The global cryptocurrency market that exists outside the legal framework has grown significantly in the past year. States can no longer ignore him.
Computer fans and traders and even ordinary people are interested in the sharp rise in the rates of virtual currency against the dollar.
But practically all over the world the cryptocurrency market is not regulated by the state or is regulated, but partially.
The slogan is relevant for her: "The one who is faster will get rich".
The rate of the bitcoin created in 2009 at first hesitated, then "stagnated" and only after 2015 began to grow sharply. Last year, bitcoin became the leader in currency growth, and in the past six months it has grown 5 times. But during this time, other cryptocurrencies have also grown significantly, which have managed to squeeze out Bitcoin. And today he is no longer the king of the market, but simply its leader, with a share of less than half. And it is possible that this share will decrease in the future.
Judging by the total capitalization of the virtual currency market, it has grown almost 10 times over 8 months.
It is not surprising that investors, professional traders and ordinary people, far from knowledge in the field of IT, are interested in such growth. Everyone wanted to join the grand feast.
Definition of cryptocurrency
A comprehensive answer to the question: "What is cryptocurrency?" not yet, due to the "emerging" of more and more new species, significantly expanding its definition.
It's okay. After all, there is no exact definition of money either, since it is designated by a number of terms: M1 ... M4 and their derivatives. Depending on the tasks, one or several of them are used. It is the same with cryptocurrencies. In addition to the formal key definition of their creation and operation using cryptoalgorithms and blockchain.
If we take bitcoin as a benchmark, then it can be argued that its main feature is the absence of an issuer, decentralization, the definition of everything by means of a pledged program.
The absence of an issuer entails the impossibility of the influence of banks, tax services, judicial, private and public authorities on the transactions of certain participants in the payment system.
Transfers of digital currencies are irreversible. Cancellation, blocking, and forced transactions are not possible.
But this definition cannot be considered complete. There are now cryptocurrencies that have an issuer. For example, "10 Ripple" is a transaction currency that is only available to banks, but not to "commoners".
Usually, in such a cryptocurrency, the issuer notifies in advance about the number of issued "crypto-money" and subsequently, as they enter the world market, over time it loses control over them.
Decisions can be made by voting of the owners of the cryptocurrency. In the event of a divergence of votes, it may split, as was the case with ether and bitcoin.
It is also impossible to talk about virtuality and the lack of a physical carrier of the cryptocurrency, since the casacius-coins have been "published". This is the real embodiment of bitcoin in the material sense, which, if necessary, can be "put" in your bitcoin wallet. But even if you do not take them into account, there are many services that issue a familiar debit card to your Internet wallet
VISA, with which you can make purchases in various stores and carry out transactions at any ATM. Bitcoins are converted in the same way as the VISA ruble card works abroad. Thus, the difference between cryptocurrency and ordinary money is erased.
In essence, bitcoin is money. According to Marx, it performs all the main monetary functions: world money, accumulation, circulation, payment, measurement of value. The first two functions are very good, the rest are partially or rather rarely. In this case, they should be attributed specifically to money, but not to foreign ones, because no country has yet issued them. These are private funds.
It is believed that cryptocurrencies are not backed by anything. But fiat money is backed only by confidence in the Central Bank, which issued it. Many admit the idea that the Fed will not print more dollars than is needed for circulation, and they will not fall in value. Likewise, cryptocurrencies are secured by trust in them and the underlying algorithm.
The issue of bitcoins is limited to 21 million, and their circulation today is about 17 million. Therefore, Bitcoin mining is becoming more expensive day by day.
Therefore, investors who invest in bitcoin have confidence that bitcoin will grow in value for a long time and keeping their savings in it is a profitable solution.
Heated debates about the nature of electronic currency continue, and their legal status has not yet been determined in many countries, including USA.
It is difficult for depositors to work with digital money. Cryptocurrencies have become the lot not of institutional investors, but of trade of "private traders". And private individuals are satisfied with the lack of regulation: they can not pay taxes, because it is not yet clear what a cryptocurrency is - a financial asset, money or property.
It is also important that inflation is embedded in the mechanism of fiat currency, and deflation is in cryptocurrencies. Common world currencies are falling - some quickly, others slowly. And it seems that they, on the contrary, are growing. World central banks are concerned about stimulating economic growth that requires money. And more and more of them are admitted. But there will be only 21 million bitcoins. In relation to fiat money, bitcoin should grow for a long time.
Naturally, taking into account the size of the digital currency market, governments cannot tolerate large taxes that might elude them. Therefore, they make various decisions on their legal status, and some even prohibit them.
The Topic of Article: Cryptomania. Bitcoins, blockchain, ether entered our life.