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What is cryptocurrency?

What is cryptocurrency?
Recently, more and more often have to deal with the term "cryptocurrency", what is it?
Cryptocurrency-a digital currency, which is encrypted information that can not be copied (unit cryptocurrency – coin). Cryptocurrency, as well as any other coin, is protected from forgery.
In order to start using cryptocurrency, you need to install a certain wallet program on your mobile device or computer. After installing the wallet program, a set of characters of a certain length (address) is assigned.
The difference between cryptocurrency and conventional money in electronic form.
In order to use ordinary money in electronic form, they must first be deposited to the account, either through the Bank or through payment terminals.
Cryptocurrency-is implemented only in the network and is not connected with any conventional currency, with any state currency system. Based on this, the cryptocurrency is only "electronic money".
To obtain this coin can anyone who has a computer and special software. This process is called mining. In the process of mining, the computing power of the equipment solves various algorithms, the complexity of which gradually increases, after the end of the solution, the coin is mined, in other words – a set of encrypted information. In order to make sure that you really have a coin, there is a blockchain (account). This currency is stored decentralized, distributed among users ' e-wallets.
The advantages and disadvantages of cryptocurrency:
Advantages:
- Can produce anyone, thanks to the open-source algorithm.
- Anonymity of transactions, due to the lack of information about the owner.
- Decentralized nature.
- Not subject to inflation.
- Protection level – cryptocurrency copied.
Disadvantages:
- Lack of regulatory mechanisms, which does not guarantee the safety of electronic crypto-wallets.
- High volatility.
- Possible negative actions on the part of national regulators.
- The loss of the password from the electronic crypto-wallet leads to the loss of all the crypto-coins in it.
- When you change the difficulty level, amount of cryptocoins mining to become not rational for many users.
Thus, anyone can use, mine and create cryptocurrencies. The success of using cryptocurrency depends on the coverage of the audience.

 

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