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Cryptocurrency: A means of exchange
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Автор:  doaausef3li [ 22 окт 2024, 19:06 ]
Заголовок сообщения:  Cryptocurrency: A means of exchange

Before we address one of the characteristics of crypto, we must first know what crypto is. It is a digital asset used by merchants to exchange their goods, so it is similar to money but in a digital way. Cryptocurrency has 3 basic characteristics to be considered a digital means of monetary currency, and these characteristics are: -
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Means of exchange: Cryptocurrency is used to facilitate exchange of various types, so you can use it to pay for services or goods.
Unit of Account: Using cryptocurrency, you can measure the value of various services and goods, making it easy to measure the value of services against other services by intuition.

Preservation of value: Over time, the value of goods and things decreases, so currencies must be able to maintain their market value for a long time so that their holder can use them to exchange goods. Cryptocurrency is considered a very large store of value due to the limited nature of its currencies.

When we talk about what crypto is, we will certainly talk about Bitcoin, which is one of the first cryptocurrencies to be created. It is a decentralized encrypted currency, used as a digital alternative to money and transferred from one person to another. It is not controlled by banks, governments, or brokers. After the Crypto platform was created to trade cryptocurrencies, it now has a large number of more than 2,100 digital currencies used in trading on global trading platforms. There are thousands of other currencies, but they are not listed on the platform and have not received much promotion for their spread.

As Bitcoin is the first decentralized cryptocurrency and the first application of blockchain technology, we can consider both terms to be the same, so cryptocurrencies are what value is measured by and are used to exchange many services on the main network.

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