It started with an exchange. An eye for an eye. A tit for tat. The barter system was how people exchanged things of value between each other. It was far from a perfect system but sufficed for the time being. As transactions increased, the barter system was facing a lot of pressure to conduct business properly without faltering, and it did for sure.
The problem of double wants and deferred payments was a considerable impediment to previously existing crude economies. Fast forward a few hundred years or even a thousand, with the introduction of money, everything changed. It was honestly the most revolutionary thing that was invented and might always be the most revolutionary one.
Mainly due to its endless possibilities. What prevailed as an excellent instrument of exchange for centuries gave rise to its problems with the increase in technologies and an increase in the complexity of the economic structures all around the world. Digital money was then invented with computers, but just like its predecessors came with its problems.
The newest and most recent invention in finance and computing itself is the introduction of cryptocurrencies. Visit Immediateedge.biz to know more about how the landscape of exchange instruments has changed over time.
This article will tell you why cryptocurrencies are so popular among celebrities and the general high society. Before we go into that, though, we’ll give you a brief introduction to cryptocurrencies and their various uses in the current world. With that being said, without any further ado, let’s get in!
What Is A Cryptocurrency
A cryptocurrency is a digital or virtual currency that is meant to be a medium of exchange. Now cryptocurrency is quite similar to real-world currency, just that it does not have any physical embodiment. It also uses cryptography to work the way it does.
One of the features of cryptocurrency is that there is a limit to how many units can exist with Bitcoin. This limit exists at 21 million now. After this, no more bitcoins will be produced. You can easily verify the transfer of funds and the hashing algorithms that Bitcoin uses to make it very easy for users to determine whether a transaction is valid.
They operate independently of a bank or a central authority. They work in a decentralized manner, and new units can be added only after certain conditions are met. For example, Bitcoin only after a block has been added to the blockchain will the miner be rewarded with bitcoins, and this is the only way new bitcoins can be generated. So what makes cryptocurrency so unique?
Firstly there are little to no transaction costs. If you use the digital wallet, you’ll know if you’re transferring money from your wallet to your bank account. You lose some amount of money, and you have 24/7 access to money; you can’t just walk up to your bank at 3 a.m. in the morning and say that you want to withdraw some money.
There are no limits on purchases, and there’s freedom for anyone to use. For example, if you are setting up an account in your bank, you need to do some paperwork and documentation with cryptocurrencies when all of that can be avoided. International transactions are faster. The wire transfers take about half a day to transfer money from one place to another, but it only takes a matter of minutes or seconds with cryptocurrencies.
Real-World Uses Of Cryptocurrencies And Blockchain Technology
Censorship on social media is starting to be more and more of a problem. It’s a problem for democracy because not everybody can have their voices heard, and it’s also a problem for creators who can get their social media sensors without much recourse.
But fortunately, blockchain can help so with the blockchain-based social network. It will ultimately be censorship-resistant. Nobody could silence your voice, but for this to work, there are some challenges. First, there are substantial network effects for existing social platforms, so it would be complicated to take users from, let’s say, Facebook to a decentralized version of Facebook.
Another problem is that storing data on the blockchain is very expensive. Still, on social media, we have a lot of data, especially with pictures and videos, so we have a real-life example of a social media based on blockchain called steemit.
A blogging system is a little bit like a medium where an author can create an article, and people can comment. He got some traction when it was released in 2017, but recently it became a bit obsolete.
Why Crypto Is So Popular Amongst Celebrities
Coming to why celebrities are jumping on the cryptocurrency bandwagon more is a pretty straightforward concept to think about. This is because of a few factors mainly which are:
Want for more investments
Celebrities, on average, are a lot more aware and intelligent when it comes to multiple forms of income. For example, investments have the potential to be a massive part of one’s income, and celebrities, for the most part, recognize the importance of investments in their financial accumulations.
Great financial managers
Most celebrities don’t do their finances themselves. However, they always have a competent team that works continuously to find good patterns and advancements to create financial opportunities for their clients. This team or highly competent team realizes the need for cryptocurrency investments as they are the future of currency itself.
Celebrities have first news about most advancements financially, secure their assets, or create an opening to add another flow of income. This is an essential tactic that celebrities realize the importance of. Hence, any updates about cryptocurrencies are sure to reach celebs first.
Generational wealth is possible only by earning vast amounts of money and having a successful and intricate investment portfolio. Celebrities are the ones that build large amounts of generational wealth. And they realize that one of those ways is by investing in cryptocurrencies.