Cryptos and the fiat currencies

Cryptos and the fiat currencies

Cryptocurrencies (which we've commonly come to call Cryptos) are digital currencies which were pioneered by the launch of Bitcoin back in 2009. It was a time when the preceding year 2008 had seen a financial crisis and the world economy had taken a hit. People's trust in governments and banks was greatly diminished and that lack of confidence in the established financial systems drove the first cryptocurrency to find its foothold. It still remains a mystery however who the mastermind behind Bitcoin is, as only the pseudonym Satoshi Nakamoto is tied to it's birth, unknown to be either an individual or a group.

The development of the cryptocurrencies was directly tied to the sentiments by the general public that they wanted control over their their own finances and Cryptos offered just that. Without centralised control, people with cryptos are able to make transactions without having to rely on banks since most of them are peer-to-peer currencies. This user autonomy is what makes cryptos an appealing option since there is no need to go through intermediary authorities.

On the other hand we have the more 'traditional' currencies that can be tangible like the Euro or US dollar and these are called fiat currencies. Their supply is controlled by central banks in the currency's country of origin. Even fiat currencies however, have been going digital in recent years due to the increasing popularity of online banking. These are more reliable as they are tied to world economies giving them a stronger security against inflation. They still dominate in a world where some expect cryptos will be the future of currencies, mainly because fiat currencies have always been widely accepted legal tenders while cryptos are still working their way up that ladder.

With the daily increasing number of investors in cryptocurrencies, they continue to appreciate in value and spread in popularity across the globe. This phenomenon has allowed more and more cryptocurrencies to be created all spearheaded by Bitcoin. Therefore perhaps they really are the future of currencies. In the shadows of this good progress however, a rise of scams also rose from criminals wanting in on the crypto boom. Phishing was one of the leading scams as well as the use of ransomware. For the unfortunate new-comers in the world of crypto and forex markets there's always individuals who claim to be agents of brokers or account managers. Setting up their own clone websites to make the victims believe they're making legit transactions.

It is easy for some to fall for these scams because crypto markets and forex markets are a very common topic lately and there are many testimonials of people getting rich in a small amount of time. Without doing proper research and background checks on these offers one can easily fall into the trap. Everything appears to be going well until withdrawals have to happen, where even more money is required under the pretext of various charges. From there the victim might realise that there is no amount that they will pay that will help them get their “profits” as more and more money is asked. These individual scammers are difficult to track because they likely gave false names to begin with and as an individual they can easily change their contact details and location unlike unregulated and registered brokers.