Cryptocurrencies are global currencies, much less susceptible to the economy or policies of a specific country. Everyone can access them and they can be instantly transferred to anyone anywhere in the world.
Cryptocurrencies are decentralized: there is no official market, which means that they can be operated 24 hours a day, seven days a week.
What are the Cryptocurrencies?
The cryptocurrencies are virtual coins. They can be exchanged and operated like any other traditional currency, but they are beyond the control of governments and financial institutions.
There is a large number of cryptocurrency available, all with their own characteristics and applications. Those with the highest market capitalization are – at least for now, a minority, which includes bitcoin, bitcoin cash, ether, litecoin, ripple and dash.
Cryptocurrencies can be considered as an alternative to traditional currencies, but in reality they were conceived as a completely conventional payment solution. At this time, many stores accept cryptocurrency as a form of payment..
¿What is Mining Cryptocurrencies?
Mining cryptocurrencies is the process through which cryptocurrency transactions are verified and new units are offered. The objective of the miners is to collect the latest transactions in blocks (that is, verified sets of transactions) and find a solution to a complex algorithm.
Doing this you get a reward: a fixed amount of cryptocurrency. This amount varies according to the cryptocurrency in which you work; The bitcoin reward, for example, is currently 12.5 bitcoins. The solution to this algorithm is a continuous process and depends on the results of previous algorithms to perform the following calculation.
In the same way, the difficulty of the algorithm can be (and is) adjusted frequently, in order to make the work of the miners constant – and even if the processing capacity is improving. This is similar to the rate at which raw materials such as gold enter the market (hence the term ‘mine’).