What is a cryptocurrency?


A cryptocurrency or cryptocurrency (Saxon cryptocurrency) is a virtual currency that is used to exchange goods and services through a system of electronic transactions without having to go through any intermediary. The first cryptocurrency to start trading was Bitcoin in 2009 and many more have appeared since then, with other features such as Litecoin, Ripple, Dogecoin and others.

What is the advantage?

When comparing a cryptocurrency with banknote money, the difference is that:

They are decentralized: they are not controlled by the bank, the government or any financial institution

They are anonymous: your privacy is preserved when making transactions

They are international: everyone’s opera with them

They are safe: your coins are yours and no one else’s, they are stored in a personal wallet with non-transferable codes that only you know.

It has no intermediaries: transactions are carried out from person to person

Fast transactions: to send money to another country they charge interest and it often takes days to confirm; with cryptocurrencies just a few minutes.

Irreversible transactions.

Bitcoins and any other virtual currency can be exchanged for any world currency

It cannot be falsified because they are encrypted with a sophisticated cryptographic system

Unlike currencies, the value of electronic currencies is subject to the oldest rule of the market: supply and demand. “It currently has a value of more than $ 1,000 and, like stocks, that value can increase or decrease supply and demand.

What is the origin of Bitcoin?

Bitcoin, is the first cryptocurrency created by Satoshi Nakamoto in 2009. He decided to launch a new currency

Its peculiarity is that only operations can be performed within the network network.

Bitcoin refers to both the currency and the protocol and red P2P on which it is based.

So what is Bitcoin?

Bitcoin is a virtual and intangible currency. That is, none of your forms can be touched as with coins or banknotes, but it can be used as a means of payment in the same way as these.

In some countries, you can earn income with an electronic debit card page that allows you to exchange money with cryptocurrencies like XAPO. In Argentina, for example, we have more than 200 bitcoin terminals.

Undoubtedly, what makes Bitcoin different from traditional currencies and other virtual means of payment such as Amazon Coins, Action Coins, is decentralization. Bitcoin is not controlled by any government, institution, or financial institution, whether state-owned or private, such as the euro, controlled by the Central Bank, or the dollar by the US Federal Reserve.

In Bitcoin they control the real ones, indirectly through their transactions, the users through P2 P exchanges (point to point or point to point). This structure and lack of control means that any authority can manipulate its value or cause inflation by producing more. Its production and value is based on the law of supply and demand. Another interesting detail of Bitcoin has a limit of 21 million coins, which will be reached by 2030.

How much is a Bitcoin worth?

As we have noted, the value of Bitcoin is based on supply and demand and is calculated using an algorithm that measures the number of transactions and transactions with Bitcoin in real time. Currently, the price of Bitcoin is $ 9,300 (as of March 11, 2018), although this value is not much less stable and Bitcoin is ranked as the most unstable currency in the foreign exchange market.