WHAT ARE THE CRYPTOCURRENCIES?

Today, cryptocurrencies have become a global phenomenon that may not be familiar to most people. The vast majority of people have very limited knowledge of what cryptocurrencies are.

WHAT ARE THE CRYPTOCURRENCIES?

WHAT ARE THE CRYPTOCURRENCIES?

So what are cryptocurrencies???

WHAT ARE THE CRYPTOCURRENCIES?

WHAT ARE THE CRYPTOCURRENCIES?

The cryptocurrencies belong to the group of virtual currencies. They are seen as a digital currency instrument such as ‘classic’ currencies, but rely on cryptography to secure the transactions, ownership and creation of new currency units (Tzagarakis and Daskalou (2015))

WHAT ARE THE CRYPTOCURRENCIES?

They are ‘virtual’ in nature ‘and are’ a decentralized unit of digital money ‘, without being involved in the physical world but participating in it by facilitating payments for goods and services (Buntinx, 2015).

In a nutshell, cryptocurrencies are a “Decentralized Digital Money Unit”:

a) is not a tangible form and physical entity, but is a digital recording, which means that it is freely transported from one point to another without being filtered through a legal entity

b) is decentralized, that is, there are no intermediaries and all transactions are not controlled by a bank or an organization.

DECENTRALIZED CURRENCY

«The advantages of a decentralized currency are the following:

• a currency without banks is free from national monetary policies. For residents of countries that have their national currencies destabilized, a decentralized currency can serve as a stabilizing factor and an alternative,
• a decentralized currency isolates customers from bank failures and collapses, as well as huge bank charges and aggressive banking policies,
• payments are made regardless of frontiers, ensuring smooth and cheap international payments, exceeding the current limits of transnational payments governed by national currencies,
• decentralized currencies are not affected by inflation or deflation,
• the only requirement to use decentralized currencies is the ability to acquire and use an electronic wallet. This makes decentralized currencies attractive to the public,
• decentralized currencies are not subject to exchange rates based on geographical distribution, which means that goods and services purchased in decentralized currency will not be depreciated due to customs duties or adverse changes in national monetary values,
• decentralized currencies are a demonstration of blockchain technology, which fosters the further development of decentralized applications. “

 

Koliopoulos, (2019), p.8

 

Can Cryptocurrencies be converted into real currency e.g. Dollar or Euro?

– Of Course!!!!!     (see. https://coinmarketcap.com/  Prices@05/03/2020))

Prices of some dollar-based crypto currencies CoinMarketcap.com

 

For any questions or clarifications please contact us here!

SOURCES:

• Κολλιόπουλος, Α. (2019), Διπλωματική Εργασία: «Κρυπτογραφικά νομίσματα: τεχνικές αρχές και τρόπος λειτουργίας: η περίπτωση του Bitcoin», Τμήμα Οικονομικών Επιστημών, Πανεπιστήμιο Θεσσαλίας.
• Μανώλης Τζαγκαράκης, Βικτωρία Δασκάλου, Σχολή Οργάνωσης και Διοίκησης Επιχειρήσεων, Τμήμα Οικονομικών Επιστημών . «Θέματα Ψηφιακής Οικονομίας. Κρυπτονομίσματα-Bitcoin». Έκδοση: 1.0. Πάτρα 2015. Διαθέσιμο από τη δικτυακή διεύθυνση: https://eclass.upatras.gr/courses/ECON1315/
• Buntinx J. (2015), ‘Is Bitcoin a Digital Currency or a Virtual Currency?’, online:
  https://news.bitcoin.com/is-bitcoin-a-digital-currency-or-a/