Cryptocurrency

Cryptocurrency: The new form of currency
Online currency has been widely used in the past decade as a new way of transaction. However, the term “cryptocurrency” is not as recognizable as Bitcoin when dicussed; it is not yet used as a general term. Sherman (2014) refers to the term cryptocurrency as “any currency type that uses cryptography to ensure the verifiability and in most cases, anonymity of all transactions.” In recent years more and more people have considered cryptocurrency as a new and modern way of trading, purchasing and/or selling items on the internet. This essay will discuss this new form of currency and its role in the business and finance world.
Bitcoin is the first form of cryptocurrency. In October 2008, Satoshi Nakamoto published a paper called “Bitcoin: A Peer-to-Peer Electronic Cash System.” This paper presented a groundbreaking idea. As the New York Times (n.a, 2013) stated, “This idea represents a breakthrough in using software code to authenticate and protect transactions without resorting to a centralized bank or government treasury.” Since then, many theories regarding Satoshi Nakamoto’s reason for proposing this new form of currency came about. One of the most feasible theories is that it was a response to the global economic and financial crisis during that time. It is an alternative to using banks and financial institutions, and its modernity means that the government is still finding ways to oversee it. Nakamoto has achieved his goal, which was to create a currency that was practically ‘invisible’. No physical form means it is not easily manipulated, and any financial service fees are minimal. (Bajpai, 2014)
However, people still wonder, is this really money? Many regard cryptoccurency as an unreliable form of exchange and of saving money. Its wild price fluctuation hinders people from jumping onto this new trend. Since it’s release, Bitcoin has valued from its lowest $0.00076 to its highest, $1,242. It’s current price is valued at $211 . It raises the question, is it worth investing on cryptocurrencies? Apart from Bitcoin, other online currencies are available on the market, such as Litecoin, Dogecoin, Peercoin, Primecoin, and many others, all of which have different values and can be earned through mining and online faucets. Historically, money must be a reliable medium of exchange. Through this definition, cryptocurrency is technically not money. It is not yet accepted by many banks and businesses, making it difficult for new investors to fully trust in it. Money must comply with certain long-held principles, and since cryptocurrencies were created to avoid banks and regulators, it will be a long time before it qualifies as real money.
In conclusion, cryptocurrencies has been an innovation in the business and finance world. However, its neverending price fluctuations has deemed it unreliable. Many of its current investors are starting to doubt its viability as a new form of currency, and its future in the global economy is still a big question mark.

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