Cryptocurrency, blockchain, trading, miners, spinner, mainstream … If you do not know these trend words our articles will help you to figure it out! With the help of the based information we answer complex questions!
In the 21st century, new trend opportunities and financial instruments appear daily, bringing economic relations to a qualitatively new level. A bright example of this, it is cryptocurrency and related concepts with it that could already be appreciated by both large business representatives and ordinary users of networks.
Cryptocurrency is a secured unregulated digital currency that is used as an analogue of a currency in exchange transactions in its platform. English people think that it is a digital currency produced by a social network, rather than any government, that uses cryptography to make sure payments are sent and received safely. Cryptocurrency does not have any physical forms, it exists only in the electronic network in the form of data. An exchange through a cryptocurrency happens in the same way as an exchange of email addresses, so there is much less processing time than through a bank, minimal fees and the absence of an intermediary. It cannot to be the main advantage.
The meaning of the word “cryptocurrency” was first discussed in 2011, starting with the publication of Forbes magazine. Since then, the name has become firmly established and it is applied to coins that do not have the expression in the form of paper banknotes. This kind of money are going only in the digital space.
Cryptocurrency is electronic money, the issue of which is carried out by the blockchain algorithm. This is a giant chain which consists of special blocks, pieces of code. Network members can save this circuit on their own computers. The token takes into account all actions – transactions, the generation of new blocks and it even automatically saves specific information what you need. You cannot roll back a completed action or fake a record
Cryptocurrencies are just one of the many opportunities for using blockchain technology. And bitcoin is the most famous and common cryptocurrency in the world.
In fact, there are a great many cryptocurrencies: for example, Ethereum,
Dec, Litecoin, Dash, Peercoin and even a Dogecoin named after a viral Internet meme with a dog. Currencies are different in mining algorithms, speed of operation, degree of security and privacy. But the major of them is bitcoin.
Generally, cryptocurrency does not have any official status as a means of payment. But standard properties as decentralization have advantages for all users. Owners of any of the existing cryptocurrencies do not depend on any geographical location, state, services or political system. Despite of total depending the exchange rate of real money report like the dollar or the euro in their real price, digital money is “valuable in itself.”
- The most popular way to trade cryptocurrency is to register a wallet, then to buy cryptocurrency for regular currency and then exchange it for Bitcoin or altcoins or any others cryptocurrencies on a specialized exchange. This way a serious investor or any other people can do investing of their money in various digital assets, while being safe from theft of digital data and hacker attacks.
At first, when cryptocurrency only appeared, it was accepted exclusively on shadow sites, but gradually it became a full-fledged currency, which is accepted both online and in ordinary shops. As a result, banks and state financial authorities began to understand that such a revolutionary way of mutual settlements can transform the entire financial world, and weak partially the control of cryptocurrency circulation.
There are a number of factors that can affect the increase or falling of cryptocurrency. It can happen because the growth can be caused by high demand, while buying cryptocurrency for speculative purposes have effects on supply.
The downfall of cryptocurrency can be caused by negative news background and statements or actions of government authorities. So, in 2013, the Chinese government recommended financial institutions not to conduct operations in bitcoins, in connection with which the main cryptocurrency in the world fell immediately by $ 300 at once. A year later, there was another unexpected drop due to the fact that Bitcoin exchanges stopped receiving supplies from banks, and in 2017 there was unconfirmed cryptocurrency news that China was going to limit the work of the most active crypto-burses.
One more example: in December, 2014, a hacker attack occurred in United Stated of America, as a result of which several exchanges stopped working for some time. It was possible to restore work quickly enough, but these exchanges managed to lose up to 23% of their value in one day, that was a real fail for many companies in money industry in the world. There are many other reasons which can significantly change the rate of cryptocurrencies.
In our days, the cryptocurrency market has reached its historic maximum capitalization of $ 60 billion. It happened also because users are beginning to consider cryptocurrency as an amazing investment tool.
In some countries, btc was recognized as a monetary substitute only in 2014. Whether cryptocurrency wins ordinary money in the future or not, we don’t know, but we are sure that it’s possible that most of the world’s population will use cryptocurrency daily, but it’s unlikely that they would destroy the money in total. Follow us to know more even at holiday we can give you right information about it )