Reasons Behind the Invention of Cryptocurrency?

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It is a well-known truth that cryptocurrency usage has skyrocketed in popularity over the past several years. There were over 1,600 cryptocurrencies in 2018. The very first cryptocurrency was Bitcoin which was introduced in the year 2008. The name Satoshi Nakamoto was given to either an individual or a group of people who developed the cryptocurrency known as Bitcoin. Go to https://bitcoin-360-ai.org/ if you like to have some more ideas on this above-mentioned app.

Reasons Behind the Invention of Cryptocurrency

History of cryptocurrency

The barter system was used by people in the caveman era where 2 individuals exchanged services and goods with one another. For example, somebody might exchange 4 apples for 4 oranges. However, due to its inherent weaknesses, the barter system was eventually rendered useless and fell into disuse. For example, unlike contemporary currencies, it was difficult to transfer goods easily. Moreover, there wasn’t any common measure of value in those days.

When people came to understand that the barter system was useless, they made several iterations. An official currency was introduced in 110 B.C. and gold-plated florins came into being in 1250 A.D. The paper currency became well-known extensively and was used across the globe. In this way, modern currency was born in the long run.

Modern currency comprises coins, paper currency, PayPal, Paytm, and so forth. These were all regulated by financial institutions, implying that a centralized controlling authority put limitations on the workings of credit cards and paper currency.

Nevertheless, it is a fact that modern currencies have got certain limitations as well that we have elaborated on below:

  • There might be a technical issue with the server of the bank.
  • It might be possible for your account or that of your known person to become hacked, for example, identity theft.
  • The transfer limits for the accounts of you or your buddy might have been crossed.

In all these cases, it is the bank that has failed miserably to deliver the goods.

For this reason, cryptocurrency is considered to be the future of the present currency system. Suppose 2 people are involved in transacting by making use of Bitcoin.. However, due to its inherent weaknesses, the barter system was eventually rendered useless and fell into disuse.

All these issues related to modern banking will be resolved with the introduction of cryptocurrency. You will be able to transfer as many funds as you like and it will not be feasible for your account to get hacked.

Why was Bitcoin created?

The Bitcoin concept came into being when people encountered the Great Financial Crisis and the financial world depended heavily on banks for financial transactions. Nakamoto wanted to disintermediate the banks from any kind of financial transactions whatsoever. His primary intention was to create a peer-to-peer system of payment that didn’t depend on any 3rd-party confirmation. In this way, there was no need for the banks to involve in every single financial transaction.

Nakamoto’s primary goal was to design a decentralized, “trust-less,” and decentralized financial system. He stated unequivocally that the reason he came up with the idea for the digital cash system was to do away with any third-party intermediaries that are generally necessary for the process of transferring digital currency from one party to another. Third parties are in the habit of incurring some charges to conduct these types of services. Following this, these expenses will be handed over to the consumers who happen to be the end users and it will limit transactions below a specific size. These types of expenses comprise the following:

  • Taking proper security measures – Costs linked with security violation risks given that they happen to be centralized repositories of sensitive information.
  • Covering the expenses of the back office – the effort made by it for gathering and reconciling transaction information.
  • Plus accounting for any kind of fake activity – the expenses related to refunding cash in the event of fraud as well as others.

The majority of these expenses happen to be a fixed sum of money per transaction irrespective of the size of the transaction. Nevertheless, the juice will not justify the process of creating smaller transactions in the long run.

We like to conclude this article by asserting that Bitcoin Pro can be considered to be the ideal solution in case you want to trade Bitcoin and other digital currencies.

Cryptocurrencies are becoming global slowly but surely and you should take advantage of them without making any delay.

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