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What is the latest Cryptocurrency?

 

Cryptocurrency appeared and with them more hope for some, and more anxiety for others, a completely new idea, a genius invention so that it is said that its owner deserves the Nobel Prize in Economics.


How cryptocurrency works


A new financial system that no one controls or manages, as it is outside the control of countries and traditional economic systems.

But:


Will digital currencies withstand the challenges it faces, and will they have a presence in the future?

Will digital currencies become an alternative to fiat currencies one day?


Will digital currencies pose a threat to the current economic system, or can countries and governments live with it?

Why do digital currencies pose a threat in the first place to systems and countries?


This is a sample of the many questions that revolve in the minds of many specialists in economic work, and in the minds of the governments of smart and conscious countries. And in the mind of a lot of interested people, too.


Does this give you some hint of how important the topic you are talking about today is?

I know that you are mostly here not to find answers to questions from the sample presented above.

But you want to understand what digital currencies are from the ground up and how they work. How do you get it, how is it used and how do you trade with it.


In this article, I will address the issue of cryptocurrencies, from the angle that you want to understand as a new topic and how to deal with it.

Also for those who are interested, you will find in the middle of the lines perhaps, or in separate points, some of the things related to the questions raised above.


It is worth noting that so far, no one has clear and confirmed answers to the questions posed above.

But anyway, just asking and thinking about these questions is a very healthy thing for you as a potential user of these coins.

Now let's start the topic, and make you understand what digital currencies are in an easy and simple way.


What is crypto currency?

Digital currencies, cryptocurrency, electronic currency, or cryptocurrencies are all synonyms for one meaning.


Digital currencies are currencies that have no physical basis. They are produced, traded, and used in purchases, mostly through the Internet.


It is traded in a peer-to-peer manner. That is, there is no intermediary in dealing (in contrast to normal currencies in which banks are intermediaries).


Digital currencies are decentralized currencies in the sense that there is no government or regulatory entity to manage or issue them.

It adopts the registration and monitoring of trading operations in digital currencies by prospectors or miners.


What is the most widely used digital currency?

Bitcoin appeared in 2009 as the first cryptocurrency, and many netizens associate the idea of cryptocurrencies with Bitcoin.

They do not know more about the rest of the currencies that appeared after him.


The shocking fact is that there are more than 1500 cryptocurrencies so far.

But what dominates the scene and is the most famous in the world of digital currencies, is a small list of currencies, the most important of which are:


Bitcoin

Bitcoin is the first crypto digital currency, it first appeared in 2009, the real name of the inventor of this currency has not yet been announced.

But its inventor chose the name Satoshi Nakamoto as the default name for him, and for the coin to be associated with this name, whose identity we do not know yet.


Ethereum

It appeared in 2015, and it is considered the strongest competitor to the first and comes in the second degree of importance.

Its price has now exceeded $900.


Litecoin

It was released at the end of 2011 by Charlie Lee.

Its price ranges from 200 to 300 dollars.


Ripple

It was released in 2012 by Ripple.

Although its price does not exceed one dollar, it is one of the most important and famous cryptocurrencies.


Namecoin

It was released in 2011 and its price ranges between 3 to 5 dollars.


Digital currency business idea

The idea of ​​cryptocurrency is similar to that of a miner.

If there is a mountain that contains quantities of gold, it is likely that some companies will bring the appropriate machines and start prospecting to get gold from this mountain.


Cryptocurrencies are also based on the idea of ​​mining, so in order to start extracting digital currencies, you have to get high-speed computers.

You download the custom mining software and start the mining process.


But here the situation is different in some respects. In the case of digital currencies, mining is with the aim of solving a set of complex mathematical equations and algorithms.


The benefit here is the grants provided by the crypto-digital currency system to those who can solve these mathematical equations.

As for the benefit of the system itself, it depends on the miners, who record the trading operations on their own devices.

From this stems a strong security system based on encryption.


Here we are talking about how to mine for fiat currencies. But this does not mean that mining is the only way to obtain digital currencies.

But there is a large market for currencies that you can buy through, and you can also sell your product online for digital currencies.


Think of it as a decentralized financial system, in which the miners maintain the system and record transactions between users, and in return, the system gives new currencies to these miners.

In fact, the cryptocurrency system is more complicated than that, but you do not need more than what has already been explained.


What are the pros and cons of cryptocurrency?

  • It allows anyone, anywhere in the world, to transfer money in minutes to anyone anywhere else.
  • It is private, so no one can see your account except you.
  • It is characterized by a genius security system, even large banks can hack their own networks, but digital currencies are very difficult if not impossible to hack their system. This is due to the multiplicity of miners, and each of them owns a record of all financial transactions from start to finish. There are tens of thousands of devices that maintain a blockchain (a blockchain is a record of all the transactions of a cryptocurrency)

  • No or at least an estimate Low transfer commission rate to the lowest possible level, a very small transfer commission and never compared to the commissions that are calculated in traditional financial systems.
  • You will work on the recovery of the trade movement, because of the unlimited ease of trading.


The risks and drawbacks of digital currencies

  • In the absence of a supervisory authority to refer to in cases of fraud and fraud, the user is absolutely responsible for his digital funds.
  • The absence of personal data for users of the currency made it a means for suspicious transactions such as arms and drug trade.
  • The state cannot charge taxes on commercial operations conducted through digital currencies. It is assumed that taxes are one of the most important sources of income for every country, from which health and education services are provided to citizens. Hence, digital currencies can harm the economy of countries in the long run.
  • The fluctuation in the price of digital currencies causes concern for many and makes it closer to the speculative market than as an alternative currency. It is not completely reliable at the moment.
  • There are billions of people around the world who are not good at using the Internet and dealing with technology. On the other hand, there are many who have the ability to use digital currencies, but feel suspicious and suspicious of them.

In the end, I would like to emphasize that this article is not intended to encourage or intimidate you from using digital currencies.

But my purpose here is to give you knowledge.

Digital currencies now have a major role in the global trading movement, so this cannot be overlooked.
At least now you understand what digital currencies are.


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