Today we begin a short excursion on an essay on the topic of making cryptocurrency as a modern monetary instrument. Let’s analyze what and in what form we – the human race – perceived as money, and for what we used them. And also we’ll look at how the emergence of new types of financial instruments affects the existing economic system.
What is Cryptocurrency?
Cryptocurrency is a digital (virtual) currency, the unit of which is a coin. The coin is protected from forgery, because it is an encrypted information that can not be copied (using cryptography and defined the prefix “crypto” in the name). And how does the electronic cryptocurrency differ from ordinary money in electronic form? In order for ordinary money to appear on the account in electronic form, first they must be deposited into the account in the physical incarnation, for example, through a bank or payment terminal. That is, for ordinary currency, the electronic form is only one of the forms of representation. Cryptocurrency is emitted directly on the network and is not connected in any way with any ordinary currency or with any official currency system. Thus, the answer to the question of “What is Cryptocurrency?” in simple words will sound like “this is electronic money”.
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