- Blog »
- 10 things you should know about cryptocurrencies
10 things you should know about cryptocurrencies
Written by Davies on / Reading time: 3 minutes.
For some years, cryptocurrencies have become an effective way to ensure the security, integrity, and a balance in accounts. To achieve these values, the miners actively protect the network or lattice, because break with such security would entail a high cost. It would be necessary to achieve a computational power that exceeds the entire frame. Do you think this is possible?
Apart from this question, we want to break some myths about cryptocurrencies and share with you 10 relevant aspects you should know.
Would you like to know some facts about cryptocurrencies?
Nine years have gone by. Nine years since the society began to hear about the phenomenon of virtual currencies. Nine years since the dream of Satoshi Nakamoto, creator of the Bitcoin, began to make sense. Nine years since a new payment system emerged and questioned the foundations of the traditional financial system. Nine years that have brought questions and facts such as:
- What is the value of a cryptocurrency?There is no specific answer to this question, mostly because it varies in the same way that may vary the shares on the stock exchange. In fact, there are many factors included, but are we talking about price or value?
- Greater comfort in the mobility of money.It is possible that virtual currencies acquire more value than the traditional currency did, but for this purpose it is necessary time. Without a doubt, it's an ideal medium for instant transactions.
- Facilitate the transactions.This is one of the main advantages of cryptocurrencies. They have facilitated lending between private individuals and the instant payments at a low cost. Immediacy has entered into scene thanks to this system: money may be available in few seconds in the beneficiary's account at any moment and time of the day.
- Who launches the cryptocurrencies? Currently, anyone can create their own cryptocurrency, in fact it is something that many professionals have already done. Just take a look at the number of virtual coins that exist in the market. Will banks create their own cryptocurrency in the future?
- Grant independence. If we had to highlight just one relevant aspect in the use of the cryptocurrencies, it would be its independent character. It's a decentralized currency whose power and control resides in each person. They do not need permissions to perform operations with them.
- Blockchain technology supports the cryptocurrency system.We would not be far from reality if we define this chain of blocks as a kind of accounting book, with copies distributed in different parts of the world, allowing you to keep track of illegal actions.
- Do they generate big profits?Yes, although we must keep in mind that they may also cause losses. However, earnings don't depend on the amount of the effort you put, because there are increasingly more users who are attached to its use, so the value is increasing.
- When did the first cryptocurrency emerged?Its origins go back to 2009, when the Bitcoin began to operate with a strong cryptographic system which was able to secure financial transactions and verify them.
- Where is the trade with cryptocurrencies localize?In short, the online world has become the main stage of these systems, mainly because the possibilities it offers.
- What has been the biggest transaction registered so far? The web Blockchain, has listed them,and we can see that the largest recent transaction has been made with 399.99998964 BTC.
The world of cryptocurrencies continues to grow. Just take a look at its evolution over the past year. Are they already a fashionable financial asset? To make us an idea, we have collected data of the Bitcoin during 2017 showing "a strong appreciation that has exceeded 1000%".
Tackling risks is the first step to overcome them.