Features of cryptocurrencies
Are you wondering why cryptocurrencies are becoming popular and attracting more and more attention from institutional investors? The answer is simple – it is due to their unique features. The differences from traditional fiat currency make them very attractive for investors. Characteristic features of cryptocurrencies thus include:
Independence – Independence from any state authority and a decentralized network; each participant is an independent server, so if one, five, or even ten computers fail, the system will continue to work.
Store of value – cryptocurrencies have a set maximum number of coins in circulation and are therefore not subject to inflation. On the contrary, their value rises with time due to deflation.
Transaction speed and low fees – transactions are generally breakneck and cheap. In addition, the entire system operates 24 hours a day, seven days a week, and cryptocurrencies can be sent worldwide.
Security and transparency – security is guaranteed by strong encryption, transparency by sorting all transactions into a shared history (blockchain).
Universality and simplicity – the advantage of cryptocurrencies is their simplicity. They only require an internet connection so they can be used even in places without a functional banking system.
No boundaries – blockchain has no limits, the number of records is unlimited.
Reliability – only verified records of legitimate operations would appear on the network.
Transparency – you can always check the history of each coin, the records are kept in the public domain, so it is relatively easy to verify the authenticity of each transaction.
Inability to falsify information – if one of the users tries to change the record on their computer, there are still hundreds and thousands of computers with the original item.
Do you think it looks fantastic? You are right. Cryptocurrencies undoubtedly have immense potential and future.