The laws of motion of cryptocurrency.
cryptocurrency is born in the context of the global economy is booming with the development of information technology! The development process of cryptocurrency will be how do you monitor the following analysis:
To the circulation of goods people have used a tool to help people can exchange goods that is currency. Bronze, silver, gold were the first means of payment for ancient people. China, Vietnam ... are the countries that use the dong, silver, which is a popular means of payment. Until the 18th century Europe used precious metals like silver and gold as a means of payment for goods.
But when the middle-class economy grows, the dong, gold, silver, etc., face certain difficulties. When buying large merchandise it is necessary to pay large amounts of money. The biggest difficulty is shipping to make payment prone to robbery. In that context, paper money was raised to solve those difficulties but not accepted by the people.
In the 11th century the Chinese Song Dynasty issued the paper money, also known as a check. It is not a complete replacement for coins in everyday life. It also circulates in a class of merchants and wealthy nobles by its very large denomination. To be a complete currency today, there is a very long distance. It is regrettable that Chinese paper money at that time did not have many opportunities to continue to grow due to political constraints.
In 1396, the Tran Dynasty of Vietnam issued the paper money in circulation. The chairman of the chapter was Mr. Ho Quy Ly who circulated the paper money across the country. But it was not accepted by the people, and with the fall of the Ho, money was no longer circulated.
Up to now, paper money has solved the difficulties that coins can not solve such as:
- Easy to carry as a means of exchanging goods and paying debts
- Convenience when performing the function of reserve wealth.
- By changing the numbers on the face of the currency to show the amount of value large or small
The world economy is developing in the era of information technology, the cryptocurrency has been developing rapidly in recent years.
Convenience in transaction: If with banks or online payment service (intermediary transaction) will usually have a limit on the transfer and receive money in the day as well as time but with bitcoin is absolutely not, You can send unlimited amount, anywhere in the world at any time for relatives, friends without anyone managing the money you send.
Bitcoin can not be faked: The next advantage of bitcoin is that it can not be faked, because bitcoin does not exist in the physical form as other currencies, and bitcoin testing does not cost anything in gold. is very high.
High security and very safe: All bitcoin transaction information is displayed on the internet but the identity of the trader does not appear so the information security is very high. Up until now, the bitcoin protocol has never had a security flaw for losing a user's bitcoin.
Extremely low transaction costs: As there is no middleman managing the bitcoin transaction, cost = 0, you only pay transaction processing costs on the systems but it is very low.
Environmental protection: Bitcoin currency does not have to be used for printing or copying chemicals to make it safe for the environment. Bitcoin-based computer systems consume much less power than current financial systems.
But hackers can also find and attack exchange bitcoin and steal.
We see the birth cryptocurrency as an essential element of history.