Crypto Currency Vs Fiat Currency

The value of bitcoin has risen this year, even exceeding one ounce of gold. There are also new cryptocurrencies on the market, which is even more amazing, with the value of cryptocurrencies reaching over one hundred billion. On the other hand, the long-term outlook for cryptocurrency is somewhat vague. There are disputes over the lack of progress among its main developers, which make it less attractive as a long-term investment as a payment system.

Bitcoin:

Still, the most popular bitcoin is the cryptocurrency that started it all. It is currently the largest market capitalization – about $ 41 billion – has existed for the last 8 years. Bitcoin is widely used all over the world, and it is still not easy to use the weakness in its current method. Both as a payment system and as a stored value, Bitcoin allows users to easily receive, send and receive bitcoins. The concept of blockchain is the basis on which bitcoin is based. You need to understand the concept of blockchain to understand what cryptocurrencies are all about.

Simply put, a blockchain is a database distribution that stores each transaction on the network as a piece of data called a “blockchain”. Every user has copies of the blockchain, so when Alice sends 1 bitcoin to Mark, everyone on the network knows it.

Litecoin:

One of the alternatives to Bitcoin, Litecoin tries to solve many problems that keep Bitcoin. It is not as flexible as Ethereum in terms of value, which is largely due to strong user acceptance. It should be noted that Charlie Lee, a former employee of Google, runs Litecoin. He is transparent with everything he does with Litecoin, he is quite active on Twitter.

Litecoin has long been Bitcoin’s second violin, but things started to change in early 2017. First, Litecoin was adopted by Coinbase in conjunction with Ethereum և Bitcoin. Next, Litecoin fixed the Bitcoin issue by adopting Segregated Witness technology. This allowed him to reduce transaction fees and do more. However, the deciding factor was when Charlie Lee decided to focus solely on Litecoin, even leaving Coinbase, where he was chief engineering officer, for Litecoin only. As a result, the price of Litecoin has risen in recent months, with the strongest factor being that it could be a real alternative to bitcoin.

Ethereum:

Superstar developer Vitalik Buterin has thought of Ethereum, which can do everything Bitcoin can. However, its purpose is primarily to be a platform for creating decentralized applications. Blockchains are where the differences between the two are. Basically, a Bitcoin blockchain records a type of contract that indicates whether funds have been transferred from one digital address to another. However, there is a significant extension to Ethereum as it has a more advanced language script և a more sophisticated, wider range of applications.

Projects began to sprout on top of Ethereum as developers began to notice its better qualities. Some have even raised millions of dollars through the sale of the sign crowd, a trend that continues to this day. The fact that you can build great things on the Ethereum platform makes it almost the same as the Internet. This led to a sharp rise in prices, so if you had bought Ethereum for a hundred dollars earlier this year, it would not have been valued at almost $ 3,000.

Monero

Monero aims to resolve the issue of anonymous transactions. Even if this currency was perceived as a method of money laundering, Monero intends to change it. In essence, the difference between Monero and Bitcoin’s is that Bitcoin stands out with a transparent blockchain for each publicly registered transaction. With Bitcoin, anyone can see where the money was transferred. However, there are some imperfect anonymities about bitcoin. In contrast, Monero has a non-transparent, non-transparent transaction method. No one sells this method very well, but since some people love privacy for any purpose, Monero will stay here.

Zcash:

Unlike Monero, Zcash also aims to solve the problems that Bitcoin has. The difference is that instead of being completely transparent, Monero is only partially public with its blockchain style. Zcash aims to solve the problem of anonymous transactions. After all, not everyone likes to show how much money they actually spent on Star Wars souvenirs. So the bottom line is that this type of cryptocurrency really has an audience, a demand, and it’s hard to say which cryptocurrency that focuses on privacy will eventually come out on top of the pile.

Banker:

Known as the “smart sign”, Bancor is the standard for a new generation of cryptocurrencies that can hold more than one token in reserve. Bancor mainly tries to facilitate trading, manage, create tokens by increasing their liquidity, allowing them to have an automated market price. Bancor currently has a product that includes wallet և smart sign creation. There are also features in the community, such as statistics, profiles, and discussions. In short, the Bancor Protocol makes it possible to discover built-in prices, such as the liquidity mechanism of smart contracts, through the innovative backup mechanism. With a smart contract, you can instantly liquidate or buy any token in Bankor Reserve. With Bancor you can easily create new cryptocurrencies. Who would not want that now?

EOS:

Another competitor to Ethereum, EOS, promises to address the scale of Ethereum by providing a range of tools that will run more powerfully to build applications on the platform.

Thesis:

As an alternative to Ethereum, Tezos can be updated by mutual agreement without much effort. This new blockchain is decentralized in the sense that it is self-governing through the creation of real digital collaboration. It simplifies a mathematical technique called formal verification. Definitely a big investment in the coming months.

Verdict:

It is incredibly difficult to predict which Bitcoin will be the next superstar in the list. However, user acceptance has always been a key success factor when it comes to cryptocurrencies. Both Ethereum and Bitcoin have it, and even though there is a lot of support from early adopters of every cryptocurrency on the list, some still have to prove their worth. However, these are the ones to invest in and beware of in the coming months.

Cryptocurrencies seem to be the hottest investment commodities. Eavesdrop on any conversations your friend has about bitcoins. The whole workplace conversation is about virtual currencies. The talk of online chats these days is about cryptocurrency. Due to the growing popularity of these virtual currencies, a silent economic revolution is taking place.

Of course, if you want to grow it in the world of bitcoins, you have to have a nose for news. Now that you have reduced your list to a few cryptocurrencies, you need to analyze, decide which ones have a higher potential for faster trading than the rest. This is why you need to keep up with the news. You will scan information on blockchain trends from various sources. These days, several business channels are devoting exceptional time to these trends.

One potential source of information may be others who trade in virtual currencies. Get acquainted (gain, obtain) with present-day techniques that came from Good Trading և Select their brains for valuable information. The Internet is a great way to connect with such experts. You can find them through online forums. Keep in touch with them regularly. Similarly, you can subscribe to sites that specialize in cryptocurrency trading. This way you can ensure that you do not miss any important news.

Good sources of information on cryptocurrencies can be obtained from various organizations. They offer a lot of information about the blockchain ecosystem. The website of this organization offers very detailed information about digital currencies.

Keep your coins safe

Security is one of the most important part of your cryptocurrency business. Since you will need to create և use multiple passwords for different accounts, it is recommended that you use a password manager. Make sure you have a strong antivirus on your computer. A good firewall is also a must to ensure the perfect security of your data և online transactions.

Another important thing to keep in mind is to never disclose how much you have traded in cryptocurrencies online. This is true both online and offline. You should also never make a mistake by clicking on the links of any of the crypto groups. You can so easily end up downloading a virus on your computer. Most of the pages in these groups are known to contain viruses.

If you are planning to invest in cryptocurrency for the first time, we suggest you at least get a basic idea of ​​the industry. In this article we are going to give you 5 tips and tricks to help you become a better investor. Following these tips will make it easier for you to succeed as a beginner.

1. Look for reputable news sources

You will find different opinions about the world of cryptocurrency. Some people think that krypton is nothing but fashion, while others think that it is a great investment, especially if you want to invest your money in the long run.

If you are confident that you can benefit from Crypto, you should look to reliable sources and do not listen to non-believers. To be successful as an investor, you need to consider some facts and then continue to invest your money wisely.

2. Be prepared for instability

Unlike regular currencies, cryptocurrencies are not very stable. A few months ago, one of the most popular cryptocurrencies, Bitcoin, was worth about $ 40,000. But now it has dropped again to 300 $ 30,000. So what you need to do is make your decision wisely. If you become greedy, you can suffer huge losses.

Even if you ask crypto traders, they will say that even they do not have mastery of art. So you have to be careful when it comes to investing in crypto, as cryptocurrencies are quite volatile.

3. Consider other Altcoins

As for cryptocurrency, you are not limited to bitcoins. Therefore, it is not a good idea to put all your eggs in one basket. In other words, you have to invest your money in other types of cryptocurrencies.

So all you have to do is do your homework եք find out which ones do well. In other words, you have to choose the top 5 cryptocurrencies: invest your money in them.

4. Learn about hot: cold wallets

Although krypton is a digital currency, you can still keep it online in your hot wallets. But if you are just starting out, you can join online wallets as they are quite useful and versatile.

On the other hand, it is true that cold wallets protect against hackers. So, if you want to diversify your assets, we suggest you get acquainted with both hot and cold wallets.

5. Be vigilant

Although cryptocurrencies have higher security standards than regular currency, we suggest following the precautionary measures. So what you need to do is be careful when it comes to investing heavily in this type of digital currency.

You need to find out about different ways to handle your transactions և see how you can effectively manage your cryptocurrency responsibly.

Conclusion

In short, you can follow these 5 tips and tricks if you want to be successful as a cryptocurrency trader or investor.

There are different types of cryptocurrency wallets that allow users to hold and access their digital currencies in different ways. The question that arises in this context is how secure these wallets are. Before embarking on the security aspect, it is helpful to understand the different types or types of cryptocurrency wallets that exist today.

Cryptocurrency wallet. Species և species

These wallets can be broadly classified into 3 categories.

• Software wallets
• hardware wallets և:
• Paper wallets

Cryptocurrency software wallets can again be divided into desktop, online և mobile wallets.

• Desktop software wallets. These wallets are designed to be downloaded and placed on desktops and laptops. This type offers the highest level of security, or their access is limited to the computer where they are installed. Moreover, if the computer is broken or infected with a virus, there is a possibility that the person may lose all his money.
• Online software wallets. This range of cryptocurrency wallets works in the Cloud. Thus, they can be easily accessed from any computer device, from any geographical location. In addition to convenience, these types of digital wallets store personal keys online. The keys are even controlled by third parties. this makes them easily vulnerable to hacking and theft.
• Mobile application wallets. Unlike the other two types, mobile wallets run on smartphones through an app. They can be easily used everywhere, including in retail stores and malls. This range of wallets is usually much simpler և smaller than a regular desktop to fit in a very limited area of ​​mobile phones.

The difference between hardware and software wallets

Digital wallets differ from software wallets in that they hold the user’s personal keys. Hardware wallets store user keys on a hardware device (such as a USB stick). So because the keys are stored online, these wallets offer extra security. Moreover, hardware wallets are easily compatible with many online interfaces – they can work with different currencies. This variety of cryptocurrency wallets is also easy to trade. As a user, you just need to connect the device to any computer connected to the Internet, before entering the PIN, transfer the currency և just confirm the transaction. Your digital currency is stored online through hardware wallets, so the risk factor or security concern is also much less.

Paper digital wallets. This range of digital wallets is also convenient to use and provides a high level of security. The term “paper wallet” simply refers to the printing of a user’s “public” or “private” keys. However, depending on the case, it may also refer to a software application designed to create secure keys before printing.

Sweeping with paper wallets

Using paper wallets is somewhat easier. To transfer any cryptocurrency to your paper wallet, simply transfer the money from the software wallet to the public address displayed on your paper wallet. Similarly, when you want to spend or withdraw money, simply transfer funds from a paper wallet to your software wallet. This procedure is popularly called “sweeping”.

Cleaning can be done either manually by entering personal keys or scanning a QR code in a paper wallet.

How secure are cryptocurrency wallets?

Different types of digital wallets offer different levels of security. The security aspect mainly depends on two factors.

• The type of wallet you use: hardware, paper, online, desktop or mobile
• Selected service provider

Needless to say, it is much safer to keep currencies offline than online. There is simply no way to ignore security, no matter which wallet you choose. If you lose your personal keys, all the money in your wallet will be lost. On the other hand, if your wallet breaks or you transfer funds to a fraudster, it will not be possible to recover the transaction or withdraw that amount.

Investing in cryptocurrency is a smart business idea, so using an appropriate wallet is inevitable. You just have to be more discriminating with the help you render toward other people.

Whether there were any corrections in the cryptocurrency market in 2018, everyone agrees that the best is yet to come. There have been many actions in the market that have changed the tide for the better. With the right amount of analysis and optimism, anyone investing in the crypto market can make millions. The cryptocurrency market is here to stay. In this article, we give you five positive factors that can drive further innovation in cryptocurrencies և market value.

1. Innovation in scaling

Bitcoin is the first cryptocurrency on the market. It has the maximum number of users և the highest value. It dominates the entire value chain of the cryptocurrency system. However, it is not without problems. Its main drawback is that it can make only six to seven transactions per second. By comparison, credit card transactions average several thousand per second. Apparently, there is an opportunity to improve the scale of transactions. With the help of blockchain transaction networks, it is possible to increase the volume of transactions per second.

2. Legal ICOs

While there are cryptocurrencies of stable value in the market, newer coins are being created to serve a specific purpose. Coins, such as IOTA, are designed to help the Internet Of Things market exchange energy currencies. Some coins address the issue of cyber security by providing encrypted digital vaults to store money.

New ICOs come up with innovative solutions that disrupt the existing market and bring new value to transactions. They also gain prestige in the market with their easy-to-use exchanges and reliable background operations. They innovate both in technology and in mining, using specialized equipment for the financial market, giving investors more freedom in exchange options.

3. Clarity of regulation

In the current scenario, most governments are exploring the impact of cryptocurrencies on society and how their benefits can be accumulated in the community as a whole. One can expect reasonable conclusions from the results of the studies.

Few governments are already on the path to legalizing and regulating crypto markets, like any other market. This will prevent illiterate retailers from losing money and protect them from harm. It is expected that the possible regulations that stimulate the growth of cryptocurrencies will appear in 2018. This will potentially pave the way for widespread use in the future.

4. Increased usage

There is tremendous excitement in the application of blockchain technology in almost every field. Some startups come up with innovative solutions, such as digital wallets, cryptocurrency debit cards, and more. This will increase the number of traders who are willing to trade in cryptocurrencies, which in turn will increase the number of users.

The reputation of crypto assets as a means of transactions will be strengthened as more people trust this system. Or some startups can not survive, they will positively contribute to the overall health of the market by creating competition and innovation.

5. Investments from financial institutions

Many international banks are following the cryptocurrency scene. This can lead to institutional investors entering the market. The influx of significant institutional investment will contribute to the next phase of cryptocurrency growth. It has captured the imagination of many banks and financial institutions.

As the number of surprises and barriers around cryptocurrencies decreases, there will be more absorption by traditional investors. This will lead to the great dynamism and liquidity needed for any growing financial market. Cryptocurrency will become the de facto currency of transactions all over the world.

The big question is how to get bitcoins.

After learning the basics of what bitcoin is, how your wallet actually works, you may want to enter the world of digital currency and get bitcoin for yourself. So the big question arises in your head. How can I get bitcoins?

Becoming difficult.

Once you know the origins of each bitcoin based mining process, you will believe that the best way to get them is to join this mining process. The thing is that it has become very difficult, as the popularity of cryptocurrency is growing rapidly.

Sell ​​goods or services.

Each bitcoin comes as a result of the previous transaction. So the way to get them when you don’t have them is to get a deal from someone else when you buy them for cash or new bitcoins mining.

When you know someone who uses bitcoins, you can ask them to get bitcoins. If you do not know anyone who owns them, you can get bitcoins by offering other types of transactions with another bitcoin user, resulting in you being paid with bitcoins. The alternative is to extract them yourself.

Mining.

If you can not buy bitcoins from others, you can get them by mining. The term mining here means solving a complex mathematical problem that aims to approve the transactions of other individuals. In return, you are rewarded with bitcoins. Receiving bitcoins is sometimes free, but there may be a charge for sending them, depending on the online platform you use. Before you get into bitcoin mining, you need to understand that it is not an easy way to get bitcoins, it requires some technological knowledge that may not be practical for you.

Buy.

In case you do not know anyone who has bitcoins, you have nothing to sell to exchange bitcoins, there is a way to buy bitcoins. There are several online platforms that sell bitcoins through a process called trading. Here are some ways to buy bitcoins.

Buy bitcoins in person.

There are online markets where you can buy bitcoins from person to person. You can pay these people in cash or in other ways. The good thing is that you և seller can arrange the payment method: cash in person, cash on deposit, bank transfer, PayPal և etc. The key here is to find someone you trust. A good tip is to use escrow online service, this way you can protect yourself from any kind of fraud. The good thing about this online backup platform is that everyone has to upload their scanned ID, this ensures security during transactions.

Buy bitcoins from the stock և outlet.

Bitcoin exchanges or points are mainly online services that make it easier for buyers and sellers to trade bitcoins. All you need to be a part of it is to create an account և get your identity before buying or selling bitcoins.

Buy bitcoins through ATMs.

Some cities around the world offer physical bitcoin ATMs. You just get your bitcoins through them using the local fiat currency. Governments regulate the use of these ATMs for security purposes. Sometimes it can be difficult to find a bitcoin ATM near your location, as even the place where they are placed is regulated.

Cryptocurrencies are the latest “big thing” in the digital world and are now recognized as part of the monetary system. In fact, enthusiasts have labeled it a “money revolution.”

Simply put, cryptocurrencies are decentralized digital assets that can be exchanged between users without the need for central government, most of which are created through a special computing technique called “mining”.

The acceptance of currencies such as the US dollar, the British pound and the euro as legal tender is due to the fact that they were issued by the central bank. Digital currencies, however, such as cryptocurrencies, are not based on public confidence in the issuer. As such, several factors determine its value.

Factors that determine the value of cryptocurrencies

Principles of a free market economy (mainly supply և demand)

Supply և Demand is a major determinant of the value of anything, including cryptocurrencies. This is because if more people are willing to buy cryptocurrency and others are willing to sell, the price of that cryptocurrency will rise and vice versa.

Mass adoption

The mass adoption of any cryptocurrency could push its price higher on the moon. This is due to the fact that many cryptocurrencies have their supply to a certain extent, ըստ, according to economic principles, an increase in demand without a corresponding increase in supply will lead to an increase in the price of the product.

Many cryptocurrencies have invested more resources in securing their widespread acceptance, and some have focused on the use of their cryptocurrencies in urgent personal matters, such as day-to-day events, in order to make them indispensable in everyday life.

Fiat inflation

If a fiat currency, such as the US dollar or the GBP, inflates, its price rises and its purchasing power decreases. Then it will lead to an increase in cryptocurrencies (let’s use Bitcoin as an example) over that fiat. The result is that you will be able to get more of that Fiat with each bitcoin. In fact, this situation was one of the main reasons for the rise in the price of Bitcoin.

Fraud և Cyber ​​attack history

Fraudsters և hackers և are the main factors influencing the value of cryptocurrencies, as they are known to cause sharp fluctuations in estimates. In some cases, the cryptocurrency support team may be fraudsters. they will raise the price of cryptocurrency to undoubtedly attract individuals, և when their hard-earned money is invested, the price is reduced by fraudsters, who then disappear without a trace.

So you need to beware of cryptocurrency scams before investing your money.

Some other factors to consider that affect the value of cryptocurrencies include:

• How to keep cryptocurrency, as well as its usefulness, security, ease of acquisition, cross-border acceptance

• The strength of the cryptocurrency support community (this includes funding, innovation, and the loyalty of its members)

• Low cryptocurrency risks perceived by investors և users

• News mood

• Cryptocurrency market liquidity և instability

• Country regulations (this includes the ban on cryptocurrencies և ICOs in China ընդուն its acceptance as a legal tender in Japan)

Cryptocurrency is a digital alternative to using credit cards or cash to make daily payments in different situations. It continues to be a viable alternative to traditional payment methods, but it still needs to become more stable before it can be fully welcomed by ordinary people. Let’s look at some of the many benefits of using cryptocurrency.

Fraud – Any fraudulent problem is minimized because the cryptocurrency is digital, which can prevent reverse or counterfeit payment. This type of transaction can cause problems with other traditional payment methods, such as credit cards, due to refunds.

Identity Theft – When using cryptocurrency, there is no need to provide personal information that could lead to identity theft. If you use a credit card, the store provides a lot of information about your credit line, even in the case of a very small transaction. In addition, credit card payment is based on a drawback transaction where a certain amount of money is required from the account. In case of payment in cryptocurrency, the transaction is based on push, which allows the account holder to send only the exact amount of the payment, without additional information.

Versatile use. Cryptocurrency payment can be easily made under certain conditions. A digital contract can be made to make a payment on a future date, to refer to external facts, or to obtain third-party approval. Even with a special contract, this type of payment is still very fast and efficient.

Easy access. The use of cryptocurrency is widely available to anyone with access to the Internet. It is very popular in some parts of the world, for example in Kenya, where almost a third of the population uses a digital wallet through a local microfinance service.

Low Fees – It is possible to make a cryptocurrency transaction without paying extra fees or charges. However, if a digital wallet or third-party service is used to store the cryptocurrency, there may be a small fee.

International trade. This type of payment is not subject to country specific fees, transaction charges, interest rates or exchange rates, which makes cross-border transfers relatively easy.

Adaptability. With almost 1,200 unique types of cryptocurrencies on the world market, there are many payment options available to suit your specific needs. Although there are many ways to use coins for everyday use, there are some that are designed for a specific use or industry.

In the secret world of blockchains, side chains, mining – cryptocurrencies, terminology continues to accumulate for minutes. While the introduction of new financial conditions in the already tangled world of finance seems unfounded, cryptocurrencies offer a much-needed solution to one of the biggest ills in the money market today – the security of transactions in the digital world. Cryptocurrency is a defining and disruptive innovation in the fast-paced world of financial technology, which is an appropriate response to the need for a secure medium of exchange in the days of virtual transactions. When transactions are just numbers և numbers, cryptocurrency offers to do just that.

The term’s most basic form of cryptocurrency is proof of the concept of alternative virtual currency, which promises secure, anonymous transactions with online peers. Wrong name is more property than real currency. Unlike everyday money, cryptocurrency models operate without a central government as a decentralized digital mechanism. In the distributed cryptocurrency mechanism, money is issued, managed, and approved by a network of collective community partners, whose ongoing activities are known as: mining on a peer car. Successful miners also receive coins as a token of their time and resources. After use, transaction information is transmitted to the network blockchain under a public key, not allowing each coin to be spent twice by the same user. A blockchain can be considered as a cash register. Coins are provided with a password-protected digital wallet.

In the world of digital currency, the supply of coins is predetermined, without manipulation, by any individual, organization, government agency or financial institution. The cryptocurrency system is known for its speed, as transactions with digital wallets can materialize cash in a matter of minutes compared to a traditional banking system. It is also largely irreversible with the project, further reinforcing the idea of ​​anonymity and eliminating further opportunities to trace the money to its original owner. Unfortunately, the salient features of speed, security, and anonymity have also made cryptocurrencies a way for many illegal transactions.

Like the real money market, currency exchange rates fluctuate in the digital coin ecosystem. Due to the limited number of coins, as the demand for the currency increases, the value of the coins increases. Bitcoin is by far the largest and most successful cryptocurrency with a market capitalization of $ 15.3 billion, occupying 37.6% of the market, and currently stands at $ 8,997.31. Bitcoin entered the currency market in December 2017, selling for $ 19,783.21 per coin, before the sudden fall of 2018. The decline is partly due to the growth of alternative digital currencies such as Ethereum, NPCcoin, Ripple, EOS, Litecoin and MintChip.

Because of their strictly coded supply constraints, cryptocurrencies are considered to follow the same principles of economics as gold. Price is determined by limited supply and demand fluctuations. With constant fluctuations in exchange rates, their stability still remains. Therefore, investing in virtual currencies is now more speculation than the everyday money market.

This digital currency has been an indispensable part of technological breakdowns since the Industrial Revolution. From the point of view of a casual observer, this ascent may seem instantly exciting, threatening, and mysterious. While some economists remain skeptical, others see it as a lightning revolution in the monetary industry. Conservatively, digital coins intend to displace about a quarter of the national currencies in developed countries by 2030. This has already created a new class of assets, along with the traditional world economy, նոր a new investment package will come from cryptocurrencies in the coming years. Recently, bitcoin may decline to attract attention to other cryptocurrencies. But that does not signal a cryptocurrency crash. While some financial advisers emphasize the role of governments in pressuring the secret world to regulate central governance, others insist on the continuation of the current free flow. The more common cryptocurrencies are, the more they are controlled and regulated. A general paradox that disrupts the digital note – the main purpose of its existence in the destruction. In any case, the lack of intermediaries է makes it significantly more attractive to investors և causes the daily trading to change dramatically. Even the International Monetary Fund (IMF) fears that cryptocurrencies will move central banks into international banking in the near future. After 2030, regular trading will dominate the crypto supply chain, which will offer less communication, more economic value between technologically skilled buyers and sellers.

If cryptocurrency aspires to be an essential part of the existing financial system, it must meet very different financial, regulatory and social standards. It must be protected from hackers, consumer-friendly, and strictly protected to offer its fundamental benefit to the core monetary system. It should protect the anonymity of users, not being a wave of money laundering, tax evasion, internet fraud. Because they are mandatory for the digital system, it will take several years to understand whether cryptocurrency will be able to compete with the real world currency in full swing. Whether this is likely to happen, the success (or lack thereof) of cryptocurrency in meeting challenges will determine the fate of the monetary system in the coming days.

Bitcoin is a virtual currency. It does not exist in the physical form of the currency and coin with which we are accustomed to exist. It does not even exist in the physical form of monopoly money. These are electrons, not molecules.

But consider how much cash you personally spend. You get a salary that you take to the bank, or it is automatically deposited without even seeing the paper on which it is not printed. Then you use a debit card (or checkbook if you are an old schoolboy) to access those funds. At best, you see 10% of it in cash, in your own pocket or pocket. So it turns out that 90% of the resources you have are virtual – electrons in a spreadsheet or database.

But wait, these are US funds (or any country you come from), safe in the bank, guaranteed with full FDIC trust, up to about $ 250,000 per account, right? Well, not right. Your financial institution may require you to keep only 10% of your deposit. In some cases it is less. It lends the rest of your money to other people for up to 30 years. It charges them for the loan,: charges you for the privilege that allows them to convert it.

How is money made?

Your bank can make money by lending them.

Say you have invested $ 1,000 in your bank. After that, they give $ 900. Suddenly you have $ 1,000 and another $ 900. Magically, $ 1,900 floats around where there used to be only a grand.

Now say that your bank gives 900 of your dollars to another bank. That bank, in turn, gives $ 810 to another bank, which then gives $ 720 to the customer. Puff $ 3,430 at a glance, almost $ 2,500 created out of nothing as long as the bank follows the rules of your government’s Central Bank.

Creating Bitcoin is as different from creating bank funds as it is about creating cash from electrons. It is controlled not by the central bank of the government, but by the consent of its users: nodes. It is not created by a limited mint in a building, but rather by distributed open source software: calculations. And for creation you need actual work. More on that soon.

Who Invented BitCoin?

The first BitCoins were in the 50-bit block (“Genesis Block”), created by Satoshi Nakomoton in January 2009. At first it really had no value. It was just a toy of a cryptographer based on a paper published by Nakomoton two months ago. Nakotmoto is apparently a fictional name. no one seems to know who he or they are.

Who is behind all this?

When Genesis Block was created, BitCoins have been around ever since, doing all the transaction tracking for all BitCoins as a kind of public log. The nodes / computers that perform the log calculations are rewarded for this. For each set of successful calculations, the node is awarded a certain amount of BitCoin (“BTC”), which is then newly formed in the BitCoin ecosystem. Hence the term “BitCoin Miner” as the process creates a new BTC. Բ As the supply of BTC increases, քանակ the number of transactions increases, the work required to update the public register becomes more and more difficult. As a result, the number of new BTCs in the system is projected to be around 50 BTCs (one block) every 10 minutes worldwide.

Although the computing power of BitCoin mining is currently growing exponentially, so is the complexity of the math problem (which, by the way, also requires some guessing) or the “proof” needed for mining. BitCoin ավորել Manage transaction books at any time. Thus, the system still generates only 50 BTC blocks every 10 minutes or 2106 blocks every 2 weeks.

So, in a way, everyone is behind it, that is, all the nodes in the network are behind every BitCoin story.

How much is it? Where is it?

There is a maximum number of BitCoins that can ever be created, and that number is 21 million. According to the Khan Academy, that number is expected to increase around 2140.

12.1 million BTC were in circulation this morning

Your own BitCoin is stored in a file (your BitCoin wallet) in your own storage on your computer. The file itself indicates how much BTC you have, և it can travel with you on a mobile device.

If that file in your wallet’s password is lost, so is your BitCoin resource supply. And you can not return it.

How much does it cost?

Value varies depending on how much people think it’s worth, just as in the case of “real money” exchanges. But since there is no central government trying to keep value at a certain level, it can be more dynamic. The first BTC was basically worth nothing at the time, but that BTC still exists. As of 11:00 a.m. on December 11, 2013, the public price was $ 906.00 per BitCoin. When I finished writing this sentence, it was $ 900.00. At the beginning of 2013, the cost was about $ 20.00 US. As of November 27, 2013, it was valued at more than $ 1,000.00 per US BTC. So at the moment it is kind of volatile, but it is expected to be adjusted.

The total value of BitCoin at the end of this sentence is about $ 11 billion.

How can I get some?

First, you need to have a BitCoin wallet. This article has links to get one.

Then one of the ways is to buy from another private party, like these guys on Bloomberg TV. One way is to buy on the stock exchange, for example, Mount Goks.

And last but not least, the headline made you read this article. That’s far beyond the scope of this article. But if you have a few thousand extra dollars, you can buy quite a lot of equipment.

How can I spend it?

There are hundreds of merchants of all sizes who pay for BitCoin, from cafes to car dealers. There is even a BitCoin ATM in Vancouver, British Columbia, to convert your BTC to cash in Vancouver, BC.

And so?

Money has a long history, dating back thousands of years. Some time ago, legend told us that Manhattan Island was bought for vampires – shrimp, etc. In the early years of the United States, various banks printed their own currency. During a recent visit to Salt Spring Island, British Columbia, I spent a currency that was only good on a beautiful island. The common theme among them was the agreement between its users that the currency has value. Sometimes that value was directly related to something as solid as gold. In 1900, the United States tied its currency directly to gold (the “Gold Standard”); in 1971, it ended that bond.

Currency is now traded like any other commodity, and the value of a particular country’s currency can be strengthened or reduced through the actions of the central bank. BitCoin is an alternative currency that is also traded. However, its supply is limited to և known և (as opposed to physical currency) and the history of each BitCoin. Its perceived value, like all other currencies, is based on its usefulness and confidence.

As a currency, BitCoin is nothing new in Creation, but it is certainly a new way to make money.