Cryptocurrency: The Fintech Disruptor

  Blockchains, sidechains, mining - terminologies in the clandestine world of cryptocurrency keep piling up by minutes. Although it sounds unreasonable to introduce new financial terms in an already intricate world of finance, cryptocurrencies offer a much-needed solution to one of the biggest annoyances in today's money market - security of transaction in a digital world. Cryptocurrency is a defining and disruptive innovation in the fast-moving world of fin-tech, a pertinent response to the need for a secure medium of exchange in the days of virtual transaction. In a time when deals are merely digits and numbers, cryptocurrency proposes to do exactly that!

In the most rudimentary form of the term, cryptocurrency is a proof-of-concept for alternative virtual currency that promises secured, anonymous transactions through peer-to-peer online mesh networking. The misnomer is more of a property rather than actual currency. Unlike everyday money, cryptocurrency models operate without a central authority, as a decentralized digital mechanism. In a distributed cryptocurrency mechanism, the money is issued, managed and endorsed by the collective community peer network - the continuous activity of which is known as mining on a peer's machine. Successful miners receive coins too in appreciation of their time and resources utilized. Once used, the transaction information is broadcasted to a blockchain in the network under a public-key, preventing each coin from being spent twice from the same user. The blockchain can be thought of as the cashier's register. Coins are secured behind a password-protected digital wallet representing the user.

Supply of coins in the digital currency world is pre-decided, free of manipulation, by any individual, organizations, government entities and financial institutions. The cryptocurrency system is known for its speed, as transaction activities over the digital wallets can materialize funds in a matter of minutes, compared to the traditional banking system. It is also largely irreversible by design, further bolstering the idea of anonymity and eliminating any further chances of tracing the money back to its original owner. Unfortunately, the salient features - speed, security, and anonymity - have also made crypto-coins the mode of transaction for numerous illegal trades.

Just like the money market in the real world, currency rates fluctuate in the digital coin ecosystem. Owing to the finite amount of coins, as demand for currency increases, coins inflate in value. Bitcoin is the largest and most successful cryptocurrency so far, with a market cap of $15.3 Billion, capturing 37.6% of the market and currently priced at $8,997.31. Bitcoin hit the currency market in December, 2017 by being traded at $19,783.21 per coin, before facing the sudden plunge in 2018. The fall is partly due to rise of alternative digital coins such as Ethereum, NPCcoin, Ripple, EOS, Litecoin and MintChip.

Due to hard-coded limits on their supply, cryptocurrencies are considered to follow the same principles of economics as gold - price is determined by the limited supply and the fluctuations of demand. With the constant fluctuations in the exchange rates, their sustainability still remains to be seen. Consequently, the investment in virtual currencies is more speculation at the moment than an everyday money market.

In the wake of industrial revolution, this digital currency is an indispensable part of technological disruption. From the point of a casual observer, this rise may look exciting, threatening and mysterious all at once. While some economist remain skeptical, others see it as a lightning revolution of monetary industry. Conservatively, the digital coins are going to displace roughly quarter of national currencies in the developed countries by 2030. This has already created a new asset class alongside the traditional global economy and a new set of investment vehicle will come from cryptofinance in the next years. Recently, Bitcoin may have taken a dip to give spotlight to other cryptocurrencies. But this does not signal any crash of the cryptocurrency itself. While some financial advisors emphasis over governments' role in cracking down the clandestine world to regulate the central governance mechanism, others insist on continuing the current free-flow. The more popular cryptocurrencies are, the more scrutiny and regulation they attract - a common paradox that bedevils the digital note and erodes the primary objective of its existence https://smart-contract.com/. Either way, the lack of intermediaries and oversight is making it remarkably attractive to the investors and causing daily commerce to change drastically. Even the International Monetary Fund (IMF) fears that cryptocurrencies will displace central banks and international banking in the near future. After 2030, regular commerce will be dominated by crypto supply chain which will offer less friction and more economic value between technologically adept buyers and sellers.

If cryptocurrency aspires to become an essential part of the existing financial system, it will have to satisfy very divergent financial, regulatory and societal criteria. It will need to be hacker-proof, consumer friendly, and heavily safeguarded to offer its fundamental benefit to the mainstream monetary system. It should preserve user anonymity without being a channel of money laundering, tax evasion and internet fraud. As these are must-haves for the digital system, it will take few more years to comprehend whether cryptocurrency will be able to compete with the real world currency in full swing. While it is likely to happen, cryptocurrency's success (or lack thereof) of tackling the challenges will determine the fortune of the monetary system in the days ahead.

Delving into the much-talked-about and hard-coded clandestine world of the next monetary system - cryptocurrency. While the digital coin offers immersive prospect and benefit to the potential investors and traders; it is yet to face numerous challenges and devise response mechanism for the future world.

Enough, there has been so much hullabaloo about the boom created by the virtual currencies that the internet has been overloaded with information on how you could earn more money by investing in these currencies. But did you ever think how cool it would be if you could create your own cryptocurrency?

Never thought about it, right? It's time to think because in this post we are going to provide you a four-step guide on creating your own cryptocurrency. Read through the post, and then see whether you can do it for yourself or not!

Step 1 - Community

No, you don't have to build a community like you do when you plan to rule social media. The game is a little different here. You need to find a community of people that you think would buy your currency.

Once you identify a community, it becomes easier for you to cater to their needs and therefore you can work towards building a stable cryptocurrency rather than going haywire with what you want to achieve.

Remember, you are not here to be a part of the spectator sport - you are in it to win it. And, having a community of people who would want to invest in your currency is the best way to do it!

Step 2 - Code

The second important step is to code. You don't necessarily have to be a master coder to create your own cryptocurrency. There are plenty of open source codes available out there which you can use.

You can even go ahead and hire professionals who can do the job for you. But when coding, do remember one thing - blatant copying is not going to lead you anywhere.

You need to bring some uniqueness in your currency to distinguish it from the ones that already exist. It has to be innovative enough to create ripples in the market. This is the reason just copying the code is not enough to be on top of the cryptocurrency game.

Step 3 - Miners

The third, and the most important step in the process is to get some miners on board who will actually mine your cryptocurrency.

What this means is that you need to have a certain set of people associated with you who can actually spread the word about your currency in the market. You need to have people who can raise awareness about your currency.

This will give you a head start. And, as they say - well begun is half done; miners can eventually lay the foundation of a successfully voyage for your cryptocurrency in the ever growing competition.

Step 4 - Marketing

Last thing you need to do as part of the job here is to connect with merchants who will eventually trade the virtual coins that you have built.

In simpler words, you need to market these coins in the battleground where real people would actually be interested to invest in them. And, this by no means is an easy feat.

You need to win their confidence by letting them know that you have something worthy to offer.

How can you begin with it? The best way to market your coins initially is to identify the target audience who knows what cryptocurrency is.

After all, there is no point in trying to market your stuff to people who don't even know what cryptocurrency is.

Conclusion

So, you can see that building a successful cryptocurrency is more about having the awareness about market trends, and less about being a hardcore techie or an avant-garde coder.

If you have that awareness in you, then it is time to make a heyday while the sun shines in the cryptocurrency niche. Go ahead and plan building your own cryptocurrency by following these simple steps and see how it turns out for you!