Why did a lot of cryptocurrencies appear?

2016-07-10 00:00:00:

Seven years ago, people did not even think about the emergence of a completely new type of money. However, it happened. In 2009, the worlds first digital currency, Bitcoin, entered the arena. A new era has begun, marked by the massive development of many types of cryptocurrencies. The unique invention of Bitcoin was a powerful impetus for the development of the field of alternative monetary units.

The founder of digital currency - Bitcoin

The founder of Bitcoin is the Japanese programmer Satoshi Nakamoto. This name remains a mystery to this day, because it is still not reliably known who he really is. Whether its a real name or a fictitious one. There are various versions, they periodically appear on the Internet, but none of them has been proven. However, the main thing is what a financial product created by ingenious developers is. Then there was still no variety of cryptocurrencies, it was the moment of the birth of the first and only digital currency in the world. The idea was to create a virtual digital analogue of gold. Bitcoin does replicate many of the properties of the precious metal:

The limited release of cryptocurrency, like the amount of gold in the bowels of the earth, has a limit.
The cost of Bitcoin is quite high, regular gold is also always in price.
The demand for cryptocurrency is huge, and gold has never lost demand.
Bitcoins are mined in a complex way, and the job of a gold digger is not easy.
There is one more similarity that Bitcoin acquired later. Many types of cryptocurrency have arisen, as has the production of various alloys like gold.

Bitcoin has become an attractive virtual currency. It is used for many types of mutual settlements, and is also transferred into cash using exchangers, among which baksmany.com stands out, a relatively new resource that has already earned the trust of users. It offers its clients favorable terms, reasonable commissions and high-quality technical support.

Bitcoin set an example for programmers and cryptographers who began to create similar types of currencies. The innovative blockchain technology on which the Bitcoin system is built has become widespread. It is used in various fields of activity and, of course, to create a variety of cryptocurrencies.

New types of cryptocurrencies

Litecoin followed Bitcoin at the end of 2011. Its founder, Charlie Lee, set out to create an analogue of silver. So, after the "digital gold" appeared "virtual silver". Based on the methods of creating Bitcoin, programmers have developed an easier and faster way to mine. Litecoins are mined almost four times faster than gold crypto coins. Its rate, like Bitcoin, is constantly growing, the issue limit is 84 million.

Among the many cryptocurrencies, the Primecoin monetary unit has a symbolic bronze status. Its creator conceived the currency on the basis of the initial scheme, but made adjustments during the period of its development and formation. He set out to make the solution of mathematical problems useful to people. Bitcoin mining is just abstract mathematical operations involving high powers, as a result of which unique digital codes are born. In the production of Primecoins, the process of calculating and obtaining a result is attached to some areas of human activity and benefits society. In addition, miners receive more substantial rewards.

There are currently many varieties of cryptocurrency released, each with its own pros and cons. Digital money Percoin, which appeared a year after Bitcoin, acquired a distinctive feature - emission without restrictions. On the one hand, this will have a positive effect on miners who can make money from mining. However, it cannot avoid inflation, which is about 1% annually. Percoin differs in that the mined crypto-coins are received not only by "miners", but also by cryptocurrency developers.

The complex of alternative servers provides users with the opportunity to become the owners of the Namecoin cryptocurrency. Among the variety of crypto coins, it is very similar to Bitcoin in the amount of issue, it is also planned to be released in a strictly limited volume. Just like the first digital currency, it has no control center. Serves as a settlement tool for domain registration services. Namecoin has a powerful security system.

Bitcoin creation technology also formed the basis for the emergence of Freycoin. The authors of this invention set the goal of solving the problems that have accumulated with money savings. Their release is limited to 100 million.

This is not the whole list of new cryptocurrencies, there are actually a huge number of them, numbering in the hundreds.

Prerequisites for the emergence of many cryptocurrencies

The invention of a new generation of currency could not leave indifferent programmers and cryptologists, who actively set about developing new types. Bitcoin impressed them with its positive qualities and significant advantages over traditional money. The use of this cryptocurrency is not limited only to non-cash payments within the system, it can be bought, sold and exchanged for another currency for withdrawal purposes. This can be done using online exchangers, in particular, the convenient baksmany.com service.

There are typical reasons that motivate new developments, as a result of which many new cryptocurrencies have appeared:

The new type of digital money is characterized by the principle of decentralization, which is an alternative to the traditional state-run banking system. This element of democracy is based on technological advances.
Confidentiality of payments. This principle is in conflict with the existing policy of monetary relations. However, it is attractive to many users who seek freedom of action.
The independence of the system contributes to further development, the emergence of similar independent currencies and their derivatives (forks).
Confronting inflation through limited emission and the rise in the value of Bitcoins. It is seen as a convenient investment vehicle.
Minimum deductions or their absence for making money transfers. Unlike the banking system, where deductions are the main component of profit, in cryptocurrency systems, overhead costs are minimized, which makes it possible not to charge high interest rates.
All these factors confirm the uniqueness of the new formation currency - Bitcoin. Even if it is not yet so perfect, it has great potential and prospects, which is a tempting example for the creation of such currencies.