The advent of cryptocurrency took the financial systems and structures by a storm, providing users with a virtual, decentered currency. Unlike fiat currency which is governed by national sovereignty and central authorities, cryptocurrencies are run on the framework of blockchain technology – a veritable fraud proof distributed ledger.
The most popular of all is Bitcoin which was created in 2009. But, within a short span of time many like its counterparts Ethereum, Litecoin, Ripple, etc. were developed. Cryptocurrencies can be utilized as an investment vehicle, for sending and receiving funds, as well as for smart contracts on distributed networks.
Among the characteristics of the salient features, the large returns of cryptocurrencies on investment stand out, only that this comes with the volatility and the associated risks. Such great interest from investors brings about many financial risks as prices can change wildly even in a narrow time frame.
Cryptocurrencies do not just provide new investment avenues to the people but also are changing different industries such as the banking sector & e-commerce, and even the field of arts by providing new services like DeFi and NFTs. However, the growing concern and issues over regulations of cryptocurrencies still linger, but more businesses and institutions across the globe are integrating them into their operations indicating their permanence.
