Much is being said about cryptocurrencies today. These digital currencies have generated conflicting opinions. For many it is a passing fad, while for others it is the future of the internet, technology and finance. In fact, in many countries they are being established as a form of payment, cryptocurrency services are being promoted in bastketball matches and there are public figures receiving their payments in this modality. Below, we offer you the 2022 cryptocurrency guide, in case you are a newbie in the area.

Cryptocurrency guide: Cryptos have been on the rise since its inception

Cryptocurrencies have been on the rise since their inception in 2009. Recall that the first of all was Bitcoin, developed by Satoshi Nakamoto. Its main objective was to create a decentralized form of payment, where you could send money anywhere in the world without paying commissions, without taxes and without waiting several days. Similarly, the blockchain guaranteed great security, since the encrypted technology allows everything to be recorded in a non-modifiable digital ledger.

If you are starting out in the world of cryptocurrencies, it is advisable to know the basics that will help you stay up to date. It is also important to know technology and finance, to avoid blindly believing in these investment mechanisms, which are characterized by their permanent volatility. Cryptocurrencies seek to have three basic features:

• Decentralization: which means that they do not depend on any regulatory or governmental entity that controls them.
• Security: because the transactions are within the blockchain and are recorded forever, being able to be tracked at any time.
• Speed: because you can send money globally without having to pay high commissions, or wait several days for the transaction to” become effective”, as it happens with traditional banks.

Cryptocurrency Guide 2022: some concepts

Blockchain / Blockchain

It is the technology that is spreading around the world and where almost all cryptocurrencies are being developed. The first was Bitcoin, but currently there are hundreds of them. The most used for the creation of video games and content platforms are those of Ethereum, Cardano and Solana. This is because they use the execution of smart contracts, or applications that are activated on demand. Blockchains are networks of computers that come together to store and update records of all transactions made.

Notably, blockchains use cryptography (hence the name cryptocurrency), as well as mathematical techniques that make the code used secure and almost impenetrable. Computers keep the same records immutably and this is what makes for greater security when making cryptocurrency payments. No assets can be duplicated within the blockchain plus records are open for all users to see. In fact, any desired transaction can be traced.

Value of cryptocurrencies

Cryptocurrencies are worth according to market movements and demand they have. Everything will depend on what investors are willing to pay. For example, it is estimated that in Bitcoin there are more than 2 trillion dollars. For some people it is strange, since everything will depend on what users are also willing to pay for. This case is being seen in NFTs, which are non-fungible tokens with a certain value based on an original object.

Some experts point out that everything is a” magic ” product of collective hysteria, which conjures money out of nothing. However, traditional money also consists of an agreement, a series of papers and digits that have a value due to majority consensus. Detractors also point out that Bitcoin will not be able to have more than 21 million units, making it inflationary, due to the world population being almost 8 million people.

It is necessary to think with a cool head when investing in cryptocurrencies. The vulnerability of these and the volatility of their prices means that they are not a stable means of investment. However, there are stablecoins, which have a value equal to that of a FIAT currency (dollar, euro, yen) but have the advantages offered by the blockchain.

Future of cryptocurrencies and mining

Despite the fact that many companies are changing their payment methods, cryptocurrencies are not yet fully popular in this regard. In fact, the list of places where you can pay with cryptocurrencies is even smaller. Those who accept them only receive Bitcoin, Ethereum and Litecoin. However, the other 15 thousand existing options are conspicuous by their absence. This causes many potential users to refrain from investing in cryptocurrencies.

Bitcoin usually does not maintain a stable price at any time, which makes it unreliable as a means of investment. It either climbs rapidly or has dramatic falls, depending on events worldwide. Similarly, some cryptocurrencies require small commission payments, which would mean that they are not as fast and efficient as other experts point out. These reasons mean that there are people who do not even try to approach the world of cryptocurrencies.