What is Cryptocurrencies
Cryptocurrencies are an established term first used in 2011 when describing bitcoin in Forbes magazine. This is decentralized money, the value of which is based solely on trust. The advantage of cryptocurrencies is the inability of individual organizations to manipulate, block and uncontrolled emissions. The first and most popular cryptocurrency is Bitcoin.
Why Bitcoin is money. Criticism of Bitcoin.
On the example of Bitcoin, you can study the most popular asto, you can hear that Bitcoin is not provided with anything and is valuable only as a means of payment (lack of intrinsic value). In the 19-20 centuries it was believed that money should be the most liquid commodity. However, modern research and economic theory suggests that money never possessed intrinsic value. In primitive times, money served as a way to remember who owes someone.A person who loaned a piece of mammoth to another person received from him a rather rare element in their area (shell, stone, etc.) - as a sign that he owes him a piece of meat. Different tribes used different money - but they always had the following properties - and the development of money went exactly on the way to improve these properties. In other words, what possesses these properties can be used as money. What possesses the best of these properties becomes reference money.It is clear that the oldest forms of money possessed a minimum of these properties. The shell cannot be divided; it may deteriorate. The stone is hard to bear and has a low value. Raccoon skins are also hard to bear and there are big problems with durability. It is known that in almost all countries, valuable metals soon became money. First of all, gold. It possessed almost perfect properties and until the beginning of the 20th century it was difficult to compete with it.Nevertheless, at the turn of the century paper money began to supplant gold from the calculation - it is easier to transport, it has easier recognition (to distinguish gold from an alloy of copper and zinc is quite difficult). There are dozens of ways to fake gold. In domestic conditions, to distinguish a real dollar from a fake one is much easier than fake gold from the real one.
At first, all currencies were pegged to the dollar (gold standard) and were just a way to improve the properties of gold. In 1971, currencies (the dollar above all) became a fiat currency - now its value is determined only by trust and has been untied from gold.The evolution of money did not stop there - the development of electronic systems has made electronic currencies possible - numbers on the screens of your computers. They have excellent transportability, divisibility, recognition and durability. No one thought what could be better.
However, in 2010, currencies were proposed that brought these properties to a new level. Cryptocurrencies have even better properties than the dollar - combining the best properties of the dollar and gold and at the moment are the standard of money.At the moment, there is a rapid development of cryptocurrencies, which are primarily aimed at improving the mentioned characteristics.
How it works?
On Bitcoin, you can learn the most popular principle of cryptocurrencies. Bitcoin is the first digital decentralized currency based on the Peer-to-Peer principle. This principle suggests that the transfer of money does not use a central trusted intermediary.Money (values, information) is transferred directly from the wallet to the wallet. The advantages of this approach are the impossibility of confiscation, management, uncontrolled issue of money by central banks, the ability to reduce fees and get rid of regulation. It is often said that Bitcoin is closest to gold, not the dollar.
The best properties of reference money on the example of Bitcoin
Can be carried
Can be divided into smaller parts and connected
Easy to understand what it is
Great value in light weight / size
Does not fade over time
How to get bitcoins
The easiest way is to register on the exchange, fund your account and buy bitcoins
How to make money on bitcoins
The easiest way is to buy and store them. Due to the limited emissions, a constant increase in their value is forecasted. Another option is to trade on the exchange using our Mobius Trader terminal. Using the mathematical apparatus, you can predict changes in the price of cryptocurrencies to one of the fiat currencies (dollar, euro, yuan, etc.) or one cryptocurrency to another.
How to store bitcoins?
The most reliable way - a wallet on a secure computer. You can divide bitcoins (or another cryptocurrency) into several parts. Rarely used can be in a safe on a flash drive or even simply written on paper (as a number). Often used - on a computer wallet. You can even store part of the money on the stock exchange or online wallet, with which you can pay in the store and always carry with you.
Deposit and Withdrawal