In view of the impending era of cryptocurrencies and their increasing popularity, we would like to share our thoughts about the future of this industry and introduce you to the cryptocurrencies available on the IQ Option platform.
There are a number of reasons why cryptocurrencies are so popular. They are safe, anonymous, and completely decentralized. Unlike conventional currencies, they are not controlled or regulated by any particular authority, and their flow is completely determined by market demand.
They are almost impossible to forge, thanks to an extremely complex system for encrypting each transaction that also provides complete anonymity and security for every user.
Will cryptocurrency be the new norm after 2017? It might be too early to judge.
But there is one thing that we know for sure: cryptocurrencies are now going to be on the minds of experts and ordinary people for the long haul.
Bitcoin and Bitcoin cash
Bitcoin is a digital currency in the unique payment system of the same name, where there is no controlling body and all participants are equal. Bitcoins can be used to make purchases and transfers if the recipient agrees to receive Bitcoin and is able to do so. The main idea of Bitcoin is full decentralization: there is no central bank, government, or any other administrative entity that can influence or control Bitcoin.
As for Bitcoin’s profitability, it is legendary. You can see why: while a Bitcoin was worth $0.003 in the very beginning, it is now trading around $4300.
Needless to say, the ROI is staggering.
Bitcoin Cash is a new currency that arose as the result of a Bitcoin hard fork on August 1, 2017. This is a more scalable replicated block chain of the original Bitcoin with separate blocks that are increased to 8 megabytes.
How the “fork” works is that instead of creating a new block chain starting from zero, the fork simply creates a duplicate of the block chain with the same history.
In actuality, this means that all Bitcoin owners prior to the fork are now owners of the same amount of Bitcoin Cash, since both currencies had the same block chain up until the separation.
At its conception, the currency was worth about $700, but in the following days Bitcoin Cash stabilized in the $250-$300 range.
However, since that time, the new-born Crypto-currency has already won back its positions and has almost returned to initial indicators at about 680 USD per one Bitcoin Cash.
Ethereum is a blockchain-based platform for creating decentralized online services using smart contacts. It is implemented as a single decentralized virtual machine. Developed by 19-year-old Vitalik Buterin, this cryptocurrency collected 18 million dollars in its ICO (initial coin offering) in August 2013 and was launched in July of 2015.
Unlike other crypto-currencies, its creators do not limit the role of the Ether to payments, but offer it, for example, as a means for exchanging resources or registering transactions of assets using smart contracts. In particular, its developers have called the Ether a “crypto fuel” for smart contracts.
The Ethereum technology makes it possible to register any transactions with any assets using a blockchain-type distributed database of contracts, without resorting to traditional legal procedures. This possibility provides competition for the existing transaction registration system. According to The Economist magazine, the technology of smart contracts marks a new era in financial technologies.
In 2017, with an increase of 4000%, Etherium became the second largest cryptocurrency after Bitcoin.
Dash, named for “digital cash,” is an open, decentralized payment system that uses a mechanism called Darksend to anonymize transactions.
This currency has been renamed twice, from Darkcoin in 2015 and Xcoin in 2014. It offers all the features of Bitcoin, as well as instant and completely anonymous transactions through so-called Masternodes. Masternodes mix transaction data to erase all of its tracks, and then get a commission on the transaction.
The main differences between Dash and Bitcoin are:
Transactions in Dash are anonymized;
Dash uses not one, but multiple cryptographic algorithms in combination;
Mining Dash consumes less energy;
Decisions on the further development of the system are made not by individual programmers, but by all members of the Dash network through Decentralized Governance;
The value of this cryptocurrency exceeded the $1 billion mark in May 2017.
We will discuss the Ripple, IOTA, and Litecoin cryptocurrencies in one of the future emails.