What cryptocurrency in simple words?

The cryptocurrency. You definitely heard that term before. And even have some idea what it is.

Electronic money? Yes. But the cryptocurrency cannot be equated with money in Paypal, WebMoney or funds on the cards. Currency? Yes. But cryptocurrency is not regulated by Central banks of countries, and its rate is not tied to the economy of any country directly.

Cryptocurrency is a special kind of financial and payment asset, designed to revolutionize the financial sector. And someone is convinced that cryptocurrency is nothing more than another “bubble”.

In this guide for dummies we will learn closer to the crypt, try to determine its status, form and value.

What is cryptocurrency?

Cryptocurrency is a type of digital money, which is based on the technology of cryptography, i.e., encryption. She has no physical form and exists only in electronic form. Its main features is anonymity, decentralization and security.

Circulation of cryptocurrencies within the system occur directly (P2P) without involving third parties. Each of the participants is perfectly the same. No one has a privilege, regardless of his social and financial status. At the heart of these virtual money is a decentralized open database – the blockchain.

Most altcoins have the ceiling of emission (release into circulation new coins). So he Bitcoin is 21 million “coins”. And in such currencies PPC and NVC restrictions on issue no.

A bit of history

Why would someone want to create a cryptocurrency? The answer to this question remains open. This is partly due to the characteristics of cryptocurrency. Previously it was not convenient and fastest way to carry out anonymous payments with a high level of security. With the advent of Bitcoin and other crypt, this problem was solved.

The official year of birth of cryptocurrency is considered to be 2009, when I started to operate the Bitcoin network. The “father” of bitcoin and other cryptographic currencies is considered to be Satoshi Nakamoto – mythologized character or even a group of people. This name was first published the Bitcoin Protocol. Him/them and carried out its first transaction.

It is obvious that Satoshi Nakamoto and CO have implemented long-term developments of specialists in the field of cryptography and IT-technologies. How many years were the development and research is unknown.

But we know that the term crypto currency (cryptocurrency) was first used in the material Forbes about Bitcoin in 2011-m to year. It has attracted so much and readers, and fans of the new virtual currency that began to characterize the whole of this niche.