So, today our topic of discussion is the Cryptocurrencies
Introduction of Cryptocurrency
As we all are well awared about the progress and the development of digital world. All of the basic needs of men are developing into the digital an virtual world. So, the same is the case with the currencies. The fiat currencies simply named as the traditional currencies like Dollars, Ponds, Euros and Rupees are now been coverted and actually developed into the digital and virtual currencies known as the Cryptocurrencies or the Digital Currency. In the traditional finance system of the world, there were the pieces of paper or the coins of some metal which are of different worths but in this modern and digital era all of these things have been converted into the digital assets like Bitcoin, Ethreum, Dogecoin, Binance Coin, etc.
What is the fundamental difference between Cryptocurrency and the conventional financial system?
As Conventional Finance syatem and the cryptocurrencies are both exactly different this so know we will discuss some of the differences between these both terms .
| Conventional Finance Syatem | Cryptocurrencies |
|---|---|
| => This is the traditional finance system than the cryptocurrencies. | => This is the newly developing and more preferrable finance system. |
| => This system is centralized means to say that there is a central authority in this system. | => This is the decentralized finance system and there is no any central authority in this type of finance system. |
| => In this system, the funds and the transactions are under the control and eye of the central authority or the central controlling system like banks, government, semi-government etc. | => In cryptocurrencies, the funda and the transactions are not under the control of the any central authority but the users have complete control and free hand over their transactions and funds. |
| => The complete transaction details and the informations of the traders (seller or buyers) are stored and central authority have access to these sensitive informations. | => No on is able to trace the transactions made by different users. No one has the record of the informations or details of the transactions. |
| => In this system, making transaction is a little complex and time consuming process. | => The transactions of the cryptos is more easier and simpler as well as less time taking then the fiat ones. |
| => Transactions need a complete complicated process as there is a lot of time taking process of verifying of transactions. | => The transactions are just a little click away from the users and it is less time consuming process. |
| => There are proper sites and centres for the transactions of the funds. | => Users can make the transactions everywhere and anytime. |
| => There are some chances of the refund of the transactions if someone accidently make wrong transactions. | => There are no any chance for the sender to refund his transaction in the case of any accident or mistake. |
So these are some basic differences between the Conventional Finance Syatem and the Cryptocurrencies.
Conclusions
Cryptocurrencies are the digital assets that are used and work in the place of fiat currencies in the digital world. The cryptocurrencies are decentralized and the transactions made in the cryptocurrencies are transaparent and visible to all the users of the blockchains. Cryptocurrencies are legal and are being developing in some countries but on the other hand cryptocurrencies are also illegal and banned in some countries like Pakistan.