The ongoing apprehension towards ‘Libra’- Facebook’s own global digital currency has raised some very important concerns. While the government and financial organizations have blatantly criticized the idea of having a global currency that is not centralized, Mark Zuckerberg fights relentlessly for it. As per various news reports, Zuckerberg asks Congress to back them or China wins.
Libra seems to have ignited a debate that existed ever since the idea of cryptocurrency came into being and here are a few facts everyone should know about cryptocurrency so you aren’t missing out the world’s biggest digital transformation.
9 Facts About Cryptocurrency You Must Know
#1 You Can’t Lose Your Wallet
When dealing in cryptocurrency you hold a crypto wallet (digital wallet) that has public and private keys. You are provided with a private key to gain access to it and if you happen to lose your private key, the chances of getting it back are close to never.
Your digital funds will disappear into a huge crypto-void. There is very little chance of hacking because of the blockchain technology, so you are the only one responsible for losing your digital money.
A credit card/debit card loss can still be traced back or created again at the Bank by providing your identification proof, but with cryptocurrency, you need to be extremely careful.
#2 Beware of Cryptojacking
Cryptocurrency is a safe option for wallet safety but it is still exposed to scammers who use your computer or phone’s processing for the mining of cryptocurrency. They do this for their own benefit without your approval. This is called “Cryptojacking” where the scammers put malicious code in your device.
How do you know if your device is affected? Your phone or computer will become slow or your battery will discharge faster.
#3 Bitcoin Inventor Is Unknown
This is the most popular and surprising fact about the cryptocurrency world, the person or organization that created the ‘bitcoin’ is unknown. A lot of people have come ahead and claimed to be the ones who started it but none of them were credible sources.
People refer to the creator of bitcoins as Satoshi Nakamoto.
A popular belief is that it is an acronym for leading tech giants- Samsung- Toshiba-Nakamichi-Motorola.
#4 Cryptocurrency Value Is Extremely Volatile
Just like a normal share market, there are a lot of external factors that have a direct impact on the value of Crypto money. They are super volatile and really depend on your sense of trading. The value can swing dramatically which is sometimes in your favor and sometimes terribly against it. Its digital-only presence and risk factor is why people choose to steer away from it.
#5 China Is The Biggest Miner Of Cryptocurrency
Mining of cryptocurrency is the process of verifying various forms of transactions before they are put on the Blockchain’s distributed ledger. It is a lucrative business and China controls around 75% control over the mining network.
#6 Cryptocurrency Can’t Be Physically Banned
The most-talked about news of ‘banning’ cryptocurrency in India has a few genuine reasons like- central banks losing business and no government control due to decentralized control. However, despite the ban, it is ‘physically’ impossible to ban cryptocurrency because anyone can get a crypto wallet. There can be regulations but you can’t stop the cryptocurrency market.
Also Read: Evolving Magnitudes Of Blockchain Technology
#7 Countries That Have Banned Cryptocurrency
While we are on the subject, there are a few countries where you can’t enjoy cryptocurrency rights as they have been banned. Here’s the list:
#8 Cryptocurrency Is Great For Ecommerce
Internet connectivity is easily available in third world countries where opening a bank account might be difficult. Cryptocurrency could help eCommerce reach to diverse and more people if they provide digital currencies as a payment option. Most of the regular chores and shopping has moved to digital, cryptocurrency would only boost it further. Since cryptocurrency is decentralized, there isn’t a need for middlemen in transactions so eCommerce can enjoy higher autonomy.
#9 International Transactions Without Exchange
Your business does not have to deal with foreign exchange if they are using cryptocurrency as there are no borders. It is a digital economy that does not work with a centralized economy.
What Is The Position Of Cryptocurrency In India?
Still contemplating a proper regulation for cryptocurrency, India is ought to make its stand on cryptocurrency clearer soon. As per the Finance Minister Nirmala Sitharaman, red flags have already paved the way from other nations to India on the virtual currency front. The rationale for the ban is the possibility of terror funding and other illegal activities.
Related Article: RBI Has No Authority To Ban Cryptocurrencies: IAMAI
The country is planning to ban cryptocurrency through passing a bill- “Banning of Cryptocurrency and Regulations of Official Digital Currency Bill, 2019”. There is a jail term and penalty for those who continue to deal with virtual currency. The decision isn’t final yet but the stand has been made clear.
Do you agree with the government’s decision? Let us know in the comment section below or you can tweet to us @ExpComputer
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