A cryptocurrency is a digital medium for the exchange between people or entities without the intervention of a Central Bank. It uses cryptography for the assurance of transactions, the creation of additional units (mining) and the registration and verification of transfer of assets constituting a database of public transactions that uses blockchain or blockchain technology as a security mechanism. .
The first cryptocurrency that started trading was Bitcoin in 2009 and, since then, many others have appeared with different features and protocols such as Litecoin, Ethereum, Ripple, Dogecoin.
In cryptocurrency systems, the security, integrity and balance of your accounting is guaranteed through a structured network of mutually verified agents called miners who are mostly public in general and actively protect the network by maintaining a high rate of Mining algorithm processing, in order to have the opportunity to receive a part of the cryptocurrencies.
The security of the cryptocurrency is very high since although it is mathematically possible to break it, in practice it requires extremely high computational resources to be assumed.
The origin of the Cryptocurrencies dates back some years. In the year 2008, the financial crisis of the United States was in full swing, feeling the effects of the economic disaster on people around the world, being one of those moments in history where the problems of national currencies showed their great magnitude. The US financial crisis caused the devaluation of the dollar, affecting the entire world.
When the banks found themselves in trouble due to the low value of the currencies and the cut in interest rates, governments were forced to bail out, obviously with taxpayers’ money and, as expected, this further devalued the supply of existing money. Although this is a very simplified view of a very complex moment in world economic history, the lesson remains: Central banks manipulate and devalue currencies around the world.