A cryptocurrency is a digital token or a type of digital currency that enables people to pay and receive money directly from each other online. Cryptocurrencies have no legal or intrinsic value; But it acquire the value of whatever people are willing to pay for them in the market.
Fiat money and cryptocurrencies are “fungible,” meaning they can be traded or exchanged for one another.
The five biggest cryptocurrencies are Bitcoin, Ethereum, Tether (USDT), Cardano, Binance Coin, and Solana
Main purposes of cryptocurrency
- Cryptocurrency is a digital payment system that doesn’t rely on banks to verify transactions. It’s a peer-to-peer system that can enable anyone anywhere to send and receive payments.
- Cryptocurrencies can offer lower associated fees and more cost-efficient transactions.
- Cryptocurrencies are a portrayal of a brand-new decentralization model for money. They also help to combat the monopoly of a currency and free money from control.
Why is cryptocurrency the future?
- Cryptocurrencies offer a solution to the monopoly of the world’s traditional financial systems. So a new monetary empire is thereby created to help individuals. Also, they help the global trading system
- Foreign exchange fees, long transfer times and high transaction costs have long been issues for businesses and individuals. Cryptocurrencies are the solution to these.
- Cryptocurrencies act as tools to enable an open, new, global digital economic transformation.
How Crypto Works?
Cryptocurrencies are digital assets. So unlike traditional money, they are intangible. Cryptocurrencies in general are “decentralized”. This means that no individual or organization can control its network. Therefore, holders of a decentralized cryptocurrency like Bitcoin have full control over their funds.
Also, cryptocurrencies operate on a new technology network called blockchain. It enables you to send and receive cryptocurrency tokens without the need for a third party, such as a bank. Some cryptocurrencies such as Bitcoin, Ethereum, Solana and PNB operate on their own blockchain platform. But in general, most cryptocurrencies operate on another blockchain. Some of them are Etherium, BNB and Polygen.
How does crypto get its value?
Cryptocurrencies gain value due to factors such as its supply & demand, dynamics, utility, circulation, network adoption, market dominance, technological advancements, impact of regulatory system, macroeconomic trends and speculation.
Who owns the most Bitcoin?
- The creator of Bitcoin under the alias Satoshi Nakamoto is thought to be the largest Bitcoin holder.
- The second position goes to the digital asset manager Grayscale followed by Binance, the top crypto exchange and Bitfinex.
- Interestingly, the fifth place belongs to the government of the United States of America.
- The Winklevoss twins, Michael Saylor, Robin Hood, MicroStrategy, Block One and OKX top the list of year 2023. They are called whales.
Bitcoin Pizza Day
The day is celebrated to mark the first Bitcoin transaction. On May 22, 2010, two pizzas were bought for 10,000 bitcoins at a time when bitcoin was relatively unknown.
During the early stages of Bitcoin, programmer Laszlo Hanyecz, who lived in Florida, decided to use his Bitcoins. He then posted a message on he BitcoinTalk forum saying, “I’ll pay 10,000 bitcoins for two large pizzas.” Jeremy Sturdivant
A few days later, on May 22, a person on the forum named Jeremy Sturdivant accepted the offer and delivered two pizzas from Papa John’s to Laszlo Hanyecz. It is worth noting that one bitcoin is worth $26,830.5 today and reached an all-time high of $69,044 in 2021.
The Top Countries that Use Cryptos and Bitcoin the Most
- United States.
- South Korea.
- Hong Kong.
How many companies are using crypto?
Approximately 15,174 businesses worldwide accepted Bitcoin, with around 2,300 of those businesses operating in the US. There are 36,659 Bitcoin ATMs available in the U.S., as of April 2022. As of 2020, 28% of American small businesses accept cryptocurrency as payment.
Some of the many benefits of cryptocurrency for businesses.
- No paper money required.
- Access to new liquidity and capital.
- Expanded payment methods.
- Potential for attracting new customers and demographic groups.
- Entry into the Web 3.0 world.
- Transaction transparency and auditability.
- Extra layer of customer privacy.
- Third-party interruptions come to an end
Companies using their own token in India
Tata Neu of Tata , Super Coins of Flipkart, Rapido coins of Rapido Bike Taxi and Freshcash of FreshToHome are playing the pioneer role in India. (Tata Coins are not related to TATA). At present, these coins are offered to their customers as reward points only. The customers can redeem the point values when they buy products from them next time. Obviously, these coins are not operating as a medium of exchange, yet.
Zaka coins of Bizaka have entered this field as a medium of exchange. Along with that, Zaka Coins are paid as rewards for those who buy fish from DawnFish, at present. But, Zaka coins operate in blockchain technology and are made to use as a medium of exchange.
What are Zaka coins?
Zaka is a community driven token made for the transaction purposes of Bizaka community’s start-up projects such as Webbazar and Dawnfish. This token was made on Binance blockchain platform in June 2022.
Growth and Functions of Zaka
- Zaka proclaims itself as India’s first retail cryptocurrency.
- Zaka is integrated into the Webbazar App. So this currency comes into use when trading on Webbazar.
- When customers buy fish through the DawnFish App, airdrops are made in their wallets.
- As gifts and freebies are provided for the business done on the above two apps, the business is likely to be high
- Zaka’s value rises when the demand for the Zaka exceeds its circulation.
- This hike in demand of Zaka benefits the Zaka holders and those who bought Zaka as an asset.
Web-3 technology, the third wave of the Internet, has given us many surprising introductions. In the coming times this technology will give us huge growth along with many start-up companies. Essential to this is cryptocurrency. So the existing leading companies and the younger generation who are advancing the technologies have given great support to it and started using it in their businesses.
As these businesses become popular among the masses, the value of that particular cryptocurrency that is integrated with them will rise.So a growing culture of buying cryptocurrency of emerging companies as an asset is also emerging, which is also commendable.
Author : Deyennae
Founder : Bizaka
Co-founder : Webbazar, Zaka Coins, DawnFish