The dollar and the cryptocurrencies

The dollar and the cryptocurrencies

Currently the general market has been changing and cryptocurrency calls have been changing the economy to be a new type of currency in which to bet. The dollar, as always has been the strongest currency in the world, and is being overshadowed by what cryptocurrencies are.

First of all, we have to talk about why they are cryptocurrencies, the reason of their name and the differences that this has with respect to a currency such as the dollar.

The cryptocurrencies can be defined as a digital asset without physical presentation that is capable of being used as a means of payment among a group of people who agree with its use. That is, physical operations can not be performed because they are a digital, encrypted currency.

A very marked difference that this presents is that people can use them without having an intermediary entity that has to legitimize the currency for its use, in this case, these would be the banking entities of each country, the central banks.

At least, an example of this may be a purchase we make. We bought a Skittles bag, and it cost us $ 3. We know that the entity in charge of giving legality to the transaction that is being made by endorsing the exact amount that is being transferred.

In the digital case, these currencies do not need anyone, they are direct transactions and there are no ways to avoid them since they are supported on the basis of data distributed among all the participants

Speaking of safety, we can mention that this type of coins is super safe. There are several ways to encrypt them, which helps keep them away from hackers who want to take advantage of them.

The Blockchain, is a modality that has a high resistance to cyber attacks since the information is recorded in several blocks and the hackers would have to handle the information and modify it in each block to get what they want, and this is a very big job and that makes them safe from theft, that is why people place their trust in them.

Among the differences that these have with a national currency, it can be said that these can not enter a hyperinflationary state because of the excess of emission since the origin of this is in an emission regime based on different rules given in a computational algorithm . This kind of thing can happen unless the state entity regulates the issuance of the currency correctly.

Of course, while inflation is not high in this type of currency, deflation is. So one day can be worth a high amount, and the next day can go down in value as magic.

The future of the economy is found in these types of currencies since many are being used for different transactions and being recognized by the general public, which generates confidence in them, allowing more people to use it.