Why send cryptocurrency instead of cash? Why is cryptocurrency so unstable?
Why send cryptocurrency instead of cash? Why is cryptocurrency so unstable? Cryptocurrency is a digital currency designed to be used as a medium of exchange. It uses cryptography to protect and validate transactions, as well as to control the creation of new units of specific digital currencies. Many cryptocurrencies are based on blockchain technology, which is a distributed ledger enforced by distributed computer networks. Cryptocurrencies are different from legal currencies such as the US dollar or the pound, because no central authority issues them, which makes them unlikely to be affected by government intervention or manipulation.
Why send cryptocurrency instead of cash?
Because encryption is digital, sending encryption is as simple as sending email. Cryptocurrencies also do not have any physical boundaries like dollars, pesos or euros, so you can easily send cryptocurrencies to friends, family members or businessmen overseas just as you can send them to people sitting next to you. Finally, you can make cryptocurrencies more secure by sending them without sharing your personal or bank information. To send cryptocurrency, you need the recipient's wallet address. The wallet address is a long string of characters, similar to the bank account number, used to identify the whereabouts of the cryptocurrency.
Because the encrypted wallet addresses are very long, they are usually displayed as QR codes, which you can scan in the encrypted application.
Once you have the wallet address, you just need to open your encrypted wallet, enter the wallet address, and select the number of encrypted currencies you want to send. Sending cryptocurrency usually requires a small fee, which is called "gasoline fee", but the fee is usually much lower than other methods such as telegraphic transfer or Western Union remittance.
Some things to remember when sending cryptocurrencies:
Each type of cryptocurrency has its own address, so please ensure that Bitcoin is sent to the Bitcoin address and Ethereum is sent to the Ethereum address.
Once your transaction is verified and confirmed, the cryptocurrency will be displayed in the payee's account. This may take a few seconds to a few minutes.
If you are a Coinbase customer, you can also immediately send cryptocurrency to any email address in more than 100 countries for free. Just open your Coinbase application, select the cryptocurrency and amount, enter the recipient's email address, and click Send.
Sending cryptocurrencies is simple and affordable - whether your money is transferred from the other side of the room or from anywhere.
Why is cryptocurrency so unstable?
Due to the novelty of the industry, the cryptocurrency field has great volatility. Investors are seeking to experiment with their money to get rich quickly and find out how cryptocurrency prices change and whether they will affect them.
The number of people who use encrypted coins (i.e. utilities) and their purpose will affect their price. If more people use them to buy goods and services rather than just hold them, prices will rise.
The value of cryptocurrencies is also driven by scarcity. This implies a limited mechanism for cryptocurrencies. The Bitcoin protocol sets the maximum number of BTCs that can be mined to 21 million. Therefore, as more and more people enter the field of encryption, the scarcity of Bitcoin will inevitably increase, leading to its price rise. Some tokens also use destruction mechanisms to increase their value by destroying part of the supply.
Accounts with large cryptocurrencies may start to sell, leading to a sharp fall in prices. These accounts are called whales because they are important. If a group of people agree to sell encrypted assets, they can influence the market.
In general, the above details why cryptocurrencies should be sent instead of cash, and why cryptocurrencies are so unstable. I believe you will understand it after reading it. In short, cryptocurrency is a digital currency, which does not rely on the central bank or trusted third parties to verify transactions and create new currency units. Instead, it uses cryptography to confirm transactions on an open distributed ledger called a blockchain.