Why is Cryptocurrency Valuable?

Some years ago, many people were only familiar with the main entry into the crypto market known as bitcoin. However, in recent times, many others have emerged. Common among them are Ethereum, Dogecoin, Litecoin, and Ripple.

There is no doubt that cryptocurrency has come to stay as a form of a digital payment system. The value of cryptocurrency will only continue to increase as it gains broader acceptance as a means of storing value and a means of exchange.

To maximize users’ gains from cryptocurrencies’ (i.e. Bitcoin, Ethereum, USDC, Dai, USDT) capital appreciation and yield interest, Derysq has built a web application that (1) maximizes the gains, (2) insures against losses, and (3) provide stable passive crypto income (in a crypto world with highly volatile interest) to the users who park their funds in Derysq. Sign up here to be one of the early users once it launches publicly.

What is cryptocurrency

Cryptocurrency is a digital payment system. This payment system does not rely on the traditional banking system for the stability and verification of transactions. As a peer-to-peer system, a few people can't control the flow of the currency.

Cryptocurrency transactions are recorded in a ledger that's available to the public. They don't exist as paper money but as somewhat digital entries. They are stored in a wallet.

How Cryptocurrency Works

Cryptocurrency runs on public ledgers. These ledgers are a blockchain and allow currency holders to update transactions carried out on the system.

To multiply cryptocurrency, an individual has to engage in mining the currency. Additionally, individuals can buy units of this currency from others who are willing to sell at a fixed price determined by the forces of demand and supply.

Where Cryptocurrency Gets its Value

For any material to be considered an acceptable means of exchange, it must possess specific characteristics. The following are the qualities of cryptocurrency that make it valuable

#1. Acceptability

One of the things that makes cryptocurrency valuable is that many people agree that it is beneficial. General acceptability was what other means of exchange in the past, like gold, stocks, and cowrie shells their value.

When the first cryptocurrency came into the picture, it had no value because it had not been accepted by many people as a means of exchange; however, as these currencies gain more acceptance across a wide range of people, their value increased.

#2. They are Durable

These currencies are not perishable and can be used over time. They also have a unit of measurement that is the same everywhere. This makes them a reliable store of value.

#3. It is Recognisable

Cryptocurrency derives its value from the fact that people recognize it for what it is - a means of exchange and store of value. Without this recognition, the currency will be more or less valueless.

Summary

Cryptocurrency has come to stay and is fast changing the narrative in the financial world. As time goes by, many more companies and individuals will likely accept it as a means of exchange, increasing its value. Its peer-to-peer characteristics make it a more attractive means of exchange to individuals seeking higher control over their finances away from centrally-based systems and institutions.

To maximize users’ gains from cryptocurrencies’ (i.e. Bitcoin, Ethereum, USDC, Dai, USDT) capital appreciation and yield interest, Derysq has built a web application that (1) maximizes the gains, (2) insures against losses, and (3) provide stable passive crypto income (in a crypto world with highly volatile interest) to the users who park their funds in Derysq. Sign up here to be one of the early users once it launches publicly.