In recent years cryptocurrency has been a trending term, yet some people don’t even know what it is. Some are even calling it a scam.
Well, over 100 years ago most African Communities practiced Barter Trade. This trade was a mode of exchange of goods and Services where goods were directly exchanged with other products and services. There was no medium of exchange such as money. This is how it worked you have Salt I have spears, so we exchange one product for the other, or swap. Then came money which was introduced as a form of exchange till now. Why am I stating this?; Times have changed so before you start fighting something know about it first then judge later. So what is a cryptocurrency? What is Blockchain? And Is blockchain bitcoin?
Cryptocurrency is a digitally based form of exchange; it is done securely using cryptographical functions to conduct financial transactions. In simple terms, it’s a virtual currency entirely out of government control. Imagine sending money, for instance, from Kenya to the U.S through the bank, it will take me almost three business days for you the person to receive. Imagine if you would on take a few seconds to send the money? When that is what cryptos have helped solve that because any amount is sent to the other person (P2P) without the bank. Now you know why banks are fighting it. Cryptocurrencies take advantage of blockchain technology to be credible and gain decentralization.
Blockchain is a chain of blocks. These blocks are a collection of digital data that is stored in the public database. It is an undestroyable digital ledger of economic transactions. The blockchain network does not have a central authority, and the information is open for everyone to see, hence there is a lot of transparency in the technology. The technology is said to be so complicated. Often time people call Blockchain interchangeably bitcoin.
Bitcoin is not blockchain; it is a cryptocurrency using blockchain technology. In other words, it is a virtual currency – digital currency since inception on 3rd January 2009 we have seen its value grow from 0$ to Now 10000$ plus, this value is expected to keep on rising. Bitcoin enhances Peer to Peer payments it does not know distance and time. Cryptocurrencies really came to solve a lot of challenges some of us have been encountering including transactions costs; Bitcoins have low transactions Costs. It is not the only cryptocurrency out there, there are several of them out there. The first time I began to deal with Bitcoin was around June 2014; I was doing online business, that required me to use bitcoins. The business was so sophisticated then, I would convert my money twice; Ksh to USD, then USD to BTC. Am glad I learned about Bitcoins that early. It helped me start another business 2017 of reselling the coins which yielded a lot of profits.
I believe the introduction of currencies as a solution to barter trade was fought hard by many people. I can imagine them saying “ You mean this ‘metals’ (coins)is worth three goats and two cows?” Lol. Anyway, we are using the currencies which means with time they embraced that technology. Watch out my next article as we get to know more in the world of technology. Kindly leave a comment or question below.