Crypto

Crypto

How long has cryptocurrency been around?
In the early 1990s, a group of programmers and cryptographers discussed ways of protecting privacy in digital space via email. Based on the term “cyberpunk”, they called themselves Cypherpunks. A well-known representative is the Briton Adam Back. He developed the first proof-of-work method on which cryptocurrencies are based. Put simply, the sending computer proves that it required a certain amount of computing effort for the outgoing message. The original aim of the proof-of-work method was to avoid spam.

How many Cryptocurrencies are there?
There are now more than 12,000 cryptocurrencies with a total market capitalization of around 1,6 trillion Dollar.

Why are there Cryptocurrencies?

The goal of the first crypto currency Bitcoin was simply to create a payment system that works without financial institutions. In order to allow consumers a certain amount of informational self-determination and anonymity. As a result, Bitcoin has been used, among other things, as a means of payment for illegal transactions in recent years. Although this fact reduced the social acceptance of cryptocurrencies, the underlying technology has now been expanded and improved. Cryptocurrencies can now be used for much more than just monetary transactions, as they are a secure, fast and cost-effective alternative for transferring sensitive data.

Cryptocurrency future?
Dragan Boscovic, founder of the Blockchain Research Lab, assumes that cryptocurrencies are likely to become more and more normal in the next ten years.
Central banks are in the process of developing regulations for cryptocurrencies. They recognize that digital currencies are part and parcel of the digital economy that it should make them mainstream in the next ten years.

Advantages
-Crypto money makes payments without a bank possible. As a result, transactions are not only ultra-fast – practically in real time – but also very cost-effective.
-Every internet user has access to Bitcoins & Co.
-Blockchain technology, which is behind most crypto currencies – also with Bitcoins -, manipulation and counterfeiting are almost impossible.
-Cryptocurrencies are independent of central banks and states. Monetary policy has no influence on them. Printing money or artificially low interest rates are not possible.
-The money creation in cryptocurrencies is usually very limited. As a result, money remains tight, which opens up opportunities for value increases over time.
Disadvantages
-Crypto currencies are not an official means of payment and are viewed rather critically by central banks; their acceptance depends largely on the level of awareness and distribution; “smaller” cryptocurrencies in particular have problems here.
-There is no cash, only electronic payments are possible.
-Cryptocurrencies have strong fluctuations in value, whoever trades with them also runs a high risk of loss if the chances of winning are high.
-Anonymity – an advantage of cryptocurrencies – can also be a disadvantage, as money laundering and criminal transactions are favored.
-Cryptocurrencies require high computing capacities and a lot of electricity.