Cryptocurrencies are generally digital currencies which are traded in OTC market, that is to say, two sides exchange these currencies one to the other Over the Counter. The value of cryptocurrencies depends only on the force of either the balancing demand or supply in OTC market. There is no monitoring or controlling authority or centralized commission to oversight the trading of the investors.
Although no centralized authority monitor the trading of crypto, there’s a community of miners that implement and perform the calculations of a safe and balanced register devoted to cryptocurrencies; that’s all done in order to maintain the confidence of investors in the market. Most currencies do like the precious metals market, that is, they give their chosen currency greater value by colloquially putting a cap on it, which means asserting a means to gradually reducing the production of.
Bitcoin - A Peer to Peer Electronic Cash System
Nowadays, the most popular and executive cryptocurrency is known as Bitcoin, which was introduced in 2009. This new electronic cash system was first adapted by many programmers that were impressed by the advantages of a decentralized free-floating currency. Due to its popularity among the traders from all over the world, Bitcoin was the first crypto to see the light.
The newly implemented currency began to be known and desirable more and more among the investors, but its high glory exploded when the central banking authorities announced that they would not suppress on the newly formed digital currency economy. This explodes the value of bitcoins, and backed up the multiplication of many online exchanges and wallet services, which therefore made it easier for people to buy, hold and spend Bitcoins.
Despite the big issues facing the trading of bitcoin, such as the continuous attempts of hacking in order to grab some more of it, the famous crypto prevailed them all. The traders can make transactions directly without intermediaries, while their transactions are registered on a public ledger known as blockchain. A network of computers owned by bitcoin miners perform all bitcoin operations.