In a totally pragmatic approach as a survivor (let's be precise!) I asked myself a simple question at first glance,
Should I invest in crypto money?
For reasons of understanding, I would confine myself to the Bitcoin.
I'm not an expert, for this article, I chose to forget everything I knew, and start again at the beginning (which was not difficult at all).
Before answering this question, it was important for me to determine what a cryptographic currency is.
So I do what many of us do in this case, Google, search,"crypto-money", Wikipedia, Entry. Two mouse clicks later, here I am with a definition.
Cryptocurrency, also known as cryptodevise or cryptographic money, is an electronic money that can be used on a decentralized, peer-to-peer computer network, based on the principles of cryptography, which can be issued by the user himself and allows transactions to be settled. Today, all crypto-currencies are alternative currencies because they have no legal tender in any country. Encryption coins use a proof-of-work validation system to protect them from electronic counterfeiting. Many crypto-currencies have been developed but most of them are similar and derive from the first complete implementation: the Bitcoin.
With few exceptions, the majority of crypto-currencies are designed to create new units of money gradually, while at the same time placing a ceiling on the money supply that will eventually be in circulation. This is done to mimic the scarcity (and value) of precious metals and avoid hyperinflation. Compared to ordinary currencies maintained by financial institutions or kept in cash, crypto coins are managed by an open and searchable general ledger of accounts (the blockchain) that lists all transactions from the outset. An encrypt currency is not anonymous, as any transaction can be consulted on the Internet with the e-mail address of the sending and receiving account as well as the amount of the transaction. Nevertheless, these transactions are forgery-proof and tamper-proof thanks to the use of cryptography. There are exceptions to this rule, such as Darkcoin10 and Zerocoin, as well as Bytecoin, Black Coin, which are totally anonymous currencies. »
Wikipedia
All right... If I understand correctly, I end up with an alternative computerized currency, decentralized, with a course of its own, and close to gold or another metal for which countries have made war. Anonymous or not.
In the logic I can therefore exchange anything for crypto-currency if my interlocutor wants this currency.
They're tamper-proof and tamper-proof, and I can look at the transactions on a "ledger" called blockchain.
Second step:
So far, okay, but that doesn't answer my main question, and I have a lot more questions now.
What is blockchain?
So I left again for a keyboard trick, and hop! Here I am on a new page of the largest encyclopedia in the world.
A blockchain or chain of blocks is a distributed database whose information, sent by users, is checked and grouped at regular intervals of time in blocks, linked and secured by the use of cryptography, and thus forming a chain. By extension, a block string is a distributed database that manages a list of records protected against tampering or modification by storage nodes. A blockchain is therefore a distributed and secure registry of all transactions made since the distributed system started.
An analogy with the Internet (TCP/IP) can be drawn, since both are computer protocols underlying a decentralized infrastructure. The Internet transfers packets of data from point A to point B, while the blockchain allows "trust" to be established between agents separate from the system.
Many crypto-currencies use blockchains for security. Satoshi Nakamoto, the inventor of bitcoin, was the first to apply a decentralized block chine. Transactions on a block chine are very difficult to cancel because the blocks are resistant to change. 3
The blockchain - and its decentralized trade verification protocols - could have a very significant impact on states, which are challenged in relation to their monopoly on currency and financial transactions, but also have an impact on banks and the economy as a whole.
Wikipedia
I'm starting to understand a little bit more precisely so if I transpose the blockchaine technology on the use of crypto-currency it gives that:
Imagine a transaction that is all about sending or receiving non-physical money.
If you use your credit card, the authorisation request is transmitted from the seller's Eftposit TPE, to the seller's bank, and then to your bank, which sends back a positive or negative reply that goes back to the seller's bank again and to you by a visible message on the Eftposit TPE screen.
In case of a negative answer, the transaction will be stopped. In the event of a positive answer, the payment will be considered as having already been made, even if your account and the seller's account will only be debited and credited a few days later.
Cryptocryptography does not work in the same way.
You saw earlier that they exist outside banking and government institutions. There is no single server or central authority that rules them.
Let's get back to our salesman. Let's say you can pay for it with bitcoins.
You want to send these from your Wallet to the seller's wallet.
The Wallet is a file that gives access to one or more bitcoin addresses.
A bitcoin address is a succession of numbers and letters. Each address has its own accounting. And each address has its own private key.
The private key, on the other hand, makes it possible to spend the Bitcoins of the Bitcoin address to which it is associated and to identify that you are the issuer of the transaction.
The public key allows anyone to check if a transaction is signed with a private key it is known from all nodes of the network.
You will find more informationHERE.
To submit your payment, you communicate the seller's address and the amount to your Wallet and send it to the seller.
Your wallet signs your transaction request with the private key of your address and transmits it. Everyone can now use the public key to verify that your transaction request comes from you and not from someone else.
This transaction is propagated and validated by the nodes of the network, when this is done the other nodes synchronize on it what creates the new block of the network and this is done every 10 minutes. What is more commonly called blockchain.
Once your transaction has been verified, the seller receives confirmation of the transaction.
New confirmations appear with each new block created.
After this research, I continue to search here and there, so I pass the presentation to you so as not to get lost with lengthy explanations, I strongly invite you to do your own research and learn by yourself what there is to know.
Well, I've already made a lot of progress, if I summarize, I know more or less what a crypto-currency is and how it works for the Bitcoin.
I was able to confirm that with the "proof of work" method it was difficult to hack blockchain.
And now I know that entering into a transaction costs me nothing.
I know that the Bitcoins, have a limited number of "coin" 21 million units, set in the code this maximum number can not be changed therefore the Bitcoin to the same properties as gold for example.
Finally, this virtual currency is beyond the control of government and banks.
At first glance, the idea of this currency is all very well, but the pros and cons have to be weighed.
What are the advantages of crypto currency?
Anti-government: well, we're not going to complain, if I keep gold somewhere, it's to avoid being dependent if the economy collapses. So here I have a substitute currency.
Identical to gold: its properties being the same gold it allows me to know that tomorrow, I would not have distributed like buns that will hurt the economy.
Easy to transport:Since it's computerized, I don't need to travel with a safe full of all my savings if disaster strikes.
A USB safe is enough for me to keep my treasure safe
And therefore easy to transport
Security: I am therefore my own bank, and for any survivor who does not trust the banking system this solution is perfect, because I can keep my "money" safe at home.
That's fine, but what are the disadvantages then?
That's where it gets a little complicated, I know that for some it's imaginary, or paranoia, but as I said at the beginning, I'm trying to stay pragmatic, so I have to check all the possible aspects.
This currency is not palpable, and that's the problem, let's say the network breaks down how can I get my money?
Imagine that I buy a bag of gold coin, an electromagnetic pulse strikes, I always have my gold coins, this will not be the case with a crypto-currency.
So it turns out that with this solution, I end up with a new dependency, and if this new system leaves me, I have nothing to do with it.
Well, the first thing the States will do in this case will be to
It is also possible that governments may prohibit the sale, or regulate it, which is something I must address.
I therefore invite you to read this article fromGold-Silver which describes a very different situation from the freedom that we think we continue to have.
In this scenario, I am once again dependent on the system.
In the end, I think that crypto-money is the future, I cannot say in the future which ones will remain, but I am sure of one thing they are made to last.
And just like the beginnings of the Internet or computers, some people will not immediately accept that this is possible, but a time will come when they will have a place in every household (or almost all of us do not have access to a home computer, even today)
It remains to be seen how the world of crypto-money will be regulated in the future.
Gold remains a sure value, although more difficult to transport, I keep in mind that with my autonomy
.
But if I look at the state of Venezuela and the solutions that the crypto-currencies have brought to the inhabitants (by forgetting a little bit about the way the state has taken) it seems to me that their use is a very good way of preparing for a financial crisis and keeping its autonomy, to some extent.
Should I invest in crypto money?
It is only if an economic collapse leads to a sharp reduction in complexity - parallel to the collapse of the post-Soviet economy after 1991, albeit for different reasons - thus jeopardising the existence and reliability of the networks that bitcoin could no longer be used as a currency or payment system - in this extreme scenario, only precious metals would be able to take over".
Alexis Toulet (the full article:bitcoin. fr)
Sources :
https://fr.wikipedia.org/wiki/Crypto-monnaie
https://fr.wikipedia.org/wiki/Blockchain
https://or-argent.eu/le-plan-secret-des-elites-pour-les-cryptodevises/