What is cryptocurrency?
Cryptocurrency is an electronic currency that works on the p2p principle (i.e., people2people), WITHOUT a third party guarantor (banks or individuals). This currency is owned only by its holders, and it is kept by the holders and not by the bank.
The whole network acts as a guarantor in this case. There is no internal or external owner or manager of the web, and as a result, funds cannot be frozen or seized.
What is this cryptocurrency in a physical sense?
This is a cipher, a hash code. It cannot be faked for several reasons, which we'll cover in this blog post. The entire network is responsible for checking the currency, not a person. Accordingly, you only need to be afraid for the password to your wallet and not for fakes.
What are the types of cryptocurrencies?
There are many types of cryptocurrencies. The first currency is Bitcoin.
On this service, you can watch a list of significant cryptocurrencies.
A little slang
Crypt - cryptocurrency
Bitok - bitcoin
Mine - mine cryptocurrency
Farm - a place where the crypt is mined
What determines the price of a cryptocurrency
Everything is pretty simple here.
As we know from economics, the price in a general sense is determined by the supply and demand ratio. Accordingly, while demand is higher than supply, the price is growing. Conversely, when there are more people offering bitcoin than willing buyers, then the price falls. The jumps on the exchanges depend on this.
Why did cryptocurrencies rise in price six times?
Where did I get it six times? I did not delve into the exact calculations; I just took the Bitcoin price for
08/08/2016 and on the day of writing the article 08/08/2017
A year ago, one cue ball was worth $ 582 and now $ 3444.
3444/582 = 5.917
Based on the previous point, you understand that, in general, the cost increases due to the complexity of mining. I will list all the growth factors.
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the complexity of mining is growing; more computing power is needed
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the number of coins is limited in advance, and according to its idea, the emission is reverse
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the number of countries accepting currencies is growing
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the number of people learning about the coin is growing, more and more money is being invested
Let's look at the first and last reason - it is more and more challenging to get a coin, and there are more and more people who want to - recall the definition of the price (supply and demand), and questions will disappear.