What is a cryptocurrency?

A cryptocurrency or cryptocurrency (Saxon cryptocurrency) is a virtual currency that is used to exchange goods and services through an electronic transaction system without having to go through any intermediary. The first cryptocurrency to start trading was Bitcoin in 2009, and many others have emerged since then, with other features such as Litecoin, Ripple, Dogecoin, and others.

What is the advantage?

When comparing a cryptocurrency with the money on the bill, the difference is that:

They are decentralized: they are not controlled by the bank, the government and any financial institution

They are anonymous: your privacy is preserved when making transactions

They’re International: everyone’s opera with them

They are safe: your coins are yours and nobody else’s, they are kept in a personal wallet with non-transferable codes that only you know

It has no intermediaries: transactions are made from person to person

Fast transactions: to send money to another country they charge interest and often take days to confirm; with cryptocurrencies only a few minutes.

Irreversible transactions.

Bitcoins and any other virtual currency can be exchanged for any world currency

They cannot be forged because they are encrypted with a sophisticated cryptographic system

Unlike currencies, the value of electronic currencies is subject to the oldest rule of the market: supply and demand. “It is currently worth over $1,000 and just like stocks, this value can go up or down based on 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 operations can only be carried out within the network of networks.

Bitcoin refers to both the currency and the protocol and the red P2P on which it is based.

So what is Bitcoin?

Bitcoin is a virtual and intangible currency. That is to say, you cannot touch any of its forms as it happens with coins or bills, but you can use it as a means of payment in the same way as these.

In some countries you can monetize with a page of electronic debit cards that exchange money with cryptocurrencies such as 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 such as Amazon Coins, Action Coins, is decentralization. Bitcoin is not controlled by any government, institution or financial entity, whether state or private, like the Euro, controlled by the Central Bank or the Dollar by the Federal Reserve of the United States.

In Bitcoin, users control what is real, indirectly through their transactions, through P2P exchanges (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. Its production and value is based on the law of supply and demand. Another interesting detail in Bitcoin has a limit of 21 million coins, which will be reached in 2030.

How much is a Bitcoin worth?

As we have noted, the value of Bitcoin is based on supply and demand, and is calculated by an algorithm that measures the number of transactions and transactions with Bitcoin in real time. Currently the price of Bitcoin is 9,300 USD (as of March 11, 2018), although this value is not much less stable and Bitcoin is listed as the most unstable currency in the foreign exchange market.