It is identified as virtual-intangible money, which has an exchange rate pattern from which its value is determined, usually against the dollar. The etymology of the word encrypt, is derived from the Greek enkrýptein, associated with hiding one thing inside another. This message, or hidden, is deciphered with a key, illustrating the idea around cryptography, to raise the capacity of an information that is transmitted in a computerized way with a hermetic character, where no one but a person with the corresponding key is authorized to read or observe it.
This is how cryptocurrencies act, in chains of nodes that are synchronized in the format of cryptographies by means of blocks of information, whose operation is unrepeatable and unbreakable, reasons why this chain is known as Merkle Tree: a tree that has roots, but that has a unique origin, so that the transaction or creation of information that is added to these branches is not destabilized, and allows to determine perfectly where it originated.
Creating the information and generating new nodes in this cryptographic format is known as mining, which is, basically, processing the information for various hardware. This technology was developed by the figure of Satoshi Nakamoto, whose real identity was never recognized, for the creation of the Bitcoin currency in 2008, the first currency under this format, in which software and accounting technologies wield the Block Chain, allowing the money to be under a virtual cloud of information fully protected. Types of cryptocurrencies
The splendor of cryptography in its highest financial development is given with the emergence of Bitcoin, currency and form of payment that stands out for being decentralized from banks in their transactions and allows virtual purchases easily. This cryptographic functionality uses a digital seal similar to the one used in DigiCash, only in this currency design the encrypted message is secure and fraud-free.
Since the creation of Bitcoin, the system has been used to create as many alternatives of encrypted currencies. There are at least 100, however, the most representative are the following:
Bitcoin. It is a digital token that can be divided infinitely, it is handled with a key, that is, each person with bitcoins has a key in their account, and with an email for each origin, similar to an application, and with it you can make purchases, investments and other types of payments.
Ethereum.- The chain system is decentralized, its programming allows to create chains in many programmers with only one key, it is great to make instant payments, officially presented in 2014 by Vitalilk Buterin, observing that in 2016 the Ethereum Classic version would be released, maintaining the essence of the proposal, and with its own valuation.
Theter. In the same way, it has a value backing with the dollar, which brings confidence. At the same time, its value attached to the dollar gives it some volatility, since if the value of this currency changes, that of the theter is affected. Designed by JR Willet in 2012.
Peercoin. It uses little power in the hardware network that controls transactions and the mining system, being its main feature. It was created in 2012 by Scott Nadal and Sonny King.
Dogecoin. This currency only has value for a period of time, during which a transaction must be made, it cannot be hoarded because a large chain is not generated, it is ideal for a fast transaction. Its creation was in 2013, by Billy Marcus.
Ripple. This coin is not generated from a mining system, instead, it uses a technology based on a computing power that keeps the network agile and secure, the characteristic of this is only to move money between accounts, this currency is ideal for transactions and money transfers in real time, having been devised by Chris Larssen in 2012.
Litecoin. The advantage of this currency is that it uses encryptions that can be decoded on any CPU, the block system is faster and more efficient. It was designed as a complement to Bitcoin by Charlie Lee in 2011.The future of cryptocurrencies ruled by speculation
Mexico is the main country in Latin America to use bitcoins for transactions, by 2022 it aims to respond to 10% of all international virtual monetary operations, an objective mentioned by the director of Bisto in Mexico, Pablo González, although in other countries not only this currency but many others are already handled.
They are used to buy virtually, also as a short-term investment, not being based on recurring money is that they rarely lose value with respect to other currencies, there is no monetary policy to resort to if there is inflation, so there is no economic instability because it is not a reserve of nations.
However, there is speculation and risk that exists in all types of investment, since at some point there may be problems of solidity. Cryptocurrencies are very volatile, on one occasion Bitcoin has had a stumble with respect to other currencies; Ripple has had an increase in its acceptance, although it has ceased to be used, but due to its excellent mobility, every day technology has generated better software that provides more foundations and support to cryptographic systems, causing the virtual environment to be more controlled, under a guiding hand with sentence in the circulating entries of this money. Ideally, when investing, one should think about making payments quickly, and not generate wealth in terms of savings, being an essential quality of the cryptocurrency ecosystem.
