Many newcomers to the cryptocurrency market are often confused and overwhelmed with complex terminology and technical data. As with any new and emerging market, there is much information to absorb and understand. This new language often creates a barrier that many people fail to navigate, and with this in mind, cryptocurrency is no exception. People need to become aware of the actual crypto business, which necessitates long-term practice and expertise.
Before knowing the types of cryptocurrencies, it's important to remember that cryptocurrencies are not real currencies. One of the more frequent misunderstandings is that Bitcoin and cryptocurrency relate to a new form of money. This analogy to currency is misleading. More people are beginning to realize that cryptocurrency is only one feature of distributed and consensus-driven algorithmic network (blockchain network) that can make the world more transparent, fairer, faster, secure, and cheaper.
The crypto industry essentially falls into four distinct quadrants:
- Store of Value
- Medium of Exchange
- Platform
- Decentralized Applications
1. Store of Value:
The first and foremost cryptocurrency that acts as a store of value is Bitcoin. Because of the storing nature of Bitcoin, it is considered a master of the crypto ecosystem. It is designed to offer long-term integrity and endurance. Although initially conceived as an alternative payment method, the cost and speed of transacting with Bitcoin mean it will never be used for this purpose. Many people see Bitcoin as a hedge against rising inflation levels and the US dollar's falling purchasing power. Bitcoin is sometimes called Digital Property.
- Finite Supply
- Deflationary nature
- Hedge
- Falling USD value
- Digital Property
- Yield
- Collateral
Let's consider an example to better comprehend the store of value. Suppose you have a building in Manhattan, and you rent it out to someone. The value of your land is up by 10 percent every year, which means if you keep renting it for a long time, you will get 10 percent profit every year without the additional tax costs or capital gains. Same is the case with Bitcoin.
2. Medium of Exchange:
The original purpose of Bitcoin is to use it as a medium of exchange. With cash falling in popularity and the low speed and high cost of sending money abroad, the time is right for a new form of currency and exchange. This frictionless, decentralized, faster, and cheaper transaction method will inevitably rise in popularity and appeal to increasing people worldwide.
- Unpopular cash
- Broad use case
- Frictionless
- Decentralized
- Faster
- Cheaper
- Critical Mass
8 billion people require a currency: the currency serves as a medium of exchange, while digital property serves as a store of value. Suppose you want a decentralized high-speed means of exchange that allows you to send $50 million from Spain to the United States on a Saturday afternoon without using the Fed wire or the banking system. Here is when cryptocurrency will come into play, being a faster and cheaper medium of exchange.
3. Platform:
The third use case for blockchain and cryptocurrency is platforms like Ethereum. Ethereum is a digital platform on which developers may build applications such as a decentralized exchange or an insurance business. They aim to promote NFTs and decentralized apps; however, when you buy ETH, you purchase an asset token: a digital asset that gives you a stake in a digital platform.
These networks allow the user to build decentralized applications on top of them and will therefore be extremely valuable in the years to come. An investor in a decentralized network has a say in the governance while earning a living from applications that want to build on top of the network.
- Infrastructure
- Digital real estate
- Governance rights
- Share in revenue
4. Decentralized Applications:
Finally, decentralized networks offer unique and tailored infrastructure that attract individual software developers. With decentralized networks and applications come massive cost savings and increased efficiency. When the general public realizes the vast benefits of crypto, together with supportive and precise regulation, it will only be a matter of time before we witness an unstoppable and exponential rise in their use and value.
- Tailored software apps
- Massive cost savings
- Increased efficiency
- Need for regulation
- Inevitable widespread use
Regardless of the COVID pandemic and the entirety of the financial disorder that everybody encountered in the year 2020, the crypto run has outperformed all assumptions, and the cryptographic money is moving toward its unsurpassed heights. There has never been a better time to get into crypto. As the levels of debt across the world increase in the wake of the global pandemic, more and more countries are witnessing increasing inflation levels.
Food For Thought:
What would you choose if you had 1 Million Dollars to invest right now? The most straightforward analogy to use is the property investment market.
The first option is to invest in Digital Property, i.e., Bitcoin. The ownership of this store of value will produce yield over time and act as collateral against which borrowing can be made. In real life, this would be like buying land.
The second option would be to invest in a Medium of Exchange such as XRP or XLM or a stablecoin like USDC or USDT, which are pegged to the Dollar. This would be like owning a US dollar or Pound Sterling.
The third option would be to invest in the decentralized infrastructure, for example, Ethereum or Hedera Hashgraph. Owning a part of this network would be like owning physical buildings from which shops and offices can rent space from you.
The final investment opportunity would be decentralized applications or dApps for short. Investing at this level would be like investing in shops, offices, or restaurants which provide a service to the end consumer. Some examples of dApps include CryptoKitties, PokerKing, and SelfKey.
The stage is set for the fourth industrial revolution and the power returning to the consumer.
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https://www.ciobulletin.com/cryptocurrency/paypal-allows-uk-citizens-to-trade-and-hold-crypto-assetsThe customers will be able to buy bitcoin, ethereum, litecoin, and bitcoin cash directly through their PayPal wallets.After making its crypto trading services available in the US, PayPal has now launched its crypto services in the UK.
The UK citizens will now be able to buy, sell and hold crypto assets in PayPal.
It means they don’t require any exchange in order to buy crypto assets.
For now, the customers will be able to buy/sell bitcoin, ethereum, litecoin, and bitcoin cash through their PayPal wallets.
PayPal first launched its crypto services in the United States early this year.
It also allows customers to use their digital coin holdings to shop at the millions of merchants on its network.
Which means, they are not directed by a money related organization or the legislature.
In that way, unlike a conventional financial balance, you do not need to be bothered with an insignificant rundown for administrative work, for example, just need an ID for you to set up what is known as a Bitcoin wallet.
The Bitcoin wallet is an account you will use to get access to your Bitcoins and to send Bitcoins to different people.
How Bitcoin Work As Anonymous Payment Processor
You can complete 3 things with Bitcoins, you can go for a buy, to send cash namelessly to somebody or use it as a speculation.
The number of merchants who are accepting Bitcoins as for the payment is increasing day by day.
