On the Prospects of Digital Currency

On the Prospects of Digital Currency: As a virtual form of money, digital currency (or electronic capital) has the potential to upend the global marketplace. Blockchain technology, which consists of a digital ledger for financial/online transactions, can be used to bypass traditional tracking mechanisms of paper money. When a central bank prints paper money for a particular country, it inflates the value of that money in an attempt to manipulate supply. With digital currency, however, pre-designated limits (or caps) to the money supply have already been written into their software codes. Thus, the chances of these digital assets experiencing hyper-inflation have essentially been reduced to nil. Perhaps the three most popular digital currencies today are Bitcoin, Ethereum, and Litecoin.  All of which benefit from the peer-to-peer anonymity (or lack of traceability) offered by blockchain technology.