Cryptocurrency is a virtual currency that is used as a mode of exchange and is secured with cryptography, leaving negligible possibilities of forging. Unless some specified conditions are fulfilled, changing an entry becomes difficult. It is basically generating of codes that allow confidentiality of information. Cryptography converts the data into an unreadable format for someone who is not an authorized user.
By creating Bitcoin, cryptocurrency made a huge leap from just an academic idea to being real. Bitcoin captured a remarkable attention from the media and investors, exhibiting a market value of $2 billion during its peak. However, a plunge of 50% in a short span of time rose debates, questioning the future of cryptocurrencies and making people wonder if cryptocurrencies are a passing trend that will go away soon?
Future of Cryptocurrencies – Cryptocurrencies face certain limitations, such as hacking of a virtual vault, computer crash resulting in loss of digital fortune etc. These may be resolved or taken care of, only as time passes, with the advancement of technology. However, the popularity of the cryptocurrencies is more likely to attract regulations and government inspection.
Though there are several merchants embracing cryptocurrencies with a doubt, yet they are still a minority because of the lack of acceptance among the consumers. Having said that, people might be reluctant also because of the complexity of such digital currencies when compared to the traditional one that we all are accustomed to using.
If a cryptocurrency need to make place in the financial system, there is a wide range of criteria to fit into. Along with being easy to understand for the users, it also needs to be complex enough to avoid being hacked, losing data and many of such requirements.
Cryptocurrency is still in its beginning phase in terms of reliability and has already covered a huge audience, providing us with methods that will help improve the current systems by using the principal Blockchain functionality. But the question remains; With the witnessed development over the years, what can we expect from the cryptocurrency while moving forward with the year 2019?