Cryptocurrency or crypto-currency (Saxon crypto-currency) is a virtual currency used to exchange goods and services through a system of electronic transactions, without going through any intermediaries. The first cryptocurrency to start trading was Bitcoin in 2009, and since then many others have emerged, with features such as Litecoin, Ripple, Dogecoin and many others.
What is the advantage?
When comparing cryptocurrency to card money, the difference is:
They are decentralized: they are not controlled by banks, governments and financial institutions
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, stored in a personal wallet with non-transferable codes known only to you.
It has no intermediaries: transactions are done from one person to another
Fast transactions: they charge interest for sending money to another country and often take days to confirm; with cryptocurrencies within minutes.
Bitcoins and any other virtual currency can be exchanged for any currency in the world
They cannot be faked because they are encrypted with a sophisticated cryptographic system
Unlike currencies, the value of electronic currencies is subject to the oldest rules of the market: supply and demand. “It’s currently worth over $1,000 and like stocks, that value can go up or down with 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 you can only perform operations within the network of networks.
Bitcoin refers to the currency and protocol and the P2P red that it is based on.
So what is Bitcoin?
Bitcoin is a virtual and intangible currency. That is, you cannot touch its shape like with coins or bills, but you can use it as a means of payment like these.
In some countries you can choose to earn money with an electronic debit card page to exchange money for cryptocurrencies like XAPO. In Argentina, for example, we have more than 200 bitcoin terminals.
Undoubtedly, what differentiates Bitcoin from traditional currencies and other virtual means of payment like Amazon Coins, Action Coins is decentralization. Bitcoin is not controlled by any government, organization or financial entity, either state or private, such as the Euro, Central Bank or Dollar which is controlled by the United States Federal Reserve.
In Bitcoin they control the real, indirectly through their transactions, users through exchanges P2 P (Point to Point or Point to Point). This structure and lack of control makes it impossible for any authority to manipulate its value or cause inflation by producing more quantities. Its production and value are based on the law of supply and demand. Another interesting detail about Bitcoin is that it has a cap of 21 million coins, which will be reached in 2030.
How much is a Bitcoin worth?
As we mentioned, the value of Bitcoin is based on supply and demand, and is calculated by an algorithm that measures the number of transactions and transactions made with Bitcoin in real time. Currently the price of Bitcoin is 9,300 USD (as of March 11, 2018), although this value is not very stable and Bitcoin is classified as the most unstable currency in the foreign exchange market.