The financial system in our society has changed, ever since mankind started markets and trading with each other, creating the need for the financial system.
In today’s article we are going to talk about the financial systems of the world, and in particular, one system, which is growing very fast, the cryptocurrency system.
We didn’t always have the paper money we use today, and as we make technological progress, the financial currency systems, of the world has been changing, to a more digitalized form of currency.
Ordinary people and traditional investment firms are paying more attention to the area of cryptocurrencies, due to the recent surge, in value of cryptocurrencies.
In March of 2017 the market cap of cryptocurrencies, was less than $30 billion; however, it has grown to over $100 billion in June of 2017.
Whether you believe it or not, this is a very fast growing area in the markets, and it will change our world, tremendously.
Not to mention that this is just the beginning of the cryptocurrency financial system, because it was not too long ago, that this type of currency entered the world, of humans.
Similar to stocks, bonds, mutual funds, and government backed-currencies; cryptocurrencies are quickly becoming a new global market for assets.
Although many people don’t understand the importance of cryptocurrencies, which have become a global phenomenon, many banks, governments and many companies are aware of how important, the cryptocurrency financial system really is.
In order for you to understand how cryptocurrencies work, you’ll have to have a basic understanding of databases; cryptocurrencies are nothing but entries on a database, which can be changed, only when certain conditions are made.
The cryptocurrency financial system, had its humble beginnings in the 90’s, due to the many failed attempts, which individuals, who believed in this type of technology, made.
However, it was not until the Bitcoin, the first and most popular cryptocurrency, came into the market, that cryptocurrencies received a lot of respect and attention from the public.
We are seeing our society, turn into a cashless society, right before our eyes, and there is nothing we are going to be able to do to stop it.
Cryptography is used by the digital or virtual currency we all know as cryptocurrencies, for security purposes.
The cryptography security feature, makes cryptocurrencies very difficult to counterfeit, because cryptography, is a defining feature of cryptocurrencies and it’s most endearing allure, without a doubt.
The cryptocurrency financial system is, theoretically immune to government interference or manipulation, because cryptography in its organic nature is not issued by any central authority banks.
The one problem, which exist with cryptocurrencies, is that if there is a computer crash, and there are no backup computers, then the whole digital currency system, would be wiped out.
The world, wouldn’t be able to come back from this, and give every citizen, what is rightfully theirs, because there would have been too many numbers to put together.
Imagine if the dollar crashed, the world, wouldn’t be the same after it, and the people would go crazy for days before there is order again.
Thank you, for reading this article!!!