Here’s What You Should Know About Cryptocurrency

By Jinhuang Saw | Education

Feb 04

Here’s What You Should Know About Cryptocurrency

Recent years, there’s no doubt that you’ve been hearing the word ‘cryptocurrency’ or ‘crypto’. You might be wondering what are those, how do they work, how can I make money from them? Well, let’s have a deeper look in this issue of SR Newsletter! 

What is Cryptocurrency?

Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the good or service that the company provides.

Cryptocurrencies work using a technology called blockchain. Blockchain is a decentralized technology spread across many computers that manages and records transactions. One of the appeals from this technology is its security.

How many cryptocurrencies are there? What are they worth?

According to CoinMarketCap.com, a market research website, more than 6,700 different cryptocurrencies are traded publicly. Some of the popular names including Bitcoin, Ethereum, Tether, Litecoin and XRP.

As cryptocurrencies continue to grow rapidly, the total value of all cryptocurrencies on Jan. 27, 2021, was more than $897.3 billion, according to CoinMarketCap, and the total value of all bitcoins, the most popular digital currency, was pegged at about $563.8 billion.

Why are cryptocurrencies gaining popularity? 

Cryptocurrencies appeal to people for a variety of reasons. Here are some of the most popular:

  • People see cryptocurrencies such as Bitcoin as the currency of the future and are racing to buy them now, presumably before they become more valuable

  • Cryptocurrency removes central banks from managing the money supply, since over time these banks tend to reduce the value of money via inflation

  • The technology behind cryptocurrencies, the blockchain, is attracting because it’s a decentralized processing and recording system. This can be more secure than traditional payment systems

  • Some speculators like cryptocurrencies because they’re going up in value and have no interest in the currencies’ long-term acceptance as a way to move money

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