The inevitable birth of cryptocurrencies
When a society appears to be inadequate, it will itself produce something new to improve on the unreasonable! Suppose I am a copywriter (writer) and I have hired 7 people to collaborate, they are from abroad such as Canada, Australia, UK ... each country uses its own currency, I am using Japanese Yen. . As per agreement via Email, I pay to each of you 1 USD / 1 post. Last month, each Collaborator wrote 1,000 articles. So at the end of the month I transferred each person 1000 USD. Last month, I had to transfer money to collaborators, I took Japanese Yen money to the bank to transfer. The banker is also quite easy for me to give me a few documents, making me fill out everything, I have to sign here ..., sign that place, prove everything. So I transferred the money to my 7 collaborators, the transfer process took 2 days! Actually, this is true, I want to transfer my money abroad, but the foreign country doesn't accept my money, so I have to convert to international money (usually USD) to transfer, The transfer of USD to foreign countries is often strictly controlled by the State Bank, because this is the foreign currency reserve (because it has reserve value like gold, which can be used all over the world). Therefore, when transferring USD money abroad, you lose some of your domestic assets, so the Bank must monitor your money transfer carefully. In fact, Gold and USD have the same meaning because it can be used all over the world. You can use Gold and USD to go abroad. Domestic currencies are represented by reserves of Gold and Foreign Currency and other elements of the economy. So the transport of gold to foreign countries is also strictly controlled by the bank.
"Money transfer without bank is the reason people choose Cryptocurrency"
-> Due to the fact, people have only thought of one type of asset on the Internet, can be transferred directly (peer-2-peer) without having to go through any organization to manage it. That is the cryptocurrency.
That is cryptocurrency!
It is hard to imagine if you have never transferred money to others in cryptocurrency. Imagine, I just need to sit at home and enter the collaborator's e-wallet ID, then I can transfer money directly to 1 person in Canada in only 30 seconds, without having to declare to anyone, any one What information about my name, the name of the recipient or why I am sending money? So in just 3.5 minutes I can transfer money to 7 of my collaborators around the world. It didn't take me 2 days to go to the Bank to declare everything, then my money was transferred to my collaborator. Nobody knows I have transferred the money except for the recipient, and no one knows in my wallet How much money I have unless I show them. Did you see the magic? Just because you do not want to depend on the bank that cryptocurrency was born.
Cryptocurrencies are also listed, publicly offered as stock codes, also priced directly and traded, there are also countries that accept cryptocurrencies, countries that accept but do not protect participants. , there are also ATMs to withdraw the cryptocurrency, there are cafes that accept electronic payments ... I know that, please refer and exchange more! Do not believe do not say bitter words.
A few concepts
Virtual currency, also known as cryptocurrencies, digital currencies, they are keywords that have been searched on google for the past few years with a rapidly increasing number. This shows an increasing level of interest in this area. Today, I will give you what is the exact meaning of cryptocurrencies? What is virtual currency? Or digital currencies, what is cryptocurrency? As well as the role and applications of cryptocurrencies in life today, you can easily visualize the virtual currency market today.
What is virtual currency?
Virtual currency is a money with no specific physical shape, it cannot hold, it has no real value, it is created in an electronic environment. Virtual money is equivalent to cash, gold or other assets. It is used to buy goods or services or use it in online games and social networks. However it will be limited to certain communities.
What is cryptocurrency?
Cryptocurrencies are digital currencies that have been digitized as bits. This is a structured currency that cannot be broken, copied or changed. It is circulated in an electronic environment, it is an intangible asset but has real value, it is even more valuable than any traditional currency today.
You need to know that there are many types of cryptocurrencies right now, but the most typical is Bitcoin followed by Ethereum. Therefore, the cryptocurrency market is divided into 2 types: Bitcoin and Altcoin. Most altcoins can be purchased with Bitcoin.
What is digital currencies or cryptocurrency?
Cryptocurrencies, also known as digital currencies, are coins created by complex cryptographic algorithms based on open source software. It is traded on the internet environment and it is not controlled by intermediaries or any individuals or organizations.
Currently there are thousands of digital coins, headed by Bitcoin, and other altcoins like Ethereum (ETH), Ripple (XRP), Litecoin (LTC), Monero (XMR), DASH, Ethereum Classic (ETC) , or IOTA (MIOTA), ...
Cryptocurrencies, virtual currencies or digital currencies are being considered as a new currency - typically Bitcoin, used to pay for goods and services. It is an indispensable trend in the evolution of money as well as marking a new step in the field of information technology.
Characteristics and applications of the cryptocurrency
• Cryptocurrency is an intermediary peer exchange that works on the internet under algorithms.
• Very high liquidity. It is used quickly and conveniently by other countries.
• It follows certain rules like not issuing too much to avoid inflation happening.
Currently, cryptocurrencies are gradually being accepted and accepted by many countries such as the European Union, Germany, Japan, Switzerland ... such as Dell, Microssoff, Apple ... used as payment for goods and services and circulation is a legal currency.
Pros and cons of cryptocurrencies
Cryptocurrencies offer more benefits than traditional currencies such as fast trading, no transaction fees, and no third-party intervention. However, it also has weaknesses that are noticeable in the process of trading. As follows:
Advantages of cryptocurrencies
• Low transaction costs (some cryptocurrencies are free to trade)
• Convenience in transactions: You can transfer or receive the cryptocurrency immediately without going through intermediaries such as banks, governments, ...
• High security level
• Creating growth potential for e-commerce industry
• Environmental Protection
The downside of cryptocurrencies
• For beginners it takes time for them to get acquainted with the technology of creating e-wallets and use it expertly.
• The price of cryptocurrencies fluctuates, making it hard to predict.
• A place where money laundering criminals operate.
Cryptocurrency has been the trend of the future, it is rapidly becoming popular because it offers outstanding advantages. Cryptocurrency helps people escape theft, economic influence, political influence, and it is an extremely fast and transparent means of payment. It can be said that the cryptocurrency has surpassed the limits of geography and time.
When I introduced you to the concept of virtual currencies, digital currencies, cryptocurrencies, I mentioned Gold. Why do I mention gold? Because of its importance to a nation's economy, more broadly it affects the world's economy. What role does gold play in the world economy and in the world of cryptocurrencies? I will clarify this in the following section.
What is gold? Gold's role?
Gold is a metallic element that is yellow in mass, when gold exists in the form of 100% pure gold powder, it is black, ruby; It is purple when it is finely chopped. It is the most malleable metal known. In fact, 1 gram of gold can be stamped into 1 m² sheet, or 1 ounce into 300 feet². Gold is a soft metal, often forming an alloy with other metals to harden it.
Gold has good thermal and electrical conductivity, it is not affected by air and most chemicals (only silver and copper are better conductors). It is not chemically affected by heat, moisture, oxygen and most corrosives; so it is suitable for making coins and jewelry.
Application of gold:
- Pure gold is so soft that it cannot be used for normal purposes, so it is often hardened by alloying with silver, copper and other metals. Gold and its alloys are most often used in jewelry and coins and are a standard for currency exchange in many countries. Because of its excellent electrical conductivity, corrosion resistance and other desirable physical and chemical combinations, gold stood out in the late twentieth century as an essential industrial metal.
- Gold has been widely used around the world as a means of currency conversion, either by issuing and recognizing gold coins or other quantities of metal, or through banknotes with can be exchanged for gold by creating a gold standard whereby the total amount of money issued is represented by the amount of gold reserves.
- Gold is also applied in many different fields: jewelry, medicine, food and beverage, industry, electronics, ...
Gold is used to fight inflation
Investors often buy gold in large quantities when the country goes through periods of high inflation. Demand for gold increased during the period of inflation due to their low volatility and limited supply. Also because of its stable value, gold is able to hold its value much better than other forms of currency.
According to macrotrend.net
In January 2011, investors were concerned that the value of the currency was going to fall, and the price of gold reached 1,500$/ounce. This shows that it is difficult to put faith in the nominal currency because it is difficult to have economic stability in the long term.
Because of the properties and role of Gold, Many people own gold and keep it in the form of bars or bars as a tool against inflation or economic crisis. Gold is a strong anti-inflation barrier. If inflation increases, the world will see gold show its qualities better and we are gradually moving in that direction.
Back to the article, although cryptocurrencies will become the trend of the future, there is one thing I am still not satisfied with in cryptocurrency. That is the price fluctuations in a short time can be calculated in minutes, it fluctuates the price makes people unpredictable at all. Therefore, it increases the risk when you choose cryptocurrencies as a storage tool for long-term investment. So what is the solution?? I will tell you in the next section!
Introducing Digital Gold project
I was introduced to Digital Gold by my friend, my friend who has extensive experience in the field of cryptocurrencies. Through information research, I was especially impressed with the solution that the project has been implementing to solve the problem that I mentioned at the top of the article. The physical gold combination and it has immense benefits in the volatile cryptocurrency world. The digital gold platform integrates physical gold into the cryptocurrency market. Digital Gold applies advanced technology that is Blockchain technology in the process of physical Gold digitization. The result of this process creates an GOLD token based on the Ethereum platform with the ERC0-20 protocol, combined with the smart contract will create a GOLD token with outstanding advantages.
Characteristics of digital gold platform?
- Digitalized physical gold becomes digital gold. Technically speaking, physical gold becomes a cryptocurrency, but it still fully plays the role of physical gold.
- Blockchain technology is applied in digital gold platform. In the simplest way, Blockchain is a record file for various forms of virtual currencies circulated in digital transactions. It combines the security features of cryptography, storing and transmitting data in encrypted form in a peer-to-peer network to create a shared database. This helps Digital gold become safer, users can feel secure when participating in the Digital gold ecosystem. All user data will be encrypted and secure. Block represents the current and ongoing transactions. Each transaction connects to a previous and subsequent transaction, resulting in an accessible history of each record. When the transaction is completed, the block is linked to the chain (chain) making it a permanent entity that you cannot delete or change. When you trade GOLD tokens, no one can interfere or hack into the transaction nor change the transaction.
Blockchain's USP is an important thing that can be stored digitally without an equivalent in the real world. This electronic transaction method is widely trusted because everyone in the network has access to the updated version of the file, thereby keeping the data safe and transparent. - GOLD name is the token in digital gold platform, 1 GOLD = 1 gram of physical gold.
- GOLD is guaranteed by physical gold, the amount of GOLD will be equal to the amount of physical gold in the company's stock. Digital gold always ensures the amount of physical gold in the store is safe, which will create a solid confidence for investors. Digital gold also entered into a partnership agreement with Bullion Star, a Singapore-based company that specializes in the trading of precious metals and storage contracts for these metals.
- Unlike other cryptocurrency projects, Digital gold does not call for investment via the form of ICO or IEO, .. the project team itself mobilizes with their own resources.
What problems will Digital Gold solve?
- The biggest problem that Digital gold has solved is the price stabilization in the volatile cryptocurrency world. It has the full nature and role of physical gold, so Digital gold will be a smart choice when economic inflation occurs and when the cryptocurrency market is volatile, too risky.
- The process of owning gold: unlike the traditional method of buying gold, usually you will go to search for shops to buy gold; to buy gold you need to declare and complete a pile of papers; All this consumes you a lot of time. But with Digital gold, you will go through a completely simpler process, less time-consuming and especially safe. You only need to visit their website: https://gold.storage and you conduct transactions, you will own the GOLD token almost immediately, you can also exchange or store GOLD like real gold or can be sold immediately or someday.
- When you own physical gold, it always exists many risks: damage, wear, steal gold ... Bring that risk to Digital Gold for them to solve, gold is digitized so it cannot be Damaged, the more it can not be stolen because it is digitized and stored by Blockchain technology, only you own your key and you have the right to decide on your gold, no one can invade It is.
Conclusion: Digital gold has opened up a completely different direction in the volatile cryptocurrency world. Through that great idea, Digital Gold has solved the conundrum and awarded the opportunity to own gold for all those who love gold (maybe for some reason they couldn't own gold before. ).
Statement: This article I have provided you with some knowledge about cryptocurrencies, along with a potential Digital Gold project. Do your research on the project and hone your knowledge of cryptocurrencies. Be a pioneer to succeed.
FOR MORE INFORMATION PLEASE VISIT
Website: https://gold.storage
Whitepaper: https://gold.storage/wp.pdf
Ann: https://bitcointalk.org/index.php?topic=5161544
Medium: https://medium.com/@digitalgoldcoin
Telegram: https://t.me/digitalgoldcoin
Facebook: https://www.facebook.com/golderc20
Twitter: https://twitter.com/gold_erc20
AUTHOR:
bitcointalk User Name: yenyen143
bitcointalk profile: https://bitcointalk.org/index.php?action=profile;u=2370719