Cryptocurrencies appeared and appeared with them more hope for some, and more anxiety for others, a completely new idea, a genius invention so that its owner is said to deserve the Nobel Prize in Economics.
A new financial system that there is no one to control or manage, as it is outside the control of states and traditional economic systems.
But:
Will digital currencies withstand the challenges they face, and will have a presence in the future?
Will digital currencies one day become an alternative to fiat currencies?
Will digital currencies pose a threat to the current economic system, or can states and governments coexist with them?
Why do digital currencies pose a threat in the first place to systems and countries?
This is a sample of many questions that are on the minds of many people dedicated to economic work, and on the minds of the governments of smart and aware countries. And in the mind of a lot of interested in the common also
I know that in most cases, you are not here to know the answers to the questions from the sample presented above.
But you want to understand what digital currencies are in the first place and how they work. How do you get it, how is it used and traded with it..
In this article, I will address the topic of digital currencies, from the angle that you want as a prospect to understand a new topic and how to deal with it.
Also, for those who are interested, you will find in the middle of the lines, perhaps, or in separate points, some of the matters related to the questions that were asked above.
In this article, I will address the topic of digital currencies, from the angle that you want as a prospect to understand a new topic and how to deal with it.
Also, for those who are interested, you will find in the middle of the lines, perhaps, or in separate points, some of the matters related to the questions that were asked above.
It is worth noting that, until now, no one has clear and confirmed answers to the questions that were asked above.
However, just asking and thinking about these questions is a very healthy thing for you as a potential user of these currencies.
Now let's start the topic and make you understand what digital currencies are in an easy and simple way.
What are digital currencies?
Digital currencies, digital currency, cryptocurrency, electronic currency, or cryptocurrencies are all synonyms for one meaning.
Digital currencies are currencies that have no physical basis. They are produced, traded and used in the procurement process, most of the time through the Internet.
They are traded in a peer-to-peer or (peer to peer) manner. That is, there is no intermediary in dealing (unlike the regular currencies in which the banks are the intermediary of dealing with them)
Digital currencies are decentralized currencies, meaning that there is no government or regulatory entity to manage or issue them.
It adopts recording and monitoring trading operations in digital currencies by miners or miners.
The most important digital currency
Bitcoin appeared in 2009 as the first cryptocurrency, and many internet users associate the idea of cryptocurrencies with bitcoin.
They do not know more about the rest of the currencies that appeared after it.
The shocking truth is that there are more than 1500 cryptocurrencies so far.
But what dominates the scene and the most famous in the world of digital currencies, is a small list of currencies and the most important of them:
Bitcoin
Bitcoin was the first cryptocurrency, it first appeared in 2009, and the real name of the inventor of this currency has not yet been announced.
But its inventor chose the name Satoshi Nakamoto as the default name for him, and for the coin to be associated with this name, whose identity we have not yet known
Given the importance of this currency specifically, I recently wrote a topic that includes the most important questions about the Bitcoin currency and the answers to them..em.
The idea of working digital currencies
The idea of digital currencies is similar to the idea of miners.
If there is a mountain that contains quantities of gold, it is likely that some companies will bring in the appropriate machines and start exploring to get gold from this mountain..
Digital currencies are also based on the idea of prospecting, so in order to start extracting digital currencies, you must obtain high-speed computers. It downloads the mining software and starts the mining process. But here, the situation is different in some respects. In the case of digital currencies, prospecting or mining is aimed at solving a set of complex mathematical equations and algorithms.
The interest here is a grant provided by the digital currency system to encrypted people who can solve these mathematical equations.
As for the benefit of the system itself, it depends on the miners or miners who record trading operations on their own devices.From this stems a strong encryption-based security system. Here we are talking about how to mine fiat currencies. However, this does not mean that prospecting is the only way to obtain digital currencies.
Benefits of cryptocurrencies
It allows anyone, anywhere in the world, to process a money transfer in minutes for anyone anywhere else.
It is characterized by privacy, so no one can see your account except you
Characterized by an ingenious security system, even large banks can penetrate their own networks, but digital currencies are very difficult if not impossible to penetrate their system
This is due to the multiplicity of miners, each of whom has a record of all financial transactions from beginning to end...nd.
Risks and disadvantages of digital currencies
The absence of a supervisory authority that can be referred to for litigation in cases of fraud and fraud. The user is absolutely responsible for his digital money.
The absence of personal data of users of the currency, which made it a means of suspicious trades such as arms and drugs trade.
The country cannot charge taxes on commercial transactions that take place through digital currencies.
It is assumed that taxes are one of the most important sources of income for every country, from which health and educational services are provided to citizens.
