What are crypto currencies?
Cryptocurrencies first entered the digital scene in 2009, with Bitcoin as the first of its kind. During 2011, the second wave of new cryptocurrencies hit, with Namecoin and Litecoin. Since then, over 530 cryptocurrencies have emerged. Some of these currencies are agnostic to the consumer base, while there are specific cryptocurrencies that attract a specific demographic.
Cryptocurrencies are currently understood and treated strictly as digital assets (virtual coin/currency) and not as fiat currency. However, there are a growing amount of merchants willing to accept coins as payment, which inevitably raises some interesting questions regarding the necessity and associated tastes involved in analyzing these kinds of currencies over traditional fiat currencies.
In Satoshi Nakamoto’s (founder of Bitcoin) paper, Bitcoin: A Peer-to-Peer Electronic Cash System, Satoshi outlines his reasoning for creating Bitcoin, which can briefly be summarized as providing a service that “…is an electronic payment system based on cryptographic proof instead of trust, allowing any two willing parties to transact directly with each other without the need for a trusted third party”.
However, what was left out of his paper was the additional philosophic undertones promoting a kind of libertarian, democratic and anarchy-capitalistic philosophy. What is implied in the quote provided above is the end of the need for a digital third-party bank or PayPal system that facilitates and validates transactions. Satoshi’s notions of cryptocurrency directly promote the free flow of capital, as well as maintain the concept of relative anonymity in transactions. In this way, the notion of cryptocurrency, dissolves the need for the traditional trust based fiat currency, and instead supplements a form of currency that does not require additional transaction costs that are often associated with reversible and negotiable transactions. As of November 2014, the total market value of all cryptocurrencies is $6.4bn, according to coinmarketcap.com. Please read more about crypto currencies and the companies behind Swypto Exchange atwww.lxccoin.com. and www.strategabiz.com..