Cryptocurrency is defined as a digital currency that serves as a medium of exchange especially among online users. They are also decentralized. Cryptocurrency is generated by the creation of blocks by action of mining through cloud mining or hardware mining. We have many cryptocurrencies like Bitcoin, Ethereum, bitcoin cash, stellar lumen and the rest. These currencies serve as not only a medium of exchange but also generation of wealth and storage of money digitally.
Taking two popular cryptocurrencies for example bitcoin and ethereum, bitcoin was created 2009 by Satoshi Nakamoto, bitcoin is the cryptocurrency with the most value starting from a very low price to over $6000 per BTC. It uses blockchain as a type of diary to store information and data about transactions like mining, sending and receiving Bitcoin from user to user. Bitcoin, the first cryptocurrency, has opened up many business opportunities like wallet providers, trading platforms, playing games, betting and also mining companies that are those that produce hardware miners and those that offer cloud mining, therefore contributing to the world's economic growth.
Major financial institutions also accept Bitcoin due to its effects on financial activities, ATM machines have been created for BTC transactions. This all plays down the great economic effect of BTC as a cryptocurrency.
Another cryptocurrency that came to light is Ethereum, even though its value is nothing compared to Bitcoin, its value is high as a currency when compared to the dollar. It trades at over 150 dollars per Eth, Ethereum like BTC is also a decentralized platform for money. According to Coinbase, it is both a cryptocurrency and a decentralized platform. Like BTC it can be traded, stored, used as a medium of exchange and mined. According to Wikipedia, Ethereum was first proposed in late 2013 by Vitalik Buterin but was first released on 30 July 2015.
Cryptocurrency being a digital currency has its advantages and disadvantages, as a digital currency an advantage is the storage and creation of wealth. Many users of cryptocurrency users use it for storing wealth that they won't want to make public, especially public figures, not only for privacy purposes but for generating additional value to your wealth as its price is known to move up and down significantly when compared to local currencies.
Cryptocurrency transaction fees are smaller when sending and receiving compared to other financial services, you can send over $1000000 with not up to $1 transaction fee, compared to when using bank wire where fees depends on amount of money sent, also this transaction takes place in a matter of hours, you don't have to wait for a day for your money to get delivered.
Cryptocurrency also helps through mining for anybody who has a computer and the internet to make money, also its volatility could serve as an investment for investors, since cryptocurrencies are known to move up and down at higher rates, profitability for investors are always guaranteed.
As much as the advantages of cryptocurrency entice people they are also cons to cryptocurrencies, cryptocurrency as secure as it could be can also be hijacked, there have been series of cases where by users report that their crypto was stolen, yes hackers can take your money away. Users of cryptocurrency should always be careful when transacting, and also always use a strong password for their wallets to avoid it being hijacked.
Cryptocurrency as a medium of exchange has proved abortive in many cases, like trying to send money, then your crypto gets stuck in limbo, while your money can be retrieved from sending through local currencies, and in crypto you don't get your money back as it is lost, it is digital.
Also investment can be compromised by the volatility of cryptocurrency, that is when cryptocurrency goes low the value of the investment turns into loss instead of profit, an instance is where an investor investing $1000000 to crypto which was 10000 dollars per BTC and in just a matter of days or week the price moves down to $6000, investments is compromised of course leading to the loss for the investor.
Cryptocurrency is considered the future for all technology and all financial activities, we can see how it is affecting or how it has affected the economy and market in various ways negatively and positively, but anything that is legal and profitable should be considered worth it.