Cryptocurrency in layman terms can be described as a virtual currency that is not controlled by a centralized system. To further elaborate, the crypto in cryptocurrency comes from the word cryptography, which was a practice used during second world war to communicate securely with the use of hard to crack codes that represent critical information. One of the most popular cryptocurrencies is bitcoin which is based on blockchain technology and many other cryptocurrencies are based on the same principle.
Resistance is often the first reaction of masses towards new technology and you will be surprised to learn that electricity, automobiles, and the internet were initially made fun of. Whether it is electrification being called a fad over gas-powered lighting and heating solutions, automobile use disregarded as dangerous over the use of horses, or the scare that internet will be used by criminals, the prime reason for this behavior is the feeling of comfort with the existing system.
There is a lot of confusion around cryptocurrency as there is a lot of skepticism around it. Most people do not understand how it functions and hence they oppose it. Cryptocurrencies are also being blocked by certain countries and centralized banks as they are impossible to monitor and control. Since the transfer of funds can be made anonymously, its use for illegal transactions is seen as a threat.
The positive uses and prospects for the future that cryptocurrency holds outrun the fear and skepticism around it. Value of 1 Bitcoin was less than a cent when it started in the year 2008 and 2009 when the first Bitcoin block appeared. Its value peaked at a little less than $20,000 in December 2015 and 1 Bitcoin is currently valued at approximately $10,000. Want to learn more about cryptocurrency, Bitcoin, and stats on its global acceptance? Check out this infographic from Total Processing to learn about other cryptocurrencies such as Litecoin, Ethereum, and a new one which is yet to be announced from the house of Facebook.