Today we are kicking it in a new a whole new world of money. Back in the day, only rich folk were successful in major economic growth. The internet has opened doors to social equality for anyone who can comprehend this economical transition into the volatile market of cryptocurrency. Anybody can take full advantage of the many opportunities in this era of cryptocurrency. The idea of money has changed as well as the way of transactions and contracts.
A Brief Look Into Evolution of Money
The first big change in the history of people making transactions was the barter system, the exchange of commodities and services for other commodities and services of equal value. Next, value represented by coins and paper and backed up commodities was created to transfer value to and from people. Afterwards, fiat currency, which is money that is backed up only by trust in governments that issue it and ultimately allowing chief domination of the supply of fiat currency. The world's transformation of fiat currency by digitalization brought forth interconnections and growth of global economies. Now, transactions have advanced through cryptocurrency, all because of a new fascinating technology called Blockchain has done away with the practice of governments backing and issuing fiat currency. The no fraudulent, scam proof Blockchain technology, by it's decentralized nature, insists trust in transactions. Due to cryptocurrency being developed on Blockchain, mediums of exchange and the way we use them has totally evolved.
Types of Cryptocurrency
There are three types of cryptocurrencies to know about: Cryptocurrency Coins, Cryptocurrency Tokens, and Stable Coins.
- Cryptocurrency Coins - these type all have their own Blockchain network and are used in the exchange of many products and services. They record their transactions on their own network and take away the need for fiat currency(e.g. U.S. Dollars), as well as being on the rise of becoming the primary means of exchange(although, governments will aim to create their own types of cryptocurrencies).
- Cryptocurrency Tokens - these type don't have their own Blockchain networks. However, they can be created on cryptocurrency coin's Blockchain network and are structured to x out middlemen, create new markets, and refer to products or shares of companies issued by Initial Coin Offerings(ICOs). Cryptocurrency Tokens are of two types: Utility and Security. They are foundations for a brand new world of applications.
- Stable Coins - these type are backed up by other assets such as fiat currency and commodities. It has a fixed valuation related to what's backing it up.
There's alot to learn on the CryptoGrind. We will learn together. I will go more in depth about these different types of cryptocurrencies soon. Until then, may you all find prosperity in abundance through CryptoGrind. God bless.
