There’s no denying that the crypto discussion, especially Bitcoin, is everywhere. From the news we read, to Facebook feeds, to what we debate with our friends. This hot topic is yet to get even hotter.
But in order to really appreciate where cryptos are going we need to understand where they came from.
In the past it was hard to trust cryptos
Whilst Bitcoin is hot right now, cryptos have actually been around for a while. They first appeared during the tech boom of the 90s, and initially failed to catch on due to security and trust issues. A big reason for this was that early cryptos used a ‘Trusted Third Party’ approach. This meant that the company launching the cryptocurrency both checked and processed all transactions. You were trusting that one company to get it right, and if that company failed, your cryptos would become worthless.
Bitcoin, launched in 2009, was different as it’s a peer-to-peer electronic cash system. In simple terms – there is no central company doing the checking and processing. This means that everyone with a crypto ‘token’, like Bitcoin, keeps a copy of all transactions. So when you give your friend ‘Tomas’ a crypto, the network records that specific token and everyone is told of it having changed owners. You can’t therefore give your friend ‘Kurtis’ and ‘Jenny’ the same token. It’s transparent and more trustworthy.
In the early days, Bitcoin was the preferred way of buying and selling on the dark web, especially on the infamous Silk Road site as it was hidden from central government control. As often happens with these things, criminals see this as an innovative solution, but they did some good – they brought cryptos far wider attention.
Also a few early pioneering small businesses such as pizza restaurants and specialty shops accepted Bitcoins. They did this more for publicity.
Today beyond Bitcoin there are many other cryptos
What has really driven the popularity of Bitcoin and others, like Ethereum, Litecoin and XRP (all available via TransferGo) is the huge rise in value. This has been driven by the rising interest in cryptos, and the more the world talks about cryptos the more it continues to rise. It’s a case of supply of demand.
Another reason is the younger generation, our ‘millennials’. The idea of an online currency, not backed by a central government, is easier for them to grasp and use. If you were born after the 90s you use the internet and technology in almost every aspect of daily life. Switching to an online currency is easier for them to do. They see them just like tokens in an amusement park, or purchased credits used in an app or mobile game.
Today anyone can use cryptos, although they are not accepted everywhere, and supply is limited. Over time more businesses are likely to accept cryptos.
Cryptos will continue to shape our future
Recently the Swiss government started to accept of Bitcoin for tax payment and Venezuela has introduced a digital currency linked to their petroleum industry. Both are excellent indicators of the strength and viability of digital currencies.
The rise of finance technology companies, like TransferGo, will continue to lead the way in challenging traditional ways of banking. It is likely that established banks will start to also change and adopt new technologies. The benefit to all will be better services and lower costs.
Download the TransferGo app
Soon TransferGo customers will be able to buy or sell the likes of Bitcoin, Bitcoin Cash, Ethereum, XRP and Litecoin. We’re sure this new service will be in high demand. Make sure you’re one of the first to know when it is here. Simply download our iOS app to register your interest and see the live prices feature now.