Cryptocurrency has taken the world by storm since it began in 2008 and has grown as an asset class to over $1 trillion dollars. Despite the large growth in the ecosystem, Viridi believes that the future for cryptocurrency will continue to look bright.
Cryptocurrency is a digital peer-to-peer currency that is secured by cryptography techniques. “Crypto” refers to various encryption algorithms and techniques that help secure a given token by preventing counterfeit versions from being created and by virtually eliminating the risk of double-spending.
Cryptocurrency provides many benefits such as being secure, instant, global, and transparent. The risks associated with cryptocurrency include the extreme volatility of the asset, the ability for cryptocurrency to potentially be hacked, and the possibility that trading could be halted by exchanges. Cryptocurrency has no protection as it is not backed by any central authority, bank, or government. Cryptocurrency is never unavailable or offline, it can be accessed from any device, and it does not require any central authority.
For example, someone can send a bitcoin to someone else at any time, without anyone else’s approval and for whatever amount they want. This transaction is not only globalized, but it is stored on the blockchain and recorded in a transparent and decentralized way.
The crypto space contains many different projects created by various teams across the globe. As a result, people who create new projects may also choose to create a new cryptocurrency as well. Similar to how companies may issue shares on the stock market, cryptocurrency companies may choose to issue their own cryptocurrency.