WHAT ARE THE ADVANTAGES OF USING CRYPTO-CURRENCIES:
Open code of all algorithms and transaction history. You can look at what is wallet currency, but information about the owner is nowhere recorded, known only to the wallet number, which guarantees full anonymity. Information about each transaction is stored in a software wallet each participant.
The basis of each cryptocurrency based on a certain algorithm of creation of a chain of transactions. This algorithm allows to calculate the maximal number of electronic money can be created on its basis, and over what period of time.
As a result, the cryptocurrency is not subject to inflation, because its total amount is limited.
To date, no charges and taxes for each transaction (the situation may change, after you have found all the coins),
You can pay that kind of money to any owner of the electronic wallet on the planet and at any time. Your transaction no one to monitor or cancel.
Maximum protection against burglary. Your cryptogenic cannot be copied and spent another purse, it's also impossible to double-spend the same coins. Each operation is performed in one direction only and can not be canceled.
Fast speed every transaction.
DISADVANTAGES OF THE CRYPTOCURRENCY:
On the exchange rate of the cryptocurrency is very strongly influenced by all kinds of news and laws. In some countries the media statements appear, about banning or allowing payments in certain currencies, which inevitably leads to a sharp rise or fall in the exchange rate.
Since these currency do not belong to the States, respectively, no law can guarantee the safety of your electronic money.
With the loss of access to the electronic wallet irretrievably lost all the money stored on it.
To maintain the operation of the entire system requires a very large computing power which is provided by computers of the system participants.
mining bitcoins this drawback has its key features for the existence of the entire system, as well as some advantages. To make a transaction, transfer money from account to account, it is necessary to solve complex mathematical problems inherent to the original algorithm are made in order to ensure safety. The answers simply are selected and checked against specified condition. In choosing answers computers are members of the system, combined into a single peer-to-peer network. For finding the correct answer the participant gets a certain amount of electronic money. This process is called hashing, it is necessary to maintain the process of cryptocurrencies transfer from one owner to another.
It turns out that the total amount of money in the system is replenished by mining, that is, the system is formed a certain amount of coins on account of happy miner, of the participant whose computer has solved the problem.
This is the meaning of to maintain the efficiency of the system, since the new tasks required for the existence of the system you will get a reward, and all the work will be to make computers, as in the cases of the Forex expert advisors.
THE MOST POPULAR IS THE BITCOIN
So programmed that it kolichestvom is limited to 21 million coins. Its real exchange rate compared to the dollar can be viewed on special websites.
At the moment, not all coins are created – the code is programmed so that the appearance of new coins being of a predetermined speed, To date, bitcoin is freely drawn in many real-world payment systems, was adopted by brokerage houses, displayed in cash.