Cryptocurrency, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. The system doesn’t rely on banks to verify transactions. Cryptocurrencies record transactions using a decentralised system. They don’t use a central issuing or regulating authority unlike many other systems.
The first cryptocurrency Bitcoin, was found in 2009 and remains to be the most popular one today. Nowadays many cryptocurrencies have emerged in the market and are at skyrocketing prices. People trade with cryptocurrencies for profit and just like the share market, buying and selling regulates the prices.
According to PWC, “In recent years, cryptocurrency and in particular, Bitcoin has demonstrated its value, now boasting 14 million Bitcoins in circulation.”
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How does Crypto Work?
Cryptocurrencies work on the concept of mining and run on a distributed public ledger called blockchain.Blockchain is a database that stores decentralised record of transactions electronically in digital format. A blockchain collects information together in groups, known as blocks, that hold sets of information.
If you own cryptocurrency, you don’t own anything tangible. What you own is a key that allows you to move a record or a unit of measure from one person to another without a trusted third party.
Although Bitcoin has existed since 2009, applications dn types of crypto are emerging in financial terms, and more users are expected in the future.
Where Can You Use Crypto for Real in India?
- Restaurants
Many restaurants are now becoming completely digital and have taken an initiative to accept payments through cryptocurrencies. With things becoming digitised, and catching up with the trend, Delhi’s Ardor 2.1 in Connaught Place has become one of the first Indian restaurants to accept cryptocurrency. They have come up with Ardor´s Digital Thali which can be ordered from the digital menu available at Ardor 2.1. The thali has very yummy looking dishes and you get 20% off if you pay via cryptocurrency.
- Social Media Platforms
With Facebook becoming Meta and the company mentioning to build the world’s biggest social media metaverse. It was just a matter of time that Facebook would have launched their own cryptocurrency Diem which appears to have been bought by another company now. Twitter also had plans to integrate cryptocurrencies into the platform with things like Bitcoin tipping for creators. Twitter has a vast user base of 192 million daily users which can mean huge profits for Bitcoin. The major social news aggregation platform Reddit also has plans to create an NFT marketplace in the near future.
- Online Betting Sites
All the online gaming or betting sites now come with an option to pay through one or another cryptocurrency. Payment options through Bitcoin, Litecoin and Ethereum etc. are very common and some betting sites like Dafabet also give a special betting bonus for all new players in India, when signing up through Bitcoin. This not only attracts new users but also makes their transactions fast and easy. Since crypto works as a decentralised platform your user information is completely safe and there is almost no chance of a financial risk.
- Hotels and Resorts
Over 10 hotels in and around the world have now started accepting cryptocurrency as the method of payment. It all started with the Pavilions Hotels & Resorts becoming the first global boutique hotel group to accept cryptocurrency for hotel bookings, in turn, initiating a revolution in the tourism industry in terms of secure online payments. They accepted over 40+ cryptocurrencies which made them a popular destination among travellers in many countries. After that many other hotels in Dubai and Switzerland started accepting cryptocurrencies for real online payments.
Types of Cryptocurrencies in Use
Though there are thousands of cryptocurrencies in use these days but the best known include:
- Bitcoin
Founded in 2009, Bitcoin was the first cryptocurrency and is the most commonly traded.
- Ethereum
Most popular after Bitcoin and developed in 2015, Ethereum is a blockchain platform.
- Litecoin
Litecoin is similar to Bitcoin but has quickly developed new innovations, including faster payments and processes to allow more transactions.
- Ripple
Ripple was founded in 2012 and follows a distributed ledger system used to track different kinds of transactions.
The Future of Cryptocurrencies
Cryptocurrencies can be considered to be safe from hackers since they have information stored in blocks which is making more and more GenZ to adopt it. This is in turn causing more and more industries to adopt it to promote their businesses. As decentralised platforms, blockchain-based cryptocurrencies have the potential to disrupt the existing financial order and democratise finance. The size of the cryptocurrency space has grown really wide and is on the rise with more innovations coming up.
