They are mostly tech users who see something in the digital currency. For ordinary consumers or investors, something too confident without proof of identity is another step too far in digitization. What does not help is that monitoring of digital currency is missing. That makes the bitcoin unpredictable, volatile and risky. Due to the deregulated network of cryptocurrency, the virtual currency falls under no guarantee scheme or supervision. One unregulated money is not insured by the bank or an insurer. Whoever gets an attacker can just lose his entire fortune. At the same time, the decentralized character of the currency is also its strength. Precisely because a cryptocurrency is stateless, its value is independent of the economic policy in a country. Extreme devaluations are not possible.
Nothing for me so why do I read so much about it?
That computer money lies on everyone's lips is due to the great potential of the technology. Although bitcoins - by far the most famous cryptocurrency - are stolen, the thief can do much less than with a euro or a dollar. The technology behind virtual coins called "blockchain" ensures that every step in the transaction process is stored and monitored. Any irregularity is detected. The decentralized design of bitcoin, the value is determined by algorithms and verified by computers, makes the currency a safe means of payment. Only if multiple independent computers come to the same outcome can be dealt with. In fact, you can describe cryptocurrency as a payment protocol. And nothing remains hanging on the pole. The parties can deal directly with each other.
And that fraud then?
Also the internet community has its rotten apples. Every year, businesses are estimated to be $ 400 billion to $ 500 billion by cybercriminals. On this scale, the recent theft of $ 65 million to bitcoins is negligible. Hackers are everywhere, also within "untouchable" bitcoin platforms. Within a decentralized market there is no way of monitoring the virtual coin developers. The sanctions that the crypto community can impose are limited. They can take out coins, make useless, get out of control, never act physically - think of arrests, penalties and other measures. This requires the cooperation of the authorities.
I want them anyway. How do I get cryptocurrency?
Without supercomputers no bitcoin. Only systems that have sufficient computing power to crack the mathematical formula behind a bitcoin (or another cryptocurrency) can create coins. With each coin, the formula becomes more difficult. As a consequence, the amount of coins that are created is limited. Currently, approximately 12 bit coins are found every ten minutes. A total of 21 million bitcoins are available, of which there are now almost 16 million in circulation. The formula for making a bitcoin is so complicated that a normal computer is unable to find virtual coins. In China and Iceland there are complete server parks that do nothing but search for digital coins throughout the day. The fastest way to get computer money is through marketplaces. On platforms like Coinbase, BittyLicious and Cryptocapital, the purchase of cryptocurrency is a piece of a penny. These platforms are in fact marketplaces where supply and demand come together. To place virtual coins, a so-called Wallet is required - a bank account for cryptocurrency. Although Bitfinex's theft sounds unconvincing, a wallet (online or offline) is often the most secure option. Few consumers are able to adequately protect their computer system against hackers. Although there are also bitcoin users who swear by 'cold storage' - the key to your virtual savings has been written on a piece of paper or placed on a loose memory stick. The disadvantages are okay, but your computer money is safe for hackers at least.
Which virtual currency should I choose?
Bitcoin, Ethereum, Steem, Ripple, Litecoin, the list of virtual coins is huge. There is even the Dutch crypto coin 'Gulden'. The Coinmarketcap website has 737 different currencies - four times the list of 180 officially recognized currencies by the United Nations. Last week there were eight new coins. Why are there so many? Because it's possible. The currency is not regulated by a government or bank. Any smart programmer can create its own cryptocurrency. Everyone uses blockchain technology and adds his own sauce.
The one is faster negotiable, the other safer, the next one easier to find and so on. The first virtual currency was the bitcoin. This coin from 2008 peaked in 2013. The value of the cryptomunt rose in two months from $ 125 to $ 980 and $ 2300. It caused enormous shedding of investors and investors and fueled the current growth of coins. The latter does not contribute to the trust in the market. The single coin will rise quickly, while the other will lead to a silent existence. A bitcoin success depends not only on sublime technology but also on the right marketing. The end of the growth of digital coins is not yet in sight. Weaknesses in the current system tempt programmers, academics and entrepreneurs to more and more cryptocurrencies. Everyone is looking for the winning coin. On websites like coinmarketcap.com it is possible to view current prices, quantity of trade and volatility. This gives some indication of which currency the market has the most confidence in.
Which virtual currency is one of the better coins for the small investor ?
DGB
AMS
DODGE
XVG
BAY
RDD
I try to tell you more about the different coins in the next post.
Tell us your idea, nice weekend ;)