It is an alternative currency, just like your debit card, which is backed by the cash you have in your banking account.
Cryptocurrencies are not like your credit card or any of the other 180 decentralized currencies under the control of the United Nations, whose currencies are backed by a central bank, whereas the U.S. dollar is backed by the “Full faith and credit” of the U.S. government.
Cryptocurrencies are maintained, and the value of each coin is derived from their demand/users.
Cryptocurrency can be used to pay for everything: services, clothing, cards, housing, bills, etc. Although currently, cryptocurrencies are not accepted everywhere.
Bitcoin is perhaps the most recognizable cryptocurrency word in the world of over 2,000 plus cryptocurrencies, of which, to date, 8 to 12 are more mainstream, popular, and stable. Currently, 180 currencies worldwide are decentralized or under the control of various governments and are recognized as legal tender by the United Nations. Such as the US. Dollar 9USD), European (EUR), Japan Yen 9JPY0, British pound (GBP), South Africa Rans (ZAR), etc.
These currencies are bought and sold like other commodities, goods, services, and businesses on the stock exchange. These 180 currencies are bought and sold on the forex exchange or Foreign Exchange Market. The Foreign Exchange Market is much like the stock market for buying and selling, exchanging the various 180 currencies of the world. The value of the various foreign exchange currencies is governed by how well the market determines the foreign exchange rates for every currency.
Any government does not own cryptocurrency; it is active versus passive; like the U.S. dollar, the more active cryptocurrency owners and holders, its value increases, whereas the inversion is true. The more the U.S. dollar is used it creates inflation causing goods and services to rise. To correct this problem of the value or the cost/usury/interest rate to use the dollar, Walter Beckley 2022 Smartmoney911.copm 1 of 2 increases, and course, as the cost of money rises, goods and services go down.
Plus, for the first time that the actual currency you use (cryptocurrency) allows you to simultaneously invest in it as you purchase, buy, sell, or trade, you can utilize its value to increase your personal wealth. A dollar is a dollar today and tomorrow for its foreseeable future, whereas cryptocurrency is truly an investment. Forbes listed in the April 5, 2022 edition that “19 billionaire have made their riches in the world of cryptocurrency, which is 7 more than last year”.
Cryptocurrency has a 2 trillion dollar economy and is growing. With 2 of the 19 billionaires holding more than 65 and 24 billion dollars. Plus, there are one million new millionaires. The word cryptocurrency is a new frontier for exchanging goods and services and building wealth. Could cryptocurrency be our modern-day gold rush? Despite the positive and negative swings of the cryptocurrency marketplace and the new economy it is creating. It appears that cryptocurrencies are here to stay!