Bitcoins and cryptocurrency are an emerging form of the mode of transaction that comes with our way forward towards a digital economy. Also, with them recently making a significant financial inclusion in the market, it is common to assume that cryptocurrency, digital currency, or digital assets are “disrupting the financial industry” and revolutionizing the existing ways of transactions.
How does our future with cryptocurrency and other forms of digital money look like?
Talking to experts, we get an insight that all of them have the same basic underpinnings of using the “blockchain technology”; a shared public record of transactions to create and track a new type of digital token – one that can only be made and shared as per the mutual agreement between two parties.
Even though Bitcoin is often said to be the catalyst behind the cryptocurrency movement in the past, most cryptocurrencies, and digital currencies are now very different from what their initial purpose was. Cryptocurrencies, tokens, as well as digital assets, are seen to be capturing the same market share, however, are focusing on different approaches.
Where token and coins each refer to a separate line of digital currency space, they are often confused for being same. The bold distinction is that “tokens” are built, and hosted on existing blockchains, while coins are digital currencies which have their unique blockchains.
Talking about these two, it is also essential to learn about much-hyped- bitcoin. Bitcoin has already arrived twice in the virtual wallet, but it doesn’t really exist as a concrete physical – or even digital – object. Each Bitcoin is essentially a computer file stored in a ‘digital wallet’ app on a smartphone or your computer.
That said, when comparing the future of different forms of digital currency, Blockchain technology has a brighter future than most digital currencies in general and Bitcoin in particular, judging from responses of the financial market.
Therefore, the next time you indulge yourself in virtual currency, identify and quantify the benefits of adopting a cryptocurrency that takes advantage of the potential of the latest technologies.