Some doubts still concerned who are interested to entering in the cryptocurrency world. Is very usual to read rumors that people propagated from sensationalists websites. For it, the Crypto New Media has published one article where clarify the four most frequently doubts of beginners of the crypto economy.
The bubble of the cryptocurrencies
The cryptocurrencies has builded based in a basic concept of the economy. One of those concepts is the shortage supply that make it deflationary. The bitcoin, for example, have a limited number of coins that will be created, making it a rare product. For it, this cryptocurrency can be used as a speculative asset, in a similar way as gold. Another concept behind cryptocurrencies is the usability that opens new possibilities to the financial world. One of those possibilities is the simplification of the international transference process, eliminating the need of a third part. Systems of international transference as SWIFT are exploited by hackers to apply frauds at banks.
The bitcoin was the first virtual coin?
Bitcoin was the first cryptocurrency, but not the first virtual coin. Many groups of technology enthusiasts have done researches and tried to create a virtual coin. The main group involved is known as the cypher punks and among the members is David Chauman, the creator of DigiCash. What make bitcoin so revolutionary is how it works, applying concepts like blockchain and the miners nodes.
How the bitcoin value is defined?
He enters a universal concept of the economy, the law of supply and demand. The bitcoin is directly affected by this law and haven’t interference of any institution. The fiat coins, for other side, also is affected for this law, but their Central Banks intervene to control his value. Therefore, not all cryptocurrencies have this operating system, this is the case of the better know stable coins.
The launch of the bitcoin coincides with the great crises of the american’s mortgage at 2008. With the spread of a large number of frauds discovered in big financial institutions, a crise crisis of credibility has appeared in the market. For it, the decentralized model of the cryptocurrency as gained more and more adepts.
How the technology could increase the cryptocurrency industry?
Many high qualified professionals has entered in the crypto world. Initially they has attracted by the technology potential or for ideological issues. However, currently many has been attracted for the high salaries offered on this market. Big companies have invested in projects that involves the technology of cryptocurrencies. In fields like trading, advanced technologies has been applied to search the best results.
The cryptocurrencies are the perfect combination between the financial world and technology. The tendency is that the individual raise of each one of those worlds boost the other world to develop togetherly.
