In recent months, the subject of cryptocurrencies has caught our attention, this new method of exchange of value that is managed and spread over the network. Currently there is no official census on this new “investment” method, but some estimate that there are around 700 or 800 cryptocurrencies and some others estimate them above 1,000. From 2009 to date the appearance of these new values increases rapidly.
What is a cryptocurrency?
The cryptocurrency is a trust value in which it is the users who grant them a value according to their offer and demand. They are therefore a medium of exchange within a digital world to purchase products or services. From the outset they seem to have many similarities with money, but it is not so: the first big difference has to do with the fact that cryptocurrencies do not have the support of a central bank or an economic body. By its nature, this new exchange system prevents certain clear rules on the use, management, purchase and sale of these new forms of value.
Why is it so popular?
There are many stories about cryptocurrencies, just search the internet for a few minutes to find “success” stories about these “coins”. Some link young people who a few years ago bought them for a few pennies on the dollar and soon after obtained millions for them. Some others mention them as the new economic system of the future, etc. For example, in mid-2016, cryptocurrencies and especially bitcoin became popular and from there its fame spread throughout the world, causing such euphoria that it led to volatility never seen before.
The Venezuelan case is also another famous case of these new values: the same occurred largely because when the bolivar lost value and a large number of bills were withdrawn from circulation, some Venezuelans began to chart a new economic route and found refuge in the bitcoin. These Venezuelans have been baptized as miners. It should be noted that in the Venezuelan case there has been a great exchange of products that are scarce in that country through this currency.
The benefits of cryptocurrencies
Proponents of this system mention among its benefits low rates or even the zero payment of taxes by this system. They also mention the existence of a “transparent currency” that acts outside monetary policies or interests and that has a value granted by users. In addition to the above, emphasis is placed on ease of trade where there are no currency conversions, only a single value.
For some reason in recent days, many media have mentioned some cryptocurrencies as the opportunity to become a millionaire, which is very adventurous at first.But is actually part of the promotion that is made to these digital currencies and that has had an impact. About the millennial generation who have been told this is the chance to become a new Wall Street wolf. You can register here for earn benefits.
Recall that the purpose for which cryptocurrencies were created was exchange and not speculation. And when things sound too good or too easy we meet people who raise their expectations about their investments in cryptocurrencies and with it comes the frustration of not having become millionaires easily or in a short period of time.
The bad thing about cryptocurrencies
As previously mentioned, cryptocurrencies are a system of exchange of values through the network, which has no surveillance by any authority ; However, this situation of tax evasion is what has alerted various economies who are already raising the need to look for padlocks for these values, since they could be used by criminal groups to launder their income.
Some economists have warned about the possibility of having in the future a large number of defrauded by these digital currencies.Which is not a distant scenario, since there is no physical entity or body that supports these values and with it fraud and lies are the order of the day.
As if that were not enough, there is a detail that generates a great obstacle for investors.The cryptocurrency is an exchange value and this brings with it the difficulty of converting those values into official currencies, called dollars, euros, pesos, among others.
