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2018 has been the year of Cryptocurrencies. A cryptocurrency is a form of digital currency that is decentralized. This essentially means that it is not regulated by any central banking system, and instead it relies on cryptographic protocols, or extremely complex code systems, which encrypt sensitive data transfers to secure their units of exchange. Cryptocurrencies existed as theoretical concepts a couple of decades ago, but the foundation for the same was laid in the 1980’s. ‘Bitcoin’ was the first and is the currently most popular Cryptocurrency, it is being traded since 2009.
Features of Cyptocurrencies:
Popular Cryptocurrencies:
Where can one buy or trade in Cryptocurrency?
Cryptocurrencies can be bought easily through platforms like Coinbase, one needs to register and link their debit/ credit card or bank account. Other popular platforms include Indacoin.com, LocalBitcoins.com, and the BitPanda app. Bitcoin is the most popular and trustworthy cryptocurrency due to its ability to maintain its protocol with minimal issues.
Advantages of Cryptocurrencies:
Disadvantages of Cryptocurrencies:
Whether or not Cryptocurrencies will be the future of money is difficult to say, but they are surely changing the way we transact. Secondly with their growing popularity, security, and ease of transaction, they will defnately leave lasting changes in the traditional financial system.
The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.
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