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What is a cryptocurrency

by Alt Coins

Recently, the term “cryptocurrency” is more often heard in the ears. This name means some electronic, digital money containing some kind of encrypted information. The unit of this currency is called “coin” and the advantage of it is that it is completely protected from counterfeiting. A distinctive feature of the known to us philosophical money, the cryptocurrency has no definite physical expression.

Currently, the only virtual currency that can be used as a means of payment in many online stores and even some cafes, is bitcoin.

The peculiarity of such a currency is also the fact that tracking them by the state is impossible. Therefore, access to information and the impact on operations conducted with them is not available from tax services, banks, bailiffs and other private and public authorities.

When making transactions, the payment of which is done by cryptocurrency, it is impossible to make their return or cancel the transaction. But you can make a temporary voluntary blocking of your cryptocurrency, which will remain in effect until both parties to the transaction agree to complete the transaction.

Advantages of the cryptocurrency:
– if desired, virtually any person has the opportunity to obtain virtual coins, thus earning a living for himself;
– a greater degree of security protects against theft, forgery, and hacking;
– a limited amount of this currency protects it from inflation;
– the difference from ordinary electronic money, the tracking of transactions by which is not very difficult, the owner of a crypto-currency purse always remains anonymous. Known can be the number and some data on the amount;
– it is a completely independent and decentralized monetary unit, the movement of which is not regulated or monitored.

Disadvantages of cryptocurrency:
– if you lose a key (a special password) to access electronic money, the funds in them will not be available;
– there are no guarantees, in case of theft, each user is personally responsible for personal funds;
– This currency is quite unpredictable. The fluctuation of prices for cryptocurrency depends on many external factors (current demand, changes in legislation and others);
– at any time there is a risk of prohibiting cryptocurrency by state structures. In many countries already introduced such restrictions, the violation of which can lead to fines and prison terms.

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