Can crypto really be the future of money? The response to this question hinges on the total consensus on many important decisions which range from ease of use to safety and regulations. Let us examine each side of this (electronic) coin and also compare and contrast conventional fiat money with cryptocurrency. The initial and most crucial component is hope.
It’s imperative that people trust the currency they’re using. What provides the dollar it’s worth? Is it gold? Then what exactly is it gives the dollar (or another fiat money) worth? Some nations’ money is considered more secure than others. Finally, it is people’s hope that the issuing authorities of the cash stand behind it and basically ensures its “value”. You can get more info about blockchain consulting services at https://applicature.com/services/consulting/
How does trust work with Bitcoin since it’s decentralized meaning there isn’t a governing body that issues the coins? Bitcoin sits around the blockchain that’s essentially an internet accounting ledger that enables the entire world to see each and every trade.
All these transactions are confirmed by miners (individuals operating computers on a peer-to-peer system) to reduce fraud and ensure there is not any double-spending.
In exchange for the services of keeping the integrity of their blockchain, the miners get a payment for every trade they confirm. As there is an infinite number of miners attempting to earn money everyone checks each other’s function for mistakes. This evidence of work procedure is the reason the blockchain hasn’t been hacked. Basically, this hope is what provides Bitcoin value.