Cryptocurrency is a new phenomenon in the modern world, completely unusual, causing a lot of conflicting opinions, rumors and speculation. What is true in them and what is irrelevant to the case, and we will understand the article.

What is behind the concept of cryptocurrency

The concept of cryptocurrency hides the usual digital code. It is created using computer software, and is controlled using blockchain technology.. The essence of the technology is that the whole chain, from creation to distribution among specific users, changes all at once, as soon as an individual link changes.

That is, the computer generates the creation of one unit of cryptocurrency, and this is immediately noticed by the whole system. Therefore, it is impossible to fake anything. But creating even one coin of any cryptocurrency is not so simple. This requires the great computing power of computer systems.

Units of any virtual money are called "coins", which is translated from English as a coin.

Important: cryptocurrency does not have physical media or objects. Therefore, if you are offered a coin of Bitcoin, or other virtual money, be sure that it is a fake and they are trying to deceive you.

The spread of virtual money in the world

There are many difficulties with this now. Each country has its own legislation. And so it turns out that in some countries cryptocurrency can be traded on the exchange and accepted in online stores as payment for goods. And in others, virtual money is almost completely prohibited.

This is due primarily to the fact that a new phenomenon cannot be classified in any way: whether it is good or evil. The arguments of opponents and allies are very diverse and not without meaning.

Therefore, you need to consider the advantages and disadvantages. The advantages include:

  • there is no single emission center. Therefore inflation is not possible (depreciation);
  • no transaction restrictions. Payments are made independently of regulatory authorities and banks;
  • impossible to steal;
  • low fees for transfers.

Disadvantages:

  • the cryptocurrency exchange rate on the exchange is very volatile (subject to leaps), when in one day money can become cheaper or more expensive by 5-10%;
  • not all countries recognize this money;
  • a small percentage of the population uses virtual money.

Attention: in Russia, the chairman of the Central Bank Nabiullina proposed not to consider cryptocurrency legal tender. And although there are no articles for punishment when using, some representatives of law enforcement agencies even instituted criminal proceedings on the fact of the turnover.

And here is a list of countries where virtual money can be used on a par with ordinary:

  • USA;
  • Singapore;
  • Switzerland;
  • Canada;
  • Denmark;
  • Norway;
  • Japan;
  • Sweden;
  • Germany;
  • Czech.

Can cryptocurrency replace real money

Not now, nor in the foreseeable future, virtual money can not replace the present. And this is due to the fact that the financial regulators of different countries have no relation to the issue (issue) of virtual money. They also can not regulate bank rates and accordingly affect the rate of cryptocurrencies.

And without such leverage, central banks cannot influence economic policy.

Governments and major financial institutions will certainly not let go of their ability to determine key economic parameters.

And at the moment this seems to be the only right option. The entire economy of the world is imprisoned for real money. On who and how they release, sell or buy. Everyone understands the rules of the game in the foreign exchange market.

The breakdown of established orders is capable of introducing chaos into the global economy.

Cryptocurrency is a very advanced trend in the modern world. But the world itself is very old-fashioned. Moreover, not only orders are conservative, but also the brains of the majority of the population, including those who are responsible for the economy and determine the order in it.How the world of cryptocurrencies will develop, no one can accurately predict. But it is absolutely certain that the world will no longer be the same.

Virtual money gave freedom in the world of money, previously unthinkable.