Sirwin
Sirwin
CRYPTO CURRENCIES

WHAT'S CRYPTO VALUE?

By giada | GiaDA | 18 Apr 2020


Let's start with the most trivial question: what does cryptocurrency mean? The term cryptocurrency is made up of two words: crypto and currency. Namely crypto currency, hidden. In fact, these are digital coins, therefore, virtual, encrypted behind a code. Known only to the system within which they are made: the Blockchain, which we will discuss later. Although there are cryptocurrencies that manage to hide the sender, recipient and transaction value as well from third parties that are part of the Blockchain. Like NEM and Monero.
What are cryptocurrencies? They can be understood both as a real currency (therefore currency) to buy goods and services, and to convert traditional currencies (the so-called FIAT currencies, therefore dollars, euros, Yen, etc.) and as an asset to invest in through trading on online platforms called Brokers.
Cryptocurrencies were born to make the monetary system decentralized, therefore not subject to central powers such as governments and banks. To decide on their fate must therefore be the same users who are part of the system, in a democratic way, weighing everyone in the same way. Although the first cryptocurrency created, Bitcoin, has failed in this assumption given that monopolies (the so-called mining pools) have been created as Bitcoin mining has become difficult and expensive. So out of the reach of simple users who use ordinary computers. In addition, companies are being created specifically for this purpose, which are moving to the countries of Eastern Europe since electricity is much cheaper there (Bitcoin mining requires high current consumption).
Cryptocurrency features
What are the main features of cryptocurrencies?
Here are the main features of cryptocurrencies:
• Decentralized system: as just mentioned, compared to normal traditional currencies, there is no central bank that deals with "printing" money, controlling its flow, and so on
• Anonymity: many cryptocurrencies manage to guarantee a high level of anonymity in the exchanges that take place between users, also for purchases and sales
• Limited number: most cryptocurrencies have a "limited" number of money that can be "produced". For Bitcoin for example it is 21 million.
• Security: the transactions that take place with cryptocurrencies are one hundred percent secure, precisely by virtue of the particular network they use.
• Online only: cryptocurrencies are digital coins, so they don't have a physical nature. They therefore do not include paper banknotes or metal coins. All transactions take place online, but gradually they are also becoming a means of payment in physical stores, or a tool to change and withdraw cash (think of ATMs). Not surprisingly, cryptocurrencies are contained in electronic wallets, called wallets. Which correspond to our traditional wallets.

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