Crypto currency – its main purpose and the reasons for its creation. Alexander Sivtsov.

In this article, we will talk about a financial instrument, which is very quickly gaining popularity in the modern financial world, the name of which is the Crypto currency.

Crypto currency is a kind of electronic monetary unit, received its name based on the method of its creation and control. It is based on cryptographic methods. The very term of the crypto currency was fixed after the article published in 2011 in the Forbes magazine about Bitcoin “Crypto currency”.

Crypto currency – difference from ordinary money in electronic form

The main difference between the crypto currency and ordinary money in electronic form is how these monetary units appear in electronic form. To express the usual monetary unit in electronic form, an account is opened in the bank or an electronic purse  to which money is deposited. In other words, the monetary unit simply takes on an electronic form when deposited into the account. In the case of a crypto currency, it is already emitted in electronic form and has no physical form.

The main purpose of creating a crypto currency

The main purpose of creating a crypto currency was the creation of such a payment instrument that would have very high security during transactions between someone and without the participation of third parties acting as a guarantor of payment performance, which banks currently use when using the usual monetary unit. It is the absence of a third person in the execution of payment in the crypto currency that makes it possible to hold it with a minimum commission or without it at all.

Crypto-currency – Features

The peculiarity of the crypto currency is the absence of any administrator, therefore, neither banks, nor tax services, nor any other government agencies can influence transactions in the crypto currency. Also, one of the main features of the crypto currency is that it is not subject to inflation. Since this currency is issued in a limited amount and at any time, as in the case of all the money we are accustomed to, it can not be emitted in a significant amount. Impossibility of the effect of inflation in the future may lead to the fact that the crypto currency will become one of the main tools for preserving capital, replacing the world currencies, which today serve as security tools.

Regularly monitor the trader’s blog https://esterholdings.com/en/category/blog-trejdera/ on the website of Ester Holdings Inc., where you will not only learn more about what a crypto currency is, but how you can earn on it.

Alexander Sivtsov