Everyone knows that finance doesn’t necessarily mean money. In fact, it might be one of the oldest professions, predating even farming and mining. But for some people, their passion may be finance, or at least the industry. If you’re reading this, you probably fall into that category. You see, the term “fintech” has been around for a while now, and a lot of people have heard of virtual currencies like bitcoin and ether. But do they know exactly what fintech is? That’s what we’re here to help you with!
Fintech is a catch all term that refers to a wide range of technologies and business practices that aim to improve or revolutionize the financial system. The word itself comes from cryptocurrencies like Bitcoin and Ethereum, which are used as examples of modern-day fintech. What’s even more interesting is that many of these technologies are not only used for financial gain, but for social good as well.
When you think of virtual currencies, you probably think of cryptocurrencies like Bitcoin, which uses a blockchain to record transactions. But virtual currencies don’t just bring technology to the fore; they also bring regulation. After all, when companies use a cryptocurrency to buy goods or services, the payments have to be recorded on a distributed ledger called the blockchain, which is currently under heavy scrutiny.
While cryptocurrencies have their place, the vast majority of cryptocurrencies are meant for financial gain, and most countries have declared them as un-hackable money. This is why virtual currencies are often referred to as “utility” or “utility-based” cryptocurrencies.
When Will Fintech Become Real?
It’s easy to say that money doesn’t matter, because money is a tool used to facilitate trade and exchange. But some people might not realize that finance can also be used for good if used in the right way. Many people are unaware that you can donate money to a charity through a virtual currency, or even hold a cryptocurrency “giveaway” to encourage others to donate too.
In fact, there are several ways that you can use a virtual currency to do good. One way is to donate to a non-profit organization or simply help out a friend in need. Another way is to promote a cause or donate to a specific project for a specific goal. The future of financial technology is bright, and it’s possible that virtual currencies will play a large part in making that happen.