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Is Crypto Real Money?

Is Crypto Real Money
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Is Crypto Real Money? The world is full of virtual things like Facebook likes and Skype phone calls. However, cryptocurrency could raise the bar (at least for many people) on what constitutes “real” money. And how you can use it yourself! Here’s a look at why it does qualify as real money.

Is Crypto Real Money?

What makes real money?

A dictionary definition of “money” includes any medium of exchange generally accepted as payment for goods or services and repayment of debts in a particular country or socio-economic context. Cryptocurrencies meet all those criteria – they are used to buy and sell things online. They represent value stored in an electronic format, and people will accept them as payment just like other currencies. As cryptocurrencies gain traction and participate more in the economy, they will likely be considered real money.

What cryptocurrencies qualify as real money?

According to CoinMarketCap, there are more than 500 different coins available on the market right now. Some of these coins may not survive for very long, but there are a few that meet all the criteria for real money:

Bitcoin (BTC) – Launched back in 2009, it is the original cryptocurrency and most people’s standard for virtual currency. BTC has an extremely wide acceptance network and is accepted by hundreds of thousands of companies worldwide. Ethereum (ETH) – Ether tokens were launched just two years ago and quickly rose to second place among cryptocurrencies by market capitalization. One unique feature of this token is that instead of just being a currency, it allows you to build decentralized applications and smart contracts on the blockchain itself. Ripple (XRP) – At a market cap of a little more than a third of Ethereum’s, XRP is also one of the most widely accepted cryptocurrencies on this list. It was created primarily as a way for banks to transfer funds from one country to another inexpensively.

One important reason why cryptocurrency qualifies as real money is its value in cross-border transactions. Since there are no borders among virtual currency users, you can send or receive payments from anyone anywhere at any time without worrying about whether your payment will be blocked due to where you live or what national holiday might be going on at the time.

Using cryptocurrency in everyday life

Cryptocurrencies are rapidly gaining popularity, and it’s looking more likely that they will become mainstream. More online retailers are accepting cryptocurrency all the time, which means that you have a greater ability to choose how you spend your money – just like with any other type of currency. You can pay for items in brick-and-mortar stores using your phone if their point-of-sale system is set up to accept cryptocurrency as payment (such as Bitcoin or Ethereum). Once cryptocurrencies are accepted by most merchants worldwide, they will be considered real money.

Who decides if crypto is real money?

You’re probably wondering who could decide on whether or not cryptocurrencies should be considered real money. While there are no official regulations on the matter, the people will likely decide for themselves whether or not cryptocurrency is real money by accepting or refusing to accept it as payment.

For example, if you have a brick-and-mortar store, you can choose to accept cryptocurrency as payment, just like cash. If nobody comes along and uses their coins to buy anything from your store (or even tries to), you might decide that virtual currency doesn’t count as real money after all.

The reality of cryptocurrencies may be up for debate by some people, but there are still many benefits to using them over other forms of payment:

Low fees

The value of bitcoins fluctuates often, but the cost of sending and receiving them is usually much lower than what it costs to send or receive any other kind of currency Exchange rates – If you’re using a different type of cryptocurrency, than the person you’re trying to send money to, your wallet will automatically convert one into the other. You don’t have to worry about exchanging money at the bank as often as with national currencies, but there may still be some fees associated with doing so, depending on how you make your transaction.

No interference from governments or banks

Cryptocurrency has no central authority figure controlling its value. This means that nobody can freeze your account, take away your money, or tell you how many funds you can transfer at once. It’s up to the users themselves to decide these things.

Decentralization

There’s no way for anyone to take control of the Bitcoin blockchain and use it for evil purposes, like turning off all Bitcoin transactions or changing existing information about who owns how many bitcoins. This is because thousands (or perhaps millions) of nodes store records of every transaction taking place on the Bitcoin network worldwide.

Final Word

Cryptocurrency may appeal to some people because they disapprove of traditional money management methods used by banks and national governments. They feel that individuals should be free to decide how much money they’re allowed to transfer at any one time, where their money comes from, etc., without having to ask permission or pay extra fees. 

 

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