Jul 9, 2020 08:07 UTC
Jul 9, 2020 at 08:07 UTC
Currency is anything that is in circulation and can be used as a means of exchange. More importantly, it must be widely accepted so that it has intrinsic value. In the early days, the barter system was widely used. Gold and silver coins began to be used much later. Among several experiments were performed on the use of unusual items as currencies. In ancient Sparta, for example, large iron rods were used as coins. This was done to prevent the prosecution and keeping people focused on state development. In the Pacific island, the yak, giant, motionless circular stones were used as currency. These were called Heavenly Stones. Often the coin was as large as a person’s height. Therefore, the currency is something that can be used as a medium of exchange and is acceptable to all parties involved in a particular transaction.
The value of bitcoin varies completely on demand. It is not a guaranteed gold or ruled currency. This causes large fluctuations in the value of the currency.
Bitcoin value fluctuations are a problematic issue. Replacing traditional currencies is extremely difficult not only because of the problem associated with acceptance but also because of the constraint of supply. New bitcoins are introduced into the system through the mining process. Computers are used to solve problems and successfully solve the rewards of the account’s bitcoins. The system is designed to gradually reduce the supply of bitcoins and reach a theoretical maximum of 21 million bitcoins by 2025.
Cryptocurrency has begun to expand into more and more fields, such as gaming sites where players can enjoy all sorts of games, like online slots, poker or sports based. Some of these gaming websites started to accept the bitcoin currency too. The system operates the software guides and runs the game, with minimal human intervention. For games that require all human players, the software plays the role of the mass dealer (actually runs the game). Poker is the most popular game of bitcoin casinos, while a lot of other games, lotteries and other interesting variants of popular games exist (and continue to be invented).
The advantages of using bitcoins are the following:
1. Cost: As there is no third party involved, the cost associated with using the currency is reduced.
2. Security: distributed records make transactions very difficult to modify.
3. Anonymity: The user has anonymity because the transactions are associated with the account and location, not the individual user.
Bitcoin was created and is designed for use only in digital space. Therefore, its competitors can be classified into two groups:
1. Products that facilitate electronic commerce
2. Sovereign coins
Products that facilitate e-commerce:
Traditional payment portals such as Paypal, EBS, Citrus, Bank wallets, etc. The Indian government came up with the Unified Payment Interface. In UPI, instead of transferring money to a wallet, the money is debited from the bank account. UPI is built on the IMPS platform. It was built by NPCI. Even in the case of micropayments, it faces competition through QR codes. Apps like Google Pay also offer stiff competition. This slows down the adoption of cryptocurrencies. Another important way is the currency used in games. Some games have started using bitcoin as a currency in the game. However, most do not accept it. Eve-online uses its own ISK currency. World of Warcraft is theoretically designed to prevent players from using the real currency for game requirements. Use game gold.
But the most important challenge is the sovereign currency. No country would want to hand over the power to print its own currency. Such a move would destabilize the economy. This is true for rapidly expanding economies, as new money needs to be introduced continuously to ensure increased productivity. Lack of money would increase the value of money. This can lead to unemployment problems.
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