Cryptocurrency is a digital money, creates from computer code. Cryptocurrency is an encrypted string of data or a hash, encoded to signify one unit of currency. It is free of all governmental oversight.
The cryptocurrency economic is monitored by a peer to peer internet protocol known as blockchain technology. Bitcoin, as a decentralized network of peers which keep a consensus about accounts and balances, is more a currency than the numbers you see in your bank account. What are these numbers more than entries in a database – a database which can be changed by people you don‘t see and by rules you don‘t know?
These new digital currencies are called They are called cryptocurrencies because the consensus-keeping process is secured by strong cryptography. Cryptocurrencies are built on cryptography. They are not secured by people or by trust, but by math. It is more probable that an asteroid fall on your house than that a bitcoin address is compromised.
Coins can only be created if miners solve a cryptographic puzzle. Since the difficulty of this puzzle increases the amount of computer power the whole miners invest, there is only a specific amount of cryptocurrency token than can be created in a given amount of time. This is part of the consensus no peer in the network can break.
Cryptocurrencies are digital gold. Sound money that is secure from political influence. Money that promises to preserve and increase its value over time. Cryptocurrencies are also a fast and comfortable means of payment with a worldwide scope, and they are private and anonymous enough to serve as a means of payment for black markets and any other outlawed economic activity.
But while cryptocurrencies are more used for payment, its use as a means of speculations and a store of value dwarfs the payment aspects. Cryptocurrencies gave birth to an incredibly dynamic, fast growing market for investors and speculators. Exchanges like COINSTEC™ and COINSBANK enable the user the ability to trade of hundreds of cryptocurrencies. Their daily trade volume exceeds that of major European stock exchanges.
People all over the world buy Bitcoin to protect themselves against the devaluation of their national currency. Mostly in Asia, a vivid market for Bitcoin remittance has emerged, and are flourishing. More and more companies discover the power of Smart Contracts or token on Ethereum, the first real-world application of blockchain technologies emerge.
The revolution is already happening. Institutional investors start to buy cryptocurrencies. Banks and governments realize that this invention has the potential to draw their control away. Cryptocurrencies will change the world step by step. You can either stand beside and observe – or you can become part of history in the making.