Te end of fiat money is near! Here you can find the most complete and clear information about cryptocurrency, the new digital money. No third party needed because of the blockchain! What the blockchain technology will bring us, nobody exactly knows. But the new Google, Snapchat or Facebooks are the one which implent this technology at first and the best.
Advantages of Cryptocurrency
- Peer to peer
- Low transacion cost
- No bank of government, no third party needed
What are Cryptocurrency?
Cryptocurrency is a type of virtual, digital or online currency. It uses a communication technique of cryptocraphy for security purposes. The most spectacular feature of digital currency is that it is immune to any government interference because it is not issued by any central authority.
The system that produces the currency is public and in that way decentralized. This is done by miners who use computer power to resolve the formule. The basics for the whole concept are produced by Satoshi Nakamoto, the designer of the Bitcoin. Every other coin which uses the principle of the Bitcoin is called an Altcoin. Some popular and worldwide used currencies are Ethereum, Dash and Zcash. The total cryptocurrency market capitalization of the Bitcoins and Altcoins sums up a more then $100 billion at the time of june 2017. This was around $20 billion in march 2017.
Drawbacks of Cryptocurrency:
However there are numerous advantages there are some drawbacks as well. The currency is virtual which means that it does not have a central repository. This means that the money can be lost by a computercrash or forgotten password. Another major threat to cryptocurrency is the threat of hacking, there have been many thefts reported. And what to think about the Mt. Gox hack which cost people a lot of money.
As the money is decentralized and untraceable it can be used for various illegal purposes as well. Think about money laundering and tax evasion. The digital money has attracted many criminals to the online market, known as the ‘the dark web’. The most popular example of illegal activity on the dark web is probaly the online marketplace silk road. The Bitcoin was used to complete illegal transactions for drugs of weapons whereby the seller and buyer remained anonymous.