Cryptocurrencies have been at the center stage of fintech-related developments for the last couple of years. They have brought about a lot of interest from the general public in the field of cryptography. Reputed universities like Princeton are now offering dedicated courses in mastering blockchains. The modern crypto revolution did not start overnight though. Here we analyze the rationale behind using cryptocurrencies (with a historical perspective), the need behind a global value of store, and the rising demand in this field.
For a token to be called “money”, it must satisfy certain requirements; it should be portable, durable, recognizable, scarce, and it should be divisible into proper smaller denominations. Cryptocurrencies fulfill these requirements, and even more. For example, Bitcoin is divisible into 10^8 base units called Satoshis, it can be stored electronically, and it does not atrophy or decay. Moreover, it is backed by proof of work, which ensures its scarcity. In fact the total number of bitcoins to be injected in the market (provided to the miners) over the next few decades has already been estimated very accurately and is capped at 21 million BTC.