The phenomenon of crypto currencies has taken on a global dimension and even political and banking institutions are starting to take it into account, some with fear, others with excessive optimism. Recall that the most famous of the cryptocurrencies, bitcoin, had a long development and had a worldwide marketing launch with the 2017 Wannacry ransomware attack in which millions of websites and databases were encrypted and a ransom was demanded in bitcoin. to get them back decrypted and usable.
Now E. Musk has given further assistance to bitcoin, while dark sides of this currency are looming, namely the enormous consumption of energy to generate it. Then later he renounced Bitcoins.
In fact, in crypto currencies there are so-called miners who add their transaction to a chain of existing cryptographic transactions, according to the technique based on the theory of public key private key cryptography, erroneously assumed to be universal truth.
The security of the authenticity of the coin comes precisely from the concatenation of many elements that are gradually added, Thus ensuring the buyer from any fakes, this led to the creation of the first web framework with a defined value, while a simple web image could be easily copied. The miners propose their own transaction which can be accepted or rejected by the system, then make the payment with currency created on the spot.
The system
Assuming that Bitcoin was created by a group of hackers named after the founder NAKAMOTO, who we don't know really existed, it was very successful both for its use by crime and by who wanted to operate in dictatorial regimes by subtracting profits from the rapacity of the dictatorial regime, since it is impossible to access the currency if you do not have the private key. The fact is that it steals huge amounts of money even from democratic nations.
The risks
In addition to the possibility of losing the private key that the system does not know, therefore losing all one's money, cryptocurrencies, not being tied to real assets such as companies or states, are purely speculative and risk seeing their value fluctuate when Someone decides to lower its value.
7000 followers
There is talk of 7,000 cryptocurrencies in the world, where start uppers are looking for easy earnings with cryptographic systems that are still based on the HASH algorithm, an algorithm that adds an encrypted key that cannot be decrypted. Then, as in 19th-century US banks, when many banks issued banknotes, many went bankrupt, making investors 'and customers' savings vanish. The process will inevitably lead to the simplification of crypto coins in circulation, leaving only the strongest ones alive, as happens in many sectors, we can mention the concentrations of companies in the automotive field.
Le Stable Coin
Important companies and banks are accepting the principle that there can be creators of coins outside the central banks, and try to use or generate cryptocurrencies guaranteeing a parity with the dollar, or accumulate the amount of dollars equivalent to the value of the crypto currency issued, similarly how in the past there was the convertibility of the dollar and other currencies into gold.
The banks This guarantees against the excessive risks of bitcoins, but evidently it is based on the concept of the banking system that the same money runs, that is, those deposited by one are lent to another. If everyone goes to collect their savings at the same time, it happens as in 1929 with the consequences that we all know. This is why they are studying negative interest on current accounts, in order to force savers to choose forms of investment whose withdrawal of money is much more difficult.
Is there an alternative?