Most of the people drawn towards the digital adaptation technology are more or less familiar with cryptocurrencies and how they are used. In one time or another, we may have encountered the term in ads that may have appeared in our emails and social media accounts.
Cryptocurrencies are used the same way as normal currencies like the dollar, the pound, the peso, etc. However, they are not to be treated the same way as actual money we use in our daily transactions as they are used for digital transactions. No, they do not literally occur in that certain aspect as they consummate a transaction by the process of cryptography. Put it simply, they are currencies that are used to secure digital information in exchange for digital coins, popularly known as Alt coins equivalent to a certain amount of actual money.
Are they regulated? Cryptocurrencies may be acceptable in some countries, but they are not regulated. They occur in virtual environments, and therefore, those who use it need not worry about their governments meddling with their money. This is why most people find them pretty much convenient as any information regarding their investment in Alt coins is kept private. And to think they need not even bother about fees for their safe keeping!
Neither could they be affected by the actions of governments; why is why they are considered as a good hedge for inflation like gold; or even better. But unlike actual currencies, digital currencies can be consummated and recorded in your books in real-time as it is always facilitated by digital technology.
Similar to fiat money their value also fluctuates but they differ in a manner with their number is limited. Such as in the case of bitcoins, the first and most popular cryptocurrency of today whose number is only pegged at 24 million. Unlike fiat money wherein governments can increase their number in circulation, cryptocurrencies are not preyed to inflation. In other words, with their limited supply, there is no way for the value to rise or fall.
Governments will eventually notice the loopholes created by cryptocurrencies in their financial systems. No doubt, Altcoins have now captured everyone else’s attention, and for one who has the capacity to acquire they can only use their proper discretion; either to love them or leave them.