Cryptocurrency in the simplest of terms digital money. This means that it has no physical form and finds its home and usage via technology, mainly the internet. In more complex terminology crypto refers to decentralised money that is based on blockchain technology.
Different types of popular cryptocurrencies include Bitcoin, Ethereum, and DogeCoin for all Elon Musk and meme lovers. There are currently well over 5000 different cryptocurrencies in circulation online.
What is Crypto Used For?
Cryptocurrency is a type of digital money that is encrypted and decentralised. Unlike conventional forms of currency, there is very little worldwide regulation of these online currencies, meaning they can be invested and used to buy all manner of online products. Vendors obviously need to stipulate whether or not they accept crypto as a form of payment.
A person can use crypto for the simplest of purchases as well. Goods or services can be paid for via cryptocurrency in the online space. However, as of right now much of the crypto market is used by major resource hauling companies to buy precious metals such as gold, silver, and copper for example.
The Era of Crypto
The past 5 years have been huge for the cryptocurrency industry with 2020/2021 looking like the pivotal years in what has been a major shift in finance and money industries worldwide. Common words that all relate to cryptocurrency and it’s functioning include the Metaverse, NFT’s, casino crypto currency, and Luno to name a few.
So, what are some of the innovations that crypto will facilitate in the near future?
Virtual real estate is gaining real momentum in the crypto space with many people feeling like when the Metaverse is up and running in a stable format, with lots of people registered to the idea, virtual real estate will become the norm.
Virtual real estate is pretty much exactly what it sounds like. Virtual land, houses, apartments, and buildings can all be purchased via cryptocurrencies in the online space.
These occur on the blockchain via decentralised sandboxes where people can throw on a VR headset and spend time on the virtual properties, interacting with other people from all around the world.
Another popular innovation brought about via cryptocurrencies real life purchases. A lot of people are now realising the true potential that lies in sorting wealth in an online, unregulated type of bank.
The possibilities are truly endless and Elon Musk, owner of Tesla, the Boring Company, and other billion-dollar corporations agrees. The South African-born mogul has now authorised purchases of his electric car via Bitcoin, understanding that these types of payments will become commonplace in the future.
NFT’s have also been rising in popularity in recent times. NFT stands for non-fungible token. An artist can attach an NFT to this or her artwork for example and when someone buys the NFT they hold a unique token (like a deed) which proves ownership over that which they bought.
The Bottom Line
Cryptocurrencies are here to stay so it’s better to embrace and become knowledgeable about the future and how finance will look in 10-20 years’ time.