What’s in a coin? Or not…
For as long as humanity existed and history can report, people wanted something belonging to someone else. We just seemed to have been born with this desire to covet things. An urge to possess, progress, plunder, and procure. Some call it the evolution of the human race. That’s a discussion for another time. Since we covet so profusely, we had to find a way to attribute value to things to exchange them for something more desirable. Because coveting is a strange game. The moment you have what you coveted so vehemently, you want something else. And so it goes.
The birth of bartering
Thousands of years ago, we figured out a way to exchange goods and services. We placed a value on something and exchanged it for something similar. According to PBS, it’s called bartering and was initially done with cowrie shells and beads.
Jump to modern times. We’ve developed physical money such as Euros and other currencies. It’s government-controlled and commonly known as fiat money (for no rhyme or reason.)
All hail the crypto
As humans evolve, move around and diversify, so do their needs. Today we need a quicker, more secure and more effective way to move money around. Enter cryptocurrency. It’s built on the blockchain, which is quite ironic if you consider blockchain was created to eliminate links in the extensive transactional chains made and run by banks.
What is cryptocurrency? According to the Oxford Dictionary, “It is a digital currency in which transactions are verified and records maintained by a decentralised system rather than a centralised authority” (fiat).” The decentralised system, in this case, is blockchain. It is transparent and open for anybody to investigate.
According to CoinGecko, the crypto market cap is €1,069 trillion and 70 million people use blockchain wallets worldwide.
Many individuals find cryptocurrency frightening. Fiat currencies are important as they are often converted into cryptocurrencies for more people to participate in this new financial ecosystem. Why? You might ask. Because crypto allows peers to transact with one another directly, eliminating intermediaries like brokers, agents, lawyers etc.
Is it safe?
The other charming characteristic of money is that one never quite knows where it’s safe. Keep it under your bed or on your body, and somebody might attack you for it. Put it in a bank, and the bank might go bust (not normally, but we all know what happened during the subprime crisis in the US between 2007 and 2010.) Invest it in the stock market, and a Black Swan comes along.
So, holding on to money seems to be just as difficult as making it. Crypto is meant to change that. When you convert your fiat into crypto, it is recorded publicly on a distributed ledger, aka blockchain. Blockchain is transparent and verifiable. Because the transaction history is so accessible, it prevents fraud, and any transgressions can be detected easily. This way of working encourages trust between business partners because they are both open books, so to speak. But, there is always a caveat, ensure you use a trustworthy merchant and exchange partner when you convert fiat into crypto. Look at this list published by BitDegree to find one tailored to your needs.
The biggest threat to crypto safety happens when humans get involved. People get hold of each other’s crypto keys, hack networks and so forth. Exchanges use two-factor and biometric authentication and other measures like complicated pins and passwords to keep cryptocurrency safe.
Everyday transactions with crypto
Crypto has grown from an infant to a toddler overnight, entering the ‘mainstream’ of payment methods. You can withdraw money from your crypto wallet via an ATM, and many acquirers like Truevo Payments offer fiat-to-crypto as a form of exchange. It means you can exchange your currency for crypto effortlessly wherever you are in the world. It makes cross-border transactions a breeze and business a pleasure.
If global trade is your dream and Europe your target, drop Truevo a line. We make money flow so that your empire can grow. We deliver payments fast and securely. It just works.
Disclaimer: This content has been written for informational purposes only. It should not be construed as legal or business advice. Do not make and refrain from making any serious or legal decisions based on the content of this post without seeking professional advice.
