Technological advances have marked humanity, in very drastic ways, as in the case of the creation of cryptocurrencies and bitcoin, have shaken the financial system, for those who want to know about the subject an initial question arises: Is cryptocurrency different from bitcoin? or are they two different advances?
A cryptocurrency is a digital asset that employs cryptographic encryption to guarantee its security and ensure the integrity of transactions, and control the creation of additional units.
What is bitcoin?
Bitcoin is a virtual currency or a means of electronic exchange used to acquire products and services like any other currency. It was created in 2009 by Satoshi Nakamoto, and works thanks to blockchain technology.
It is decentralized, that is, there is no authority or control entity responsible for its issuance and registration of its movements. Its transactions are irreversible, and it eliminates the double expense of a security.
Is cryptocurrency different from bitcoin?
As we can see, bitcoin’s characteristics are fully consistent with a cryptocurrency, therefore, Bitcoin is not only a cryptocurrency, but it is the strongest cryptocurrency, according to CoinMarketCap data.
Cryptocurrencies became known thanks to Bitcoin, its creator says “Bitcoin was born with lofty ambitions: to provide citizens with a means of payment that enables the execution of fast, low-cost value transfers, and that, in addition, cannot be controlled or manipulated by governments, central banks or financial institutions”.
Are there more cryptocurrencies like Bitcoin?
After the creation of bitcoin, many more cryptocurrencies emerged, some have endured over time, others have disappeared due to their project and lack of content.
To create cryptocurrencies, it is crucial to have knowledge in cryptography, or at least, to know how to program in order to clone code from another cryptocurrency, and thus be able to create it. There are currently more than 10,000 cryptocurrencies, each with a different purpose.
Properties that make cryptocurrencies unique
The reasons why cryptocurrencies have gained momentum are many, among the main ones are:
1. Confidentiality
Cryptocurrencies are used anonymously. That is, users’ accounts and transactions will never be linked to their real-world identity.
2. Speed
It only takes a few minutes for the cryptocurrency transaction to be confirmed and become effective.
3. Irreversibility
After the validity of the transaction has been confirmed, no changes can be made.
4. Global
Cryptocurrencies can be sent or received from anywhere, thanks to the worldwide operation of the cryptocurrency network.
5. Security
Cryptography guarantees the funds of each user. This cryptographic system is considered unbreakable in all its aspects.
6. Unrestricted
Exchanges can be made on any cryptocurrency platform or marketplace, as well as can be sent from and to anywhere in the world and without prior authorization.
What can be done with cryptocurrencies?
The uses of cryptocurrencies are manifold, although they tend to be used mainly for trading activities:
- Buying products: Many establishments now receive cryptocurrencies as a means of payment.
- Withdraw cash: There are hundreds of ATMs in different countries that allow cryptocurrencies to be exchanged for cash.
- Investing: Although it implies a high risk due to its volatility, it is worth betting an amount of money that you are willing to lose.
Cryptocurrencies are real and are not owned by any state. They are good for many things and for those investors with a vision for the future. Investing in cryptocurrencies involves generating large profits through a relatively young market with many risks.
And without a doubt Bitcoin is a cryptocurrency, the most important one, the one that has marked a path that has not been easy to travel and that will continue for a long time to come.
The views and opinions expressed herein are solely those of the author and not necessarily those of Bixxus. Your cryptocurrency investments involve risks, so you should do your own research.
