Technological advancements made global trading easy and fast. Banks and the central financial institutions opted the best available technology in order to ensure customer satisfaction and enhance the security of financial transactions. Central agencies made the best use of the internet in order to establish web and mobile applications for instant and anywhere banking.
However, central agencies are in control of the federal government and the foreign and trade policies of the government depreciate the value of the currency. Many nations until the date face the problem of inflation due to debts and overprinting of the currency. The concept of the cryptocurrency emerged from the revolutionary minds with an agenda to establish a stable and decentralized digital currency.
Basis Of Cryptocurrencies
The word bitcoin is more familiar than the cryptocurrency due to the financial wave in 2013 when this cryptocurrency recorded a sky-high monetary value of $11500. In 2009, the concept of the cryptocurrency was established with the creation of the Bitcoin. The agenda of the revolutionaries was to establish a decentralized currency accepted globally and free from inflation.
The programmers and the tech-giants in order to establish a system that records the transaction details and avoid the risk of overproduction made efforts. The concept of the blockchain was established that laid the foundation of the cryptocurrencies. The computers became the mining infrastructure that used the cryptographic techniques in order to mine cryptocurrencies. This possibility ended much earlier and now mining at home is not feasible.
Private companies established at remote locations mine cryptocurrencies for the global users with the help of the required infrastructure. The user needs to pay the signing amount to the mining companies and in return, the companies will provide a mining plan with desired specifications. Many alternatives to the bitcoins are available and efforts are made to enhance the security of cryptocurrencies.
Failure Of Bitcoin
A few years back biggest bitcoin exchange went offline, stealing 850000 bitcoins worth millions of US dollars. The value of this cryptocurrency decreased to half. So many competitors invaded the cryptocurrency market and the number of fraud cases and online theft increased. Bitcoin turned into speculative tokens instead of currency. So many nations banned cryptocurrencies, which turned the concept into useless tokens with the only high exchange rate.
Efforts Of Facebook And Telegram
Within a span of a few months, the biggest tech giants of the world, Facebook and Telegram will launch their digital currencies. The concept of the digital currency, based on the blockchain technology will counter the mistakes done by the current cryptocurrencies. Yes, the digital currency under construction is based on the concept of decentralized currency. The users of the messaging apps to send money to their contacts will use the digital currency.
Difference In Approach
Facebook and Telegram are working to build cryptocurrencies for the users of their messaging apps. Both the tech giants funded billions of dollars and associated with the world leader of cryptocurrency and the central currencies like PayPal to establish the digital currency. They aim to target the remote locations where the banking services are still not available or are scarcely available.
The biggest problem with the existing cryptocurrencies is lack of trust. They were and are vulnerable to online theft and fraud. People lost millions of dollars and the countries banned cryptocurrencies in order to improve the economic condition of their nation. However, cryptocurrencies under construction by Facebook and Telegram share trust as the foundation of the establishment.
The former CEO of the central financial institutions like PayPal and the excellent engineers constitute the team of Facebook and Telegram. The technology of the blockchain is used but the security is not compromised. With billions of users and positive image in the world, the tech giants will create the acceptance of their cryptocurrencies easily.
Bitcoin and the other cryptocurrencies are very expensive and are useless. They only possess a high exchange rate but you can hardly use them. The tech giants Facebook and Telegram considered this fact carefully. They are working to establish a useful digital currency for millions of their users in order to send money to their contacts and facilitate payment of recurring expenses.
Existing cryptocurrencies are very unstable. They lose and gain monetary value unexpectedly and cause great financial instability. Facebook, Telegram, and other tech giants are working on a stable digital currency. The current users of the cryptocurrencies will not be happy with this news. However, a stable cryptocurrency is the need of the hour. Companies will enable the exchange of their cryptocurrencies in most of the currencies including Dollars, Euro, and Pound. This will make the cryptocurrency more stable.
Facebook and Telegram are using blockchain technology to establish their cryptocurrencies. Their projects are nearly complete and efforts are made to launch the digital currencies this year. All the mistakes done by the bitcoin and the other cryptocurrencies are kept in mind in order to counter them. The tech giants that will revolutionize the concept of central banking will launch secured, stable, and useful cryptocurrencies. With billions of global customers, experts are already reciting the success story of the digital currencies under development by these tech giants.