The 21st century is the century of high technologies and innovations. All spheres of society are changing, transforming and transforming. Information technologies are gaining popularity more and more and penetrate into all aspects of public life. The economy was no exception, so the transformations also reached the money, namely, a new digital currency appeared. We live in a market system where demand, as you know, creates supply. It is quite logical that the modern information society needed the emergence of a new financial means of payment, more innovative than ordinary money. This means of payment has become a new digital currency, namely cryptocurrency.
The foundation for the emergence of this type of finance began to emerge at the end of the 20th century. In 1983, the concept of using
e-money (authors Stefan Brands and David Chaum). This concept founded the sphere of the economy in which the cryptocurrency directly exists and is implemented. A little later, DigiCash first developed and began working with a cryptographic system to provide a kind of unknown and anonymous transactions. In 1997, Adam Buck developed the basis for the block system and entire blockchain chains. This foundation has taken a huge step towards the emergence of cryptocurrency. A kind of "fathers of bitcoin" in their concept was described by Niko Sab and Wei Dai in 1998. They were the first to present a description of the concept of the first cryptographic finance.
A more modern mention of cryptocurrency dates back to 2008. Then, a rather narrow circle of promising and well-known IT specialists thought about creating a new digital currency. The ideas would have remained dreams if Satoshi Nakamato had not outlined in his article the concept of creating monetary units based on cryptography, or the so-called “crypto-money concept”. This figure is considered the progenitor of cryptocurrency and, in particular, Bitcoin. A year later, the first cryptocurrency network was launched - the currently known Bitcoin network, and later electronic wallets appeared. However, the very concept of "cryptocurrency" appeared in 2011 after the publication in the magazine "Forbs" of an article about the Bitcoin system "Crypto currency" (Cryptographic currency).
Cryptocurrency is a virtual (electronic) decentralized currency, which is a unique cryptographic code. A cryptographic code is a blockchain, which in turn is represented by a sequence of blocks (cells). Each cell stores information about transactions, i.e. transactions that were carried out in the cryptocurrency network with a specific coin. From here we can conclude that the block stores information about one currency, and the blockchain contains data about all coins, since it is a collection of blocks. It is important to note that a unique cryptographic code exists only virtually, i.e., the cryptocurrency has no material analogue.
The advantages of this type of finance include: 1
Versatility and high speed of transactions with this currency. At the same time, there is no need for the services of intermediaries, and the cost of operations with cryptocurrency is minimal.
The ability to consider and use cryptocurrencies as a means of earning, as financial assets. This opportunity is formed due to the complication of the process of mining the currency, i.e., a trend of increasing cost can be identified. So at the beginning of 2010, 1 Bitcoin was worth about $0.0025. At the moment, for 1 Bitcoin they give about $ 8,000.
The possibility of using cryptocurrency as a means of investment. So many investment funds and banking institutions around the world are already investing in bitcoins.
Increasing purchasing power. Because in different countries, cryptocurrency is gradually acquiring a certain legal status, the number of outlets.