Cryptocurrency trading, as one of the sources of income, is experiencing a boom in popularity today. Having appeared on the Internet, this digital currency led to a real “chain reaction”: who among us has not heard about its capabilities? Almost the entire world community, most governments of states are concerned about the uncontrolled growth in the popularity of cryptocurrency.
In order to answer the main question of the article “is cryptocurrency a hype?”, it is necessary to understand the features of the principle of operation of this market.
The functioning of the digital currency system is based on blockchain technology - this is a way of storing information without placing it in one specific place, when the data is distributed among all participants in the system (on computers around the world), automatically updated and available at any time to any user; it is a continuous sequential chain of blocks of information that is usually stored and processed independently of each other on multiple computers.
Such a complex network is distributed among all participants, and all computers that mine coins become participants in the system. There is no main center to which everything would obey. Digital currencies are redistributed through the network, between market participants. This allows you to bypass banks, exclude influence from the state, avoid commissions for transfers and other expenses and difficulties. Users get complete freedom of action with cryptocurrencies, they have no obligations to the network, and their money cannot be frozen, so you can do whatever you want with them, whenever it is convenient.
Many consider cryptocurrencies to be just hype. This is one of the common myths among those who do not understand the topic of digital currencies. However, this is not quite true.
Firstly, the extraction of virtual currency (mining) hides serious costs: for the purchase and updating of professional equipment, for electricity, for maintaining servers. Typically, scammers do not understand technology, do not spend time developing an innovative service, maintaining a team of specialists. Their goal is to collect money and the abyss.
Secondly, all popular media, the Internet, and newspapers literally “shout” about cryptocurrency. In Japan, bitcoin was recognized as the official currency of the country (since April 1 this year), all developed countries have to think about cryptocurrency, adapting the law to it. As you can see, society is accepting cryptocurrency, at least it is beginning to recognize the prospects for the development of digital money. If all this was a hype, it would have already been revealed and this could not have received such distribution and such attention from the world community.
And yet, our conclusion, based on the material studied, is that the future of cryptocurrency is and today a number of trends have been outlined that guarantee its further development (discussion of the issue of legalization of cryptocurrency in the countries of the world its active exit from the online zone to offline, the constant growth of those interested in buying cryptocurrency, etc.). Like other technologies, cryptocurrency is forced to go through its development through problems, critical moods in society.