Why Do We Hear About Cryptocurrences?

Cryptocurrency, like any other virtual commodity such as gold and silver, is a kind of asset that has a use in the business world. In most cases, people will buy cryptos to store value in their personal computers. A lot of people nowadays are using it as a kind of savings account due to the fact that you do not need to keep a physical gold or silver backup in your computer. All that you need is a certain amount of virtual currency that is retrievable in any given moment.

The main function of a Cryptocurrency is to act as a bridge between two or more networks. Therefore, in order for you to transact or buy from another person on the Internet, all that you need is a website or application that works with one or more virtual currencies. You can also use the internet for buying and selling between different brokers, online shops, and online stores. In this case, the ledger would serve as the “book” of the transactions that are taking place and is kept in a form of an online database.

This is why we cannot really say that Cryptocurrencies are money. No matter how much people may try to convince you of this, it is just simply another word for computer software. Just like software, the most important characteristic of Cryptocurrences is the ability to process massive volumes of transactions at extremely high speeds. In the future, you will still see cryptocurrencies being used by most if not all commercial institutions as a means of preserving their value and their money.