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There are many sites on the Internet that explain what cryptocurrencies are. However, most of them are aimed at an audience that has knowledge of them or has a certain technical level. The goal of this page is to explain what cryptocurrencies are to any reader, regardless of prior knowledge.
What are cryptocurrencies: In a nutshell
Cryptocurrencies are digital money whose objective is to replace conventional money. They aim to solve problems that traditional currencies present such as centralized control, lack of transparency , lack of anonymity and ease of manipulation.
We say that traditional money is centralized because there are a few actors (the Central Banks) that have absolute control over it. Cryptocurrencies are decentralized, so there is no entity or individual that can alter their price or that can issue more currency to the market.
On the other hand, we say that traditional money is not very transparent, since the control of how much money each individual has is in the hands of private entities. The amount of a bank account is nothing more than a record in a database, if the bank wants it can alter the amount of an account without giving accounts to anyone. Cryptocurrencies are transparent, since there is a global transaction ledger that anyone can download and consult. Any individual can see the balance of all the wallets and what the previous movements have been to obtain that sum. This information cannot be falsified, which makes the lack of transparency in corruption cases difficult.
We say that cryptocurrencies are anonymous, since anyone can create a wallet and start operating in the market without having to give their personal data to anyone. In addition, creating a Bitcoin wallet is completely free, you can do it from anywhere with an Internet connection.
Finally, cryptocurrencies are practically impossible to manipulate. That is, no individual can alter the amount of a portfolio fraudulently. We say practically impossible because all of this depends on mathematical models that today are robust, but tomorrow could no longer be so.
As a summary, these are the main characteristics of cryptocurrencies. Do you want to know more about them? Below we present a series of articles so you can learn everything about them.
Author bio
Jayasuriyan is a Digital Marketing Executive at Blockchain development company. He designs marketing strategies with the intention of using high-quality content to educate and engage audiences. His specialties include social media marketing specialist, SEO, and he works closely with B2B and B2C businesses, providing digital marketing strategies that gain social media attention and increase your search engine
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.