as an alternative to either cash or credit/debit cards, it could be a little confusing, so there should be technologies to help people get an understanding. There are YouTube channels dedicated to explaining what each crypto coin is and what makes them unique. It is almost like putting money into the stock market, as different factors are going to make the value of a coin (or stock) go up and go down.
However, there is not enough information as to what is causing this. Of course, cryptocurrency is currently unregulated, so there is not much safety if you fall for a “pump and dump” scheme or anything, so I recommend sticking with the basic coins (Bitcoin, Ethereum, Litecoin) until you learn more.
Explaining What Makes Cryptocurrency so Volatile
Cryptocurrency could shoot up and down a lot as there are really no rules in the market, and investors could put as much money they want into a coin to create the price to inflate a bit. However, some coins do have a limit, as Bitcoin can only be mined at 21 million, and scarcity will happen. Having some technology developed to further explain what coins market cap is and what to be doing in order to ensure you are making the right choices with cryptocurrency can really help get new people involved.
Conclusion
Cryptocurrency can be a scary place as there are a lot of different coins, a lot of people promoting coins to make some money, and so much more. Making sure that you are investing in crypto what you are willing to lose is important as it is not a sure thing that you will make a profit and could lose it all due to the volatility of the market.
However, creating technology that can help make things a bit clearer to the consumers and not make it feel like a place that is shady will definitely be a plus for everyone at the end of the day as there are more people inside of the market and coins will be able to get closer to no longer feeling endless.
If you have been skeptical about cryptocurrencies, what technology would you like to see to help you along in the process?