Cryptocurrencies are being touted as the future of money. Some see them as valuable because of their endless uses, while others are less convinced. Cryptocurrencies are not yet widespread, but more and more companies and financial institutions are buying them. If you are unsure what they are specifically, this article will help you.
What are they?
Cryptocurrencies are just like any other currency. With them you can buy other goods and services or trade them. They differ from paper banknotes because they are not physical - so you can not put them in your wallet. Cryptocurrencies only work virtually.
Cryptocurrency units can be purchased by brokers or generated through an online process called "mining" and used to make payments or save money anonymously.
Bitcoin, a name you have probably heard of, was the first cryptocurrency and continues to be the most widely known people. Given the success in global recognition, Bitcoin has become a milestone for all other altcoins, or "alternative currencies" that came after it.
However in March of this year, Bitcoin moved into second place as Tether became the largest cryptocurrency shown.
How do they work?
Take Bitcoin as an example. Each cryptocurrency is essentially a computer file stored in a digital "wallet" and can be accessed from smartphone applications or Internet-enabled devices. These files are transferable (in whole or in part) from person to person via blockchain.
Although not all of them work the same way, most cryptocurrencies use blockchain technology to make secure transactions.
Blockchain is the basic cryptographic technology that makes currency transfer secure. Each transfer is recorded in a virtual public book. Security makes it difficult to counterfeit cryptocurrencies or transfer currency that is not yours.
How safe are they?
Sa më shumë transaksione të regjistruara publikisht, që i shtohen blockchain, sistemi është akoma më i sigurt. Kjo nuk do të thotë që kriptomonedhat nuk janë të prekshme nga sulmet kibernetike, mashtrimet, vjedhjet ose pastrimi i parave.
Ekziston mundësia që të humbni portofolin tuaj ose të fshini Bitcoins duke i humbur përgjithmonë. Kriptomonedhat mund të jenë të paqëndrueshme për shkak të tregtisë spekulative - si me tregtinë në çdo mall - kështu që mund të ketë rreziqe të bashkangjitura për të investuar në to.
A përdoren gjerësisht?
Shumë njerëz që përdorin kriptomonedhat i preferojnë më shumë se monedhat tradicionale sepse nuk kontrollohen ose rregullohen nga qeveritë ose bankat dhe transaksionet janë anonime. Ndonëse disa vende si Maqedonia e Veriut dhe Algjeria kanë ndaluar përdorimin e Bitcoin, të tjerët janë më të hapur për t’i përdorur.
Cryptocurrencies are not yet widely used by businesses or shops. But an ever-expanding list of companies is choosing to accept cryptocurrencies as a legal tool. Elon Musk Tesla for example.
PayPal online payment service said last October that it would allow customers to buy and sell using Bitcoin.
Some companies such as Google and Amazon plan to issue their own cryptocurrencies for transactions involving goods and services specially provided by them.
Burimet: CoinMarketCap, Euronews, Forbes
