The term cryptocurrency can be said to be a very popular topic in the world. After all, cryptocurrency has frequently appeared in people's view in recent years, but for some ordinary people, they do not know cryptocurrency. In fact, cryptocurrency is a kind of virtual currency, which is a kind of loan currency traded using cryptography principles. So where is the value of cryptocurrency? What are its uses? Next, let's have a look.
What is the value of cryptocurrency?
1. It is the medium circulating among currencies of various countries
Encrypted digital assets finally play a difficult role in "clearing and exchange settlement between the international Internet of Things and commerce". The reason why it has attracted the attention of many industries around the world is that it is creating a global fast circulation, and the larger the circulation field is, the wider the scope is, and the higher the application value is. Therefore, the issuance of encrypted digital assets must be global. Moreover, the circulation field and market share can be seen from the company's platform, and the issuer is also trying to expand its market space in the circulation field or the platform has a real plan and background to move towards this goal.
2. The circulation must withstand the scrutiny and textual research of the laws of various countries
The sale of encrypted digital assets cannot become a tool for terrorism, money laundering by illegal organizations, tax evasion and tax evasion in various countries. From a long-term perspective, encrypted digital assets must be easily included in the financial systems and tax management of various countries, so that there is sufficient market space and development potential. This requires that the management of the sale of encrypted digital assets needs to be supervised by the authoritative department and must be registered in real name.
3. Reduce the threshold of international financing and expand the social financing market
The issuance of encrypted digital assets is a breakthrough in increasing social financing methods, reducing the international financing threshold, and expanding the social financing market. Its crowdfunding method of direct marketing propagation is an economic method that starts from the benefits of the lower society. Its greatest help is to draw in the gap between rich and poor, advocate everyone's participation, and provide people from all walks of life with a channel for common prosperity. Therefore, the distribution mode of encrypted digital assets must have a wide audience.
Market segmentation: Any good input product is a root market. In addition to international foreign exchange settlement, the payment of encrypted digital assets can also be subdivided according to the industry field and the Internet field under the payment function.
If you take off the payment function jacket, the essence of encrypted digital assets is similar to the issuance of shares, and it is also a financing means for the company's Bo development. Therefore, the emergence of cryptocurrency is a good thing from the perspective of market economy. It not only solves social financing, but also solves the problem of the gap between rich and poor in the lower society. From the perspective of China's macro-economy, the rise of crypto digital assets will lead China's economy to the overtaking lane.
Use of Cryptocurrency
1. Cryptocurrency facilitates low cost transfer
For many customers, the cost of interbank funds transfer is generally controlled by many factors, including high transaction costs, uncompetitive rates and geographical restrictions. According to a recent study by the bank, the average cost of each bank transaction for individual customers may reach 5.5% of the transfer amount. International remittances may also take five working days. Although the characteristics of transfer have not changed, Ripple and other companies are using data tokens to accelerate the transfer rate and reduce costs. Ripple sells a cryptocurrency called XRP. Ripple, headquartered in California, has already created a $300 million fund to pay accounts to enterprises that use XRP to carry out cross-border transfers.
2. Blockchain application to combat election fraud
Cryptocurrencies such as Bitcoin and Lite Coin may have affected the view on currency lending, but their impact has formed a far-reaching impact in other less obvious industries, such as non-profit organizations that try to protect and enhance the participation of voters in democratic countries.
3. Blockchain boosts green energy trading
A key advantage of distributed database systems has been demonstrated in Brooklyn, New York. There, in a promising project, dozens of owners cooperated to install solar photovoltaic panels as part of a separate network. Brooklyn Microgrid is operated by LO3 Energy, a technology startup. It enables households and enterprises to be self reliant on energy, while allowing them to enter a trading platform to sell excess electricity to many customers in the group. Brooklyn Microgrid Company has about 50 participants, but its initial scale is small. It is part of a larger idea, that is, to create a nationwide point-to-point energy trading system using blockchain applications.
Speaking of this, I believe you have a certain understanding of the value of cryptocurrency and its use. In general, the current development of cryptocurrency is good. We also expect that cryptocurrency will bring us more convenience in the future.
