CRYPTOCURRENCY AND BLOCKCHAIN ​​- HOW TO UNDERSTAND DIGITAL ASSETS? – Echo of the Island

Cryptocurrencies have been part of our financial universe for some time. It is however still difficult for many people to understand what these digital assets do and whether we should be positive or skeptical.

When Bitcoin was first introduced in 2008, much of the world saw it as a joke. However, cryptos and bitcoins have grown in popularity and value considerably. Since then bitcoin has soared to extreme highs and a thousand other cryptocurrencies have sprung up. Today is over 20000 different cryptocurrencies in the world.

And even if some people remain skeptical, it has become increasingly common to invest in cryptocurrencies and now it is even possible to use this currency as a means of payment in specific transactions. So what is this world of cryptocurrencies and blockchains and how has it changed our economic situation?

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Understanding Cryptocurrencies

It can be difficult to understand what technology is behind this digital revolution. And it must be done one step at a time if you want to understand this complex world of cryptos. bitcoin was the very first cryptocurrency to introduce and it is by far the most famous and popular crypto. And at its current value, it’s completely impossible for someone with an average income to even come close to buying a bitcoin.

Bitcoin price have long been available for those interested in learning more about this specific cryptocurrency. And it’s quite interesting, so the fascination makes sense. Cryptocurrencies are all strictly digital assets, which means that they exist nowhere other than digitally.

This is what made them difficult for many people to grasp. How can something strictly digital have such value? And that’s still a big question with very different answers. Those most positive towards cryptos will say that the future is digital while the skeptics see no future for this type of currency.

Blockchains – the pros and cons

The technology behind cryptocurrency is called blockchain. And that’s what makes them so difficult to understand while presenting a technological breakthrough. Blockchains are an excellent digital chain of data connection, and it takes a huge computer to produce blockchains.

However, what makes the blockchain interesting is that you can transact without an intermediary. No bank or other institute can be involved in a transaction because it only happens between the one who buys and the one who sells. Make it a more private type of interaction and prevent banks from tracking their customers’ financial flows.

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Those who are positive towards crypto see it as a way to dissolve the power of banking. What is worrying with this type of technology is that it can be used to support or transfer money in criminal cases without ever being found because there is no control over the transactions. Even though blockchains make transactions much more secure, they have their problems.

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