Purpose of Cryptocurrency
“People often do not want to understand what they are told, but they understand what they want or how they want to understand.”
The purpose of cryptocurrency is not defined accurately, so far. Unfortunately, cryptocurrency has been misunderstood by some people nowadays. At present the majority of people including the bureaucracy are not in favor of cryptocurrency. Because people want to understand it the way they want to understand. But not as it is actually.
However, the irony is that people are talking about it more and more now. Why does cryptocurrency become viral?
This article is to explain what cryptocurrency actually is and what is the purpose behind it.
Here, now let us briefly analyze this matter. The crypto professionals try to explain the subject technically. But a lay man was unable to understand the subject and hence he tries to understand it with his grand old syllabus he studied. And subsequently the contradiction arises. Hence here we explain the subject in the most simple and general way. The valid point are here under;
- Cryptocurrency is not a currency; but it is a transaction tool or a medium of exchange of a particular company or community.
- It also functions as a virtual asset at the same time when it acts as a transaction tool.
- Cryptocurrency is a unique internet protocol for exchange of value in digital transactions.
- Also it transforms the value of labor into a virtual asset unlike other currencies. For this reason it is also called a digital asset.
No government needs or wants to publish it. What the government needs is a digital currency only. That means the digital version of its own fiat currency. Such currency is called the Central Bank Digital Currency (CBDC). Many governments have already issued CBDC and India too has joined that club on 1st November 2022.
- But cryptocurrency has nothing to do with the protocol of government currencies.
- Cryptocurrency is not made as a threat to the monetary system of any government.
Cryptocurrency : the purposes
We can now do and achieve anything without stepping out of our door. Anything can be achieved through computers and the internet. But only one thing is difficult. We cannot exchange the value of labor through the Internet using old technologies. Blockchain-powered cryptocurrency addresses this shortcoming.
Transaction completes in seconds.
- Distributed Ledger Technology (DLT) eliminates register entries and human work.
- ‘Zero error system‘ nullifies any judiciary involvement.
- Need not any server and need not do any data maintenance for an individual/company.
- Intermediaries and central authority are completely rejected.
- Works beyond any territories.
- Very very economical.
The concept behind cryptocurrency
Initially, the individual labor of a country is transformed into a tangible or intangible commodity or service. That “labour exchange” took place in the early days in the form of ‘barter’ and in the later days in the exchange system of the respective country’s own currency. If that labor is saved in the currency of the respective country, it remains at that value no matter how many years. At the same time if it is converted into gold or property it will appreciate many times over time. In short, if your labor is money, it is depreciating day by day. If the same labor had perhaps been converted into property then it would correspond to the same labor of the respective period.
That means the value of the property will continue to rise. But no country can do justice to the loss caused by such a change of time if “individual labour” is stored in the currency of that country. It will never happen. But if transactions in national currencies are done in cryptocurrencies, individual labor will continue to rise in price over time. This labor valuation and labor exchange economy is designed and operated in a 100 percent democratic manner without any jurisdiction or authority.
Cryptocurrency : Current scenario
Hence a lot of blockchain systems and lightning networks (LN) have emerged to render the necessary cryptocurrency transactions and services. As such, a lot of cryptocurrencies are minted and get integrated with their own ‘startup’ projects.
There are more than 5000 currencies and tokens available as per Coin Market Cap (CMC). It includes Bitcoin, Ethereum, BNB, Polygon, Tron Solona, Lite Coins etc.
Besides, we want to emphasize that a cryptocurrency is good for nothing without a project or a business. If so, which will be described as a body without a soul. Of course, many people worldwide make coins without any cause out of that; which spoils the cryptocurrency ecosystem and people are cheated thereby.
At present, the total global systems are getting updated and converted into new technologies such as Blockchain, Web-3 etc. Besides, it requires a computer oriented “value exchange factor” for its appropriate functions. Fortunately, cryptocurrency has got every strength and potential to fit with it.
We can call cryptocurrency the refined barter system. In the barter system the whole value of the man work was enjoyed by both the manufacturers. Any third parties or government could not enter between both the parties and exploit. The same thing repeats now with the help of cryptocurrency. Yes, history repeats and hence the unwanted sixth fingers get rid automatically.
Author : Deyennae
Founder : Bizaka
Co-founder : Webbazar, Zaka Coins, DawnFish