There is probably nothing more prominent than the subject of cryptocurrencies. which has a lot of interest what is digital currency? What cryptocurrencies are there? Are these funds reliable? Is the world regulated by cryptocurrencies or not? And what is direction towards digital currency? Today, let’s get acquainted with cryptocurrencies.
What is digital currency?
Today there is still a misunderstanding by most of the public about New Crypto currency. However, if described in brief The digital currency system began with the development of a collaborative public money transfer system. without having to use a financial institution or any agency as an intermediary to verify and record money transfers But everyone can volunteer to participate by bringing their own computers to work in this system via the Internet. When the origin of the transfer order to the destination All computers in the system will see the above command. and help verify that the said transfer is from the real source or not And does the source have enough money?
The verification process has all computers on the network compete against each other to verify the accuracy. And which machine can do it first will be rewarded with coins in the cryptocurrency. and the data that has been verified will be stored in the blockchain transaction history list which is electronic data that is stored in sequential order in the order of occurrence of the transaction this transaction history data is stored on all computers that volunteer to join this currency network.
From this introductory principle, It can be seen that the digital currency system is Based on the blockchain transaction history storage, this storage system When the information is arranged in order of the transaction. Will make it very difficult to edit the history backward. Because in addition to having to edit the data on all computers that keep the data in sync It is mathematically difficult to modify an indexed number to point a stored sequence of data to a new set of numbers. which in the case of bitcoin was the first example that demonstrates the wide application of blockchain data storage
In addition, the digital currency system rewards participants for verifying the validity of their transactions. It is a coin of digital currency. This process is what is known as mining, which incentivizes people to join the network and bring resources to both the Internet connection. hardware device use of electricity and storage space Become part of the network to process and store transaction data. Therefore, the value of cryptocurrencies, in some respects, also depends on the cost of resources that will be used to work for the network.
As for the origin of cryptocurrencies that have recently become a hot topic in the past year, It can be traced back ten years, and from 1998 to 2009 there were ideas and attempts to create cryptocurrencies that could be secured with cryptographic technology, for example, B-Money and Bit Gold. this digital currency It is considered to have officially occurred in late 2008 to early 2018. 2009 by intelligent programmer A group of programmers (or group of programmers) who goes by the pseudonym Satoshi Nakamoto posted an article titled Bitcoin – A Peer to Peer Electronic Cash System to the crypto-technology mailing list. and persuaded the general public to install the C++ language program he developed on their personal computers. To participate in the network of auditing and collecting transaction data. Participants receive coins in Bitcoin as compensation, which in the early years of the birth of Bitcoin remained uninterested and unable to determine the price of this cryptocurrency. And it is rumored that in 2010, someone sold their own bitcoins for the first time, exchanging 10,000 bitcoins for two pizzas, roughly 10,000 bitcoins that day. It will account for more than $100 million in dollars today. 000 bitcoins that day It will account for more than $100 million in dollars today. 000 bitcoins that day It will account for more than $100 million in dollars today.
New crypto coin
AMATERASU is a new crypto coin. Amaterasu coin is to facilitate the use of cryptocurrencies in various utilities. The aim is to integrate everyday utility into the cryptocurrency, making it a useful tool and not just another hoarding tool.
What are digital currencies?
In the beginning, most people use the word bitcoin and virtual currency as synonyms, but in the last 6-7 years many other algorithmic cryptocurrencies have been created. Sorted by market cap (Market Cap is calculated by the number of coins multiplied by the trading rate), today’s top five cryptocurrencies include Bitcoin, Ethereum, Ripple, Bitcoin Cash, and Litecoin. Over 1,500 digital currencies have been created, each with a different level of popularity and trust.
Are cryptocurrencies reliable?
Today, cryptocurrencies are unaccredited by governments and government agencies. Including not using assets such as gold or instruments as collateral such as printing banknotes of different countries’ currencies where the price or value of cryptocurrencies will fluctuate according to supply and demand. It is truly a market mechanism. Cryptocurrency enthusiasts are diverse. From curiosity experimenting with innovative financial technology, mining (co-producing cryptocurrencies) in hopes of reward. Using cryptocurrencies as an alternative to collecting money short-term and long-term investments for profit or even investing in startups that raise Initial Coin Offerings (ICOs).
The cryptocurrency market is a very high-risk market. The digital currency market has a lot of investments coming in. causing the price to fluctuate and the market is highly sensitive For example, over the past 6 years, the price of Bitcoin has experienced 12 sharp declines, and since the development of the cryptocurrency. Many Nobel Prize-winning economists and well-known financiers such as Paul Krugman, Joseph Stiglitz, Robert Shiller, Warren Buffett, as well as large financial institutions such as JP Morgan have viewed the digital currency system as being unsustainable. Because it is not built with assets that support the value of a currency. It also sees that the money generated may not be able to be controlled in accordance with the real economic conditions.