Many people know little about cryptocurrencies, and don’t know why them have value. Then, why cryptocurrency have value? Can them used for exchange as fiat? Why them get widely support within only two decades?
No matter in which country, bank is a huge financial body which consumes many social resources, such as human resource, land resource, electricity, equipment, transaction fee, etc.
However, cryptocurrencies requires only electricity and hashrate, greatly saved costs and resources. Bitcoin (BTC) has been blamed for its high electricity consumption since its appearance, however, BTC is much more energy-saving than any bank. Not to mention the cryptocurrencies based on PoC consensus, hard drive mining consumes lower energy, less resource, and more energy efficient.
The existing financial system is operated by bank as the main body and supported by the credibility of the state. However, many citizens no longer believe in the credibility of banks and countries, when the economic downturn, fierce trade competition, and the constant depreciation of the currency. Bitcoin has emerged as a result.
In order to avoid currency depreciation, Satoshi Nakamoto created Bitcoin and wrote all the monetary rules into the code. Bitcoin is limited in circulation. It is not controlled by human will, and is supervised by all Bitcoin users. All cryptocurrencies issued after Bitcoin also has this feature.
Therefore, compared with banks, cryptocurrency is more decentralized and more secure. As a result, the blockchain has had a huge impact on the original financial system and is considered a new type of financial system. The cryptocurrency under the PoC consensus uses hard disk mining, the entry barrier is greatly lower, and it is more decentralized, so that everyone can mine.
In the past, cryptocurrency was often used in black market transactions to purchase illegal items because of its high privacy. However, cryptocurrency is now actually applied in many aspects of life. In many countries, large companies have begun to accept cryptocurrency as a payment method. For example, Brazilian payment provider Cielo said on August 31, 2019 that it accepts Bitcoin as a payment method. Starbucks partnership with Microsoft allows customers to pay for Frappuccinos with bitcoin, more than 500 stores in Slovenia and Croatia support cryptocurrency payments. Cryptocurrency has successfully implemented the functions of payment means and becomes a currency that can be traded.
Cryptocurrency uses distributed ledger, which means that each user has a ledger to record each broadcast transaction, and cannot be tampered. Therefore, cryptocurrency can be actually applied to charity, and enthusiastic donors can look at their ledger to check the flow of funds and put the money into the field. Cryptocurrency makes charity truly transparent.
This article simply lists the intrinsic value of cryptocurrency. In fact, the value of cryptocurrency for development is far more than that. I believe that the future of cryptocurrency will have unlimited possibilities.