What you need to know about the crypto currency?

Spread the love

Crypto currency – what is it really like? The future or the fake? And what do we need to know about this?

The digital currency has undermined the modern economy and economic consciousness. Is it really a cripple currency – is it the end of “real money”? Let’s deal with this in this article!

What is crypto currency ? This is the same as Bitcoin? If you think so, than now we will make this difficult question clear.

In a word, yes. The bitcoin was the first unit of crypto currency . However, the time expires, and the “representatives of crypto currency” appear more and more.

All of them have the same basic reasons: they use block chain, a public record of transactions, to create and track a new type of digital token, one that can be created and distributed only according to agreed network rules, whatever they are. However, all this exists in a different  variations.

Some other crypto currencies , such as Litecoin or Dogecoin, fulfill the same purpose as bitcoin – this is a new, modern currency with refinement of some details (for example, accelerating operations or providing basic inflation rates, and others).

The bitcoin does not really exist as a particular physical or even digital object. It is difficult to perceive, but it is. Over time, you will understand this better.

What you really have when you own a bitcoin is a collective bargain of any other computer on the bitcoin network that your bitcoin was legally created by a bitter “miner” and then handed over to you through a number of legitimate transactions. If you really want to own some bitcoin, then there are two options: either to become an investor (which involves investing big money in computers and billing for electricity – probably more than the cost of the bitcoin that you actually do), or just buy bitcoin from someone else using regular money, usually through an exchange, such as Coinbase or Bitfinex.

If you do not agree with this collective agreement, then nothing prevents you from splitting the wider network and creating your own bitcoin version. This is what is known as a “fork”, and it has already happened several times (this is something that is rivals such as Litecoin and Dogecoin). Difficulty convinces other people to follow you. The currency used by only one person is not much higher than the currency used by everyone.

What can you actually do with such money?

In theory, almost everything that can be done with a computer may in some way be rebuilt on a crypto-exchange platform. However, in practice, the range of actions with crypto-currency is rather limited.

“Virtual currency” can be used as a payment system for several online transactions, and even less real, while other crypto-cultures are even younger. The excitement of the field is more focused on what can become than what now exist.