Currency has been an essential element of human living. It enables us to buy and sell something. In the past centuries, people use a barter system as a means of exchanging goods and services. Currency has gone through a lot of modifications in the past decades until the inception of what we now called cyber currency.
Definition of Cyber Currency
Cyber currency is simply a digital currency that is protected by cryptography or the use of encrypted messages or algorithms to shield information and secure transactions. Because they are virtual currencies, they don’t exist in paper bills. A popular example of cyber currency is Bitcoin.
Uses of Cyber Currency
Cyber currency is similar to mobile digital wallets that can be used for transactions such as purchasing products or services. It can also be utilized as an investment avenue.
People are shifting to cyber currencies for several reasons. Modern currency like paper monies, digital wallets, and credit cards or debit cards commonly experience technical issues, identity theft, and restricted money transfer.
Advantages of Cyber Currency
· The value of money is not reduced or deducted.
· It provides a more secure payment system.
· It can be a good investment hub, as the value may go up in the future.
· Verification of identity and funds takes seconds.
· It operates independently of a bank.
Disadvantages of Cyber Currency
· Hacking is a possible risk.
· The system is not governed by the government; thus, retrieval of lost coins is unlikely.
· Volatility and fluctuations of the market.
As of 2018, there are no less than 1,600 cyber currencies identified, and this is expected to increase in number in the upcoming years. Cyber currency seems to be another potential financial revolution that is not only used to purchase products or services but also a convenient platform for investment.