The role of the cryptocurrency miner is therefore to validate the transactions carried out. He is thus paid in cryptocurrency tokens for which he confirmed a new block.
A cryptocurrency developer will develop the computer protocol on which cryptocurrency is based, which notably defines the number of tokens in circulation, their circulation speed, their storage power, etc. He is a bit of the architect of the network.
BITCOIN: THE MAIN CRYPTOCURRENCIES
How many cryptocurrencies exist? This often asked question seems simple but in reality it is very difficult to know the exact number of virtual currencies. No site lists them all.
The Ministry of Economy and Finance counted more than 1,600 in July 2018, without having updated since. There could be almost 2,000 today, but that is not the most interesting.
We note that there are very many cryptocurrencies but that only a few dozen can be qualified as popular cryptocurrencies. We often tend to classify crypto currency s promising based on their market capitalization, rightly.
The crypto currency Bitcoin, created in 2008 by Satoshi Nakamoto (without knowing who it is, if it is a man or a woman, or even a single person or several) is the first of the cryptocurrencies. It is a bit of the digital gold standard in the cryptocurrency sector, the benchmark in this field. The main cryptocurrency experienced a fork in August 2017. A disagreement in the Bitcoin community over the speed of transactions gave rise to a new currency: Bitcoin Cash, which immediately rose to third place in the Top 10 cryptocurrencies and has remained since then in this Top 10.
Indeed, alongside Bitcoin, there are many other cryptocurrencies like Ethereum for example, which also experienced a fork in the summer of 2016. Ethereum, more complete than Bitcoin, relies on all Blockchain applications since it can not only process transactions but also contracts and complex programs.
Reaction of Bitcoin by Satoshi Nakamoto, around 2,000 cryptocurrencies have emerged. We note that the crypto currency ‘s are numerous, as new can emerge and challenge industry heavyweights but that disagreements within a community can lead to a “fork” (fork in French), an split within the community and the creation of a new currency from the technology of the old but making changes.
Virtual currency as a means of payment for the purchase of goods and services
Why do we use cryptocurrency ?
Like other currencies, cryptocurrencies allow you to purchase goods and services. They have escaped regulation under the control of the central authorities and they have long had the privilege of mislawing (ransomware, drug trafficking, etc.), but tend to remove bad reputations by democratization. Attract the audience. Cryptocurrencies are increasingly used in legal transactions. Bitcoin Profit App gives all kind of facilities regarding bitcoin investment and purchases.
In cryptocurrencies such as Bitcoin, you can buy many everyday consumer goods. For example, you can buy bitcoins, computer equipment, of course, food, jewelry, ornaments, cultural products, etc.
Overstock, a general merchant site accepts payment in Bitcoins, just like Shopify. Paying for everyday goods with other cryptocurrencies is more difficult, but not impossible.
Obviously, it is more difficult today to carry out a daily transaction in cryptocurrency than with the currency which prevails in the country where we live. Ditto for digital payments. However, cryptocurrencies could ultimately lower the cost of a digital transaction. And the financial and banking sector is watching these advances very closely. In the future, electronic payment based on cryptographic evidence may be the norm. Enough to embarrass banks by forcing them to completely review the transaction model!
The crypto currency as a financial asset to invest
Cryptocurrencies must find their balance between means of payment and financial asset. Because it is indeed a good on which investors have positioned themselves masse in recent years. For many who have come across these new types of financial assets, cryptocurrencies are primarily potentially profitable investments. Bitcoin Profit App is one of the best platforms for the bitcoin investment
However, are virtual currencies an investment like any other. But is cryptocurrency an investment like any other currency?
It is common to include cryptocurrencies in the category of miscellaneous goods and other atypical investments. This typology is relevant in the sense that it calls for caution and to invest only a whole part of its capital in such assets.