The word “cryptocurrency” will not hear in the news and you will not meet in the newspaper. However, this phenomenon is gaining increasing popularity and in the future can be a serious competitor to traditional money.
Cryptocurrency is digital money that was created as an alternative monetary system – anonymous, secure and stable. The first and most popular cryptocurrency was Bitcoin. Proponents of virtual money consider them more efficient and reliable, although they are not tied to physical goods.
The guarantee of Bitcoin reliability is not a bank commitment or political decisions, but a mathematical algorithm. Therefore, bitcoins, unlike any other currency, cannot simply be “reprinted”. In addition, Bitcoin transactions are protected from fraud, because they are made publicly through an open transaction log. Also at the heart of cryptocurrency is open source, to eliminate the possibility of fraud by the creators of the currency.
Most cryptocurrencies are based on open source (open source). This is the only way to guarantee users that the creators have not added any hidden features that allow fraud on their part. However, usually around each currency there is a group of developers who can add, remove and change properties.
To understand the intricacies of the functioning of virtual monetary systems, you need to have special knowledge in the field of computer technology. In summary, this is the case. The virtual currency is based on a cryptographic algorithm, that is, a mathematical system. To earn bitcoins, users provide the power of their own computers to solve these equations, instead receiving a non-short amount of cryptocurrency. The more capacity – the more income.
Agree, it looks all very strange. However, Bitcoin is already starting to be taken seriously. For example, payment for goods by Bitcoins is going to be introduced on eBay, and Russian billionaire Yuri Milner invests in start-ups related to cryptocurrency. One may joke about virtual money, but today one Bitcoin costs about $ 400, and in the past it cost about $ 1000. To date, over 13 million units of Bitcoin are in virtual circulation.