Now a days, cryptocurrency have become a global phenomenon caught eyes of market, investors, businesses, startups, and tech peoples. Many of Businesses and Startups thinking to launch their own cryptocurrency in the market to raise fund/investors for their business growth but few of them really know about the meaning of cryptocurrency, blockchain technology, advantages and disadvantages of cryptocurrency and purpose of own cryptocurrency.
Cryptocurrency is a digital or virtual currency designed to work as medium of exchange that uses cryptography to secure the transactions. such examples are bitcoin, ethereum, and ripple.
“The future of money is digital currency” - bill Gates
Blockchain is a technology or network of computers which is uses to jointly manage the database that records cryptocurrency transactions. Blockchain is an underlying technology facilitates to transact and eliminate need for intermediary.
Yes, blockchain is something which you must require to create your token i.e. cryptocurrency. Not all blockchain allows to create your own token, only ethereum allows you to create your cryptocurrency on the top of ethereum blockchain.
image source: http://www.visualcapitalist.com
Pros of Launching your own cryptocurrency:
- Cryptocurrency is transparent as it uses blockchain technology where all transactions are being recorded.
- Simple, easy and quick to create your token using ERC20 (ethereum). Still you require knowledge how to program.
- You can launch ICO (Initial coin offering)for your business to raise the fund
- Cryptocurrency doesn’t have any identity of the user other than token address
- You can allow user to make your cryptocurrency as a medium of exchange in case of you have multi-product business
- Portability: unlike fiat currency, a number of cryptocurrency can be transported easily without detection.
Cons of Launching your own cryptocurrency:
- First and Foremost disadvantage that it uses other Cryptocurrency platform i.e. ethereum as a base which cause dependency of price of base blockchain. Change in ethereum price cause impact on price of your cryptocurrency as well.
- It requires knowledge of blockchain, and specific programming technologies e.g. solidity, truffle
Well, after considering all the pros and cons for creating new cryptocurrency is totally depending upon the intention and requirement of your business respecting all the facts.