Definition of cryptocurrency
The currency
Currency is money issued by the government and circulated within the economic system and it is paper currencies or coins, and each country has its own currency, for example, the official currency in the United States of America is the US dollar and the official currency in the State of Kuwait is the Kuwaiti dinar except The eurozone, which uses its unified currency in most of the eurozone countries, and the only one that has the right to issue funds for circulation is the central bank, and there are countries such as El Salvador and Ecuador that have declared that foreign currency is legal currency as they use the US dollar as a legal currency inside the country, and there are currencies that are not linked to any A country, which is digital currencies or cryptocurrencies and has several other names, and its exchange rate changes widely within a short period of time, which is the topic of this article.
Definition of cryptocurrency
It is a currency that is available in digital or electronic form only and is not physically “intangible” and is processed using computers or electronic wallets, while physical currencies are tangible and transactions are possible by their holders only, digital currencies can be used to purchase goods and pay for services, and it can be Its use is restricted between certain online communities such as gaming and gambling sites and social networks, it has all the intrinsic physical currency properties, and it allows instant transactions to carry out payments that are executed seamlessly across borders when connected to supported networks, for example a US person can pay Its payments in digital currencies to a remote party residing in Singapore provided that they are both connected to the same network required for transactions in digital currencies, and one of the advantages of digital currencies is that payments are made directly between parties without the need for intermediaries, as for the difference and multiplicity of labels between digital currencies, virtual currencies and encrypted currencies, currencies can be considered Digital is a comprehensive group that includes virtual currencies and cryptocurrencies, and we will discuss in a later article The difference between electronic currencies
Learn about the CBDC digital currency.
Types of digital currencies
Money is no longer limited to currencies, bills and credit cards only, there is money that no government owns and it is decentralized and this money is entirely on the Internet and this type of money is called cryptocurrency and one of the most famous of these currencies is a currency
Bitcoin, which has already been explained in more than one article on this site, so we will learn about other types of these currencies, including:
Ethereum:
Most developers use it to pay to help each other build apps, rather than competing with Bitcoin. Ethereum is supplementing Bitcoin, Ethereum is used to create dedicated crowdfunding platforms.
Litecoin:
Unlike gold Bitcoin, Litecoin is a silver currency. The Litecoin wallet can be downloaded from the official Litecoin website and it is fully encrypted and is useful for people who need to transfer small amounts quickly because it is faster and easier to transfer from one person to another because of its new generation.
Ripple:
Unlike other currencies that avoid banks, Ripple embraces it and was made for banks because of the speed and low cost of global payments, where the bank transfer process is done through Ripple from a customer in one country to another within minutes.
Dash: The idea of Dash as an alternative to PayPal has been manufactured for marketing, many merchants accept this currency as they accept US dollars, Dash can be purchased using government regulated currency.
Zcash:
One of the advantages of this currency is that it maximizes the confidentiality of its ability to protect the identities of all senders and receivers so that each transaction is fully encrypted as it enables users to use the benefits of the public blockchain without providing private information.
Monero:
Another excellent option for those who care about their privacy, this coin is designed to give users complete control over their money in other words, the user is a bank himself because he decides who can and who can’t see where his money is going.
The impact of digital currencies on global markets Some experts fear that the collapse of the cryptocurrency may lead to a global economic crisis similar to the mortgage-backed securities that led to a global economic crisis, and apart from the experts’ concern, these currencies have many benefits such as controlling inflation and transactions Non-frictional, and from other points of view, many investors see these currencies as a means of speculation or hedge against inflation.
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