What is a cryptocurrency?
Cryptocurrency refers to all the currencies that are ‘mined’ or created online. While conventional money is issued by states or national central banks, private founders are behind cryptocurrencies.
To avoid depreciation, the quantity of coins in circulation is limited. The decentralized execution of transactions through the blockchain ensures that supervision by the state is practically impossible.
Ultimately, this benefits any investor who cares about his or her privacy in a world of data theft, worms and viruses. In addition to its use as a means of payment, cryptocurrency is also enjoying increasing popularity as an investment.
Why is crypto money so popular?
Unlike traditional currencies such as the euro or the dollar, the risk of inflation in a cryptocurrency is much lower. This relative safety is due to several factors. Firstly, international distribution means that crypto money is not restricted to individual countries.
Additionally, the limited number of coins also plays an important role. Similar to gold, which is subject to finite supply, cryptocurrencies are issued in fixed quantities. Their popularity is due to fast transaction times and high profit potentials.
Numerous experts are confident that cryptocurrencies are the future in a world with progressively more sales and purchases made online. It is entirely possible that we will soon be paying for our online purchases with Bitcoins and Ethereum instead of euros.
For the average person, this development would mean a higher degree of flexibility and privacy. Thir is our brief review about cryptocurrency and it´s features.
Coin-Report.net was founded by Thomas Mücke.
With the help of Coin-Report.net magazine, he tries to bring light to the field of crypto-currency.