Cryptocurrency is produced by the entire cryptocurrency system collectively, at a rate which is prior defined and publicly known.
In centralized banking and economic systems such as the Federal Reserve System, governments control the value of a currency by printing units of fiat money or demanding additions to digital banking ledgers.
However, governments cannot produce units of cryptocurrency and as such, governments cannot provide backing for firms, banks or corporate entities which hold asset value measured in a decentralized cryptocurrency. The underlying technical system upon which all cryptocurrencies are now based was created by the group or individual known as Satoshi Nakamoto.
Topic: [GUIDE] Crypto currency. What is it? (Read 183 times)
Bitcoin might not be first cryptocurrency, I heard that a different cryptocurrency was created in the past its name might be bitgold I don't remember well but it is worse than bitcoin for sure. Cryptocurrency is very exciting revolution.
Ah ok I think I see what you mean, calling bitcoin a currency doesn't even begin to touch the surface of what bitcoin can do, it's a new element. Calling bitcoin a digital currency today would be like calling The Internet the 'digital TV' in the 80's. Is that right?
Thanks!
Do not hesitate to express your opinion about the information. What should I add, and what to remove?
Crypto currency is a special kind of banknotes, which is not issued by the national bank of any state, but by an electronic payment system. This technology appeared relatively recently - in the late 2000s, so many financial experts still distrust it, nevertheless, operations with crypto-currencies are capable of generating tangible revenue.
How did the first crypto currency come into being?
Once the world learned about the Internet and began to actively develop it, electronic money quickly began to appear, which were intended to replace the "real" ones. Several years ago, payment systems became a technological breakthrough, and today electronic transfers, wallets and cards have become a part of our life. However, here the financial revolution as such did not happen - at the heart of payment systems lay all the same traditional currencies. The beginning of fundamental changes in the world of money was the emergence of the crypto currency. In the distant 2008, a certain Satoshi Nakamoto laid out in open access the protocol developed by him for the interaction of computers in the network with blocking technologies. This was the moment of the birth of the first crypto currency - Bitcoin.
The first electronic purse with bitcoins was launched on January 9, 2009, however, it functioned only in the test mode. Almost the whole year, the elimination of errors and improvement of the functionality of the system continued, in particular, the service began to support the Linux OS and the API appeared, which made it possible for its use by third parties.
The first step towards the popularity of the crypto currency was the opening of the forum in November 2009, before that Bitcoin was known only to a narrow circle of people, most of whom were familiar to the creators of the service. The increase in the number of users revealed small vulnerabilities in the security system, however, they were quickly eliminated.
Full value currency bitcoin was only in May 2010 - it was then the first purchase was made. The buyer was the American Laszlo Henec, he traded 10 thousand bitcoins for two pizzas. Then this deal seemed successful, because it was possible to get something for the virtual currency, but if Laszlo did not buy pizza and saved the money on the account, now they could get about $ 7 million for them. The ability to exchange virtual monetary units for real ones the goods became the most important events for the crypto currency.
Why is the crypto currency so popular?
The popularity of crypto currency is conditioned by the requirements of the time. In the century of ubiquitous dissemination of information technologies, universal means of payment that could be calculated in electronic space without binding to a certain country or institution are in great demand. Such a tool became the crypto currency.
For the calculation of virtual money, only their number is used, so the crypto currency does not need a real expression. Digital payment means are protected by a cryptographic code, which makes them more reliable in comparison with "real" money. And because of the absolute decentralization of the emission of virtual coins, they can neither be counterfeited nor prohibited.
How does the crypto currency work?
The mechanism of working with crypto currencies is very simple, if we say in simple words. When you acquire a crypto currency at a stock exchange or an online currency exchange for traditional money, you can perform a variety of manipulations and not be in the focus of the regulatory financial authorities of your country and the world as a whole.
Nobody can track your financial transactions. For this, cryptographic (mathematical) hash codes were invented. Each financial transaction is assigned its own hash code. It is unique, protected from forgery, and is not used again.
Important!
Every form of crypto currency there is a restriction of output. That is, a certain limit is set, which provides protection from excessive emissions
Crypto currency storage
Crypto-currencies are placed on special electronic purses, paper money does not have such money. There are many wallets that feature functionality, support for different operating systems, or work online, as well as the degree of protection. You can conduct transactions with Bitcoin in WebMoney.
You can exchange crypto-currencies through special services or exchanges where users place their orders, indicating the rate and the required amount, and then wait until someone responds to their offer.
Advantages and disadvantages of crypto currency.
We can identify 4 weighty advantages
-Security.
-Ease of use.
-Informativeness.
-Anonymity and independence.
And some disadvantages
-If the user has lost the password from his electronic wallet, it means for him the loss of all funds in it. Since there is no control over the conduct of transactions using digital money, there are no guarantees of their safety.
-Crypto currency is characterized by high volatility due to the specifics of its circulation.
-In the case of crypto-currency, attempts may be made by various negative influences from the national regulators of monetary circulation.
-As over time the process of obtaining cryptonyms becomes more and more complicated, the mining with the help of individual equipment becomes less and less profitable.
Summarizing, we can say that the crypto currency is a new word in monetary circulation. Its occurrence is conditioned by the needs of the time. Despite the fact that crypto money does not have a real expression, they can almost equally with traditional currency units participate in various operations on the market.
You also can check other my topics.
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How did the first crypto currency come into being?
Once the world learned about the Internet and began to actively develop it, electronic money quickly began to appear, which were intended to replace the "real" ones. Several years ago, payment systems became a technological breakthrough, and today electronic transfers, wallets and cards have become a part of our life. However, here the financial revolution as such did not happen - at the heart of payment systems lay all the same traditional currencies. The beginning of fundamental changes in the world of money was the emergence of the crypto currency. In the distant 2008, a certain Satoshi Nakamoto laid out in open access the protocol developed by him for the interaction of computers in the network with blocking technologies. This was the moment of the birth of the first crypto currency - Bitcoin.
The first electronic purse with bitcoins was launched on January 9, 2009, however, it functioned only in the test mode. Almost the whole year, the elimination of errors and improvement of the functionality of the system continued, in particular, the service began to support the Linux OS and the API appeared, which made it possible for its use by third parties.
The first step towards the popularity of the crypto currency was the opening of the forum in November 2009, before that Bitcoin was known only to a narrow circle of people, most of whom were familiar to the creators of the service. The increase in the number of users revealed small vulnerabilities in the security system, however, they were quickly eliminated.
Full value currency bitcoin was only in May 2010 - it was then the first purchase was made. The buyer was the American Laszlo Henec, he traded 10 thousand bitcoins for two pizzas. Then this deal seemed successful, because it was possible to get something for the virtual currency, but if Laszlo did not buy pizza and saved the money on the account, now they could get about $ 7 million for them. The ability to exchange virtual monetary units for real ones the goods became the most important events for the crypto currency.
Why is the crypto currency so popular?
The popularity of crypto currency is conditioned by the requirements of the time. In the century of ubiquitous dissemination of information technologies, universal means of payment that could be calculated in electronic space without binding to a certain country or institution are in great demand. Such a tool became the crypto currency.
For the calculation of virtual money, only their number is used, so the crypto currency does not need a real expression. Digital payment means are protected by a cryptographic code, which makes them more reliable in comparison with "real" money. And because of the absolute decentralization of the emission of virtual coins, they can neither be counterfeited nor prohibited.
How does the crypto currency work?
The mechanism of working with crypto currencies is very simple, if we say in simple words. When you acquire a crypto currency at a stock exchange or an online currency exchange for traditional money, you can perform a variety of manipulations and not be in the focus of the regulatory financial authorities of your country and the world as a whole.
Nobody can track your financial transactions. For this, cryptographic (mathematical) hash codes were invented. Each financial transaction is assigned its own hash code. It is unique, protected from forgery, and is not used again.
Important!
Every form of crypto currency there is a restriction of output. That is, a certain limit is set, which provides protection from excessive emissions
Crypto currency storage
Crypto-currencies are placed on special electronic purses, paper money does not have such money. There are many wallets that feature functionality, support for different operating systems, or work online, as well as the degree of protection. You can conduct transactions with Bitcoin in WebMoney.
You can exchange crypto-currencies through special services or exchanges where users place their orders, indicating the rate and the required amount, and then wait until someone responds to their offer.
Advantages and disadvantages of crypto currency.
We can identify 4 weighty advantages
-Security.
-Ease of use.
-Informativeness.
-Anonymity and independence.
And some disadvantages
-If the user has lost the password from his electronic wallet, it means for him the loss of all funds in it. Since there is no control over the conduct of transactions using digital money, there are no guarantees of their safety.
-Crypto currency is characterized by high volatility due to the specifics of its circulation.
-In the case of crypto-currency, attempts may be made by various negative influences from the national regulators of monetary circulation.
-As over time the process of obtaining cryptonyms becomes more and more complicated, the mining with the help of individual equipment becomes less and less profitable.
Summarizing, we can say that the crypto currency is a new word in monetary circulation. Its occurrence is conditioned by the needs of the time. Despite the fact that crypto money does not have a real expression, they can almost equally with traditional currency units participate in various operations on the market.
You also can check other my topics.
[GUIDE] CoinMarketCap. What is it?
Improve your knowledge of cryptocurrencies along with books!
How does knowledge of English relate to receiving Merit?
Main information about the most popular exchanges!
🔥🔥🔥The most useful forum topics/Bitcointalk navigation thread -Updated!🔥🔥🔥
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