The concept of "cryptocurrency" sounds from a TV and a radio receiver, it is even with those who are far from financial flows and electronic money. This term appeared not so long ago, but he made a real coup in the field of finance and introduced a completely new definition of currency. Someone considers cryptocurrency a unique chance to get rich, and someone is only a "bubble", which over time will definitely burst and make a real collapse in the global economy.
What is cryptocurrency simple and accessible words?
If we talk simple words, cryptocurrency is the type of digital money, asset. It is based on a special technology - cryptography that implies data encryption.
Such currency cannot be physically touched, they exist only in electronic form. This does not prevent many to invest in it, which leads to growth and popularization of cryptocurrency.
The main advantages of such money can be attributed:
- anonymity - developers guarantee the full preservation of user identity data (under certain circumstances);
- safety - a special system has been developed that protects the funds of cryptocurrency holders;
- efficiency - the possibility of fast payment and purchase with such a currency;
- availability - it can acquire everything if they have a financial opportunity.
The feature of cryptocurrency is that all its owners are equal to each other. The interaction between them is carried out directly, without intermediaries. This greatly simplifies the process and does not make it possible to speculate, establish commissions, etc.
The history of the emergence of cryptocurrencies
For the first time cryptocurrency was represented by the global public in 2009. Then the Bitcoin network originated. The need to create such a system was viewed for a long time. There is no similar currency in the world that would guarantee anonymous rapid payments.
The creator of a new trend in finances is Satoshi Dzamoto - the same mysterious person as the virtual currency itself. It is assumed that a group of people is hidden under this name, who has developed information about cryptography.
Who is actually the founder of this niche, is unknown. In the near future, such information will not appear, because anonymity is the main feature of cryptocurrency and virtual money in general.
Distinctive features of cryptocurrencies
This currency is completely different from the usual cash. Only one similar task remained - payment between the subjects.
Distinctive features of cryptocurrency:
- Virtual money does not have physical form. All dollars and euro can also take an electronic appearance, but the virtual currency will never be able to take a paper look.
- Cryptocurrency is not tied to the bank and the economy of a particular country. It is impossible to influence its emission. This occurs as a result of natural market processes. The course is also established as a result of operations within the system, and not to indicate someone over.
- Information is completely anonymous. To purchase and perform operations with such a currency, you do not need to specify absolutely no data. The only personification of the participant is a digital wallet number.
- Elementary transfer of funds between participants.
Such a new type of currency can be very useful. It will make financial relations safer and reliable, and also significantly simplify the payment process.
There are such uses of cryptocurrency:
- payments between system entities, as well as payment for goods and services;
- use a wallet as a bank. Hacked it thanks to encrypted data is almost impossible.
- in the form of long-term investments. As the latest trends show, cryptocurrency is only becoming more expensive, so this asset is rational to invest.
The most popular types of cryptocurrencies
Cryptovaya - a general concept that includes several types of virtual money. One of the most common species is Bitcoin. Such a currency is the progenitor and the most expensive of all available.
All other virtual currencies have a common name of altcoins and there are a huge amount of them. Thanks to the open source code, the cryptocurrency of anyone can create its own coin, if necessary for this necessary technical knowledge.
Cryptocurrency develops an impressive pace and in the near future can become a leader among other means of payment. Many famous businessmen prefer to keep part of their funds in this currency. All this leads to the fact that it is becoming more expensive and not everyone can buy it now.
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