What Is Decentralized Currency?
Decentralized currency is defined as any currency or money that is not under the control of the government or banks. It is a peer-to-peer type of money, and any established regulatory bodies do not issue it.
Although it is not government or bank issue, it is still used to store and transfer wealth within and outside a country without a 3rd party regulatory body to act as an oversight. Decentralized currencies are used in the decentralized market to store value. But some decentralized markets may issue a fiat, also known as paper money which is not a decentralized currency. Digital currencies are virtual and not physically tangible, and for this, it is a commodity for the virtual market, which is an emerging market in the current dispensation.
Many young investors have continued to increasingly utilize digital currency as a means to store and transfer value. This isn’t surprising because they see it as unregulated and more trusted than the regular paper money. The government exerts too much control and manipulation over central bank-issued monetary policy, and in decentralized currency, the government cannot use monetary policies to adjust its value unnecessarily.
Because decentralized currency does not allow the government to exert influence over it, it enables individual owners to exert much greater control than fiat, giving owners much more confidence and an increased sense of security. This makes it democratic because it offers its owners more influence and power than a centralized agency. This is a trademark of democracy. So, this means that the individual owners have much say over the commodity. Because of this, digital currencies have been increasingly adopted all over the world. Even in heavily controlled communist nations like China.
Decentralized Currency Example
Since the first cryptocurrency or digital currency was launched, more than 2000 of these types of currency have been invented with a market cap of over $2 trillion. This feat was achieved in barely a decade of the adoption. The most common examples of digital currency include
This is the first cryptocurrency to be created. It was built in the year 2009. It is the largest and most dominant cryptocurrency
This is the second most dominant and most used crypto. It was launched in the year 2015
Other examples of digital currency include Binance coin Solana etc.« Back to Glossary Index