The blockchain technology can be used for e.g. to vote, make anonymous money transfers, electronic contracts and much, much more.
If you make use of Blockchain technology that cryptocurrencies make use of, then there is also the great advantage that all transactions are open, which secures against cheating.
Large companies have also begun to develop blockchain technology. Maersk and IBM have joined forces to develop a system with blockchain technology that was launched in 2018, and are expected to be able to reduce the price of shipping by up to 15% in the long term. With Finexro you can have the best options here.
How does Cryptocurrency work?
Cryptocurrency is a digital currency used to make financial transfers as a starting point. By e.g. Bitcoin, which is exclusively designed to be a currency, so in the whole technology behind Bitcoin there is a limit to how many Bitconins can exist. Cryptocurrency is also completely anonymous and for transfers with cryptocurrency, there will be a code instead of your name and address, which will ensure that your personal information will never be available.
The Right Valuation
When it comes to valuing a cryptocurrency, it is very reminiscent of stocks. This applies to supply and demand, as we also saw with Bitcoin, which in 2017 experienced an explosive growth of many 1000%. There is no national bank or financial institution that has the opportunity to regulate it, which also means that the greater the value of the various cryptocurrencies, the more difficult it becomes to influence the various exchange rates of cryptocurrency.
- With our traditional currencies, such as the European Euro, are also determined by supply and demand, but here there is also another factor that affects the exchange rate, namely the European Central Bank, which also has the opportunity to make purchases of the Euro to increase demand and raise prices.
- This has been criticized by many experts and sees that cryptocurrency has great potential, as there are significantly fewer opportunities to influence the various cryptocurrencies and their exchange rates and valuation.
In the beginning, there have been several cryptocurrencies that have experienced price manipulations, which, however, will always adapt themselves again in the long term, just as there will always be ups and downs in new markets. It is no different than with the stock market.