The debate about cryptocurrencies and their true worth is a hot topic in various financial forums, groups, websites and pretty much everywhere else. Everyone seems to have an opinion on the matter, though the debate mostly centers around a single topic – are cryptocurrencies even money at all? If so – how is their worth decided?
The answer to the first question is simple – Yes, cryptocurrencies are money – they have value which climbs and falls, they are traded, they can be used to pay for various items and most importantly – they react to other markets, other currencies and events in various financial arenas.
The answer to the second question is far more complex than we have time and space to cover here – who even decides what things are worth?
Cryptocurrencies are digital assets that use cryptography to secure the information they hold. The biggest difference from other “traditional” currencies and banking systems is that they use decentralized control – no single location holds all the information about transactions.
Unlike regular banking systems, cryptocurrencies normally use Blockchain technology as their database. Each transaction must be verified by multiple separate ledgers instead of one central bank.
The thinking behind such a system is rather simple – if you wanted to rob a bank holding US dollars, for example, you would have to break into and get away from a single location, but to “rob” cryptocurrency you would need to break into countless computers within the network holding its information, ensuring that you control AT LEAST 51% of the data, so you can “fake” it to suit your needs.
In other words, in the digital age, it’s all about security.
At last count, there were over 4,000 kinds of cryptocurrencies with varying levels of success or infamy, from market kingpins like Bitcoin and Etherium, to the smallest, lesser known crypto coins.
But despite some difficulties along the way, cryptocurrencies, their uses and their worth have been on the rise for years now, and the trend does not seem to be ending any time soon.
Cedex and the Cedex coin are pleased to join this new world economy. We hope to be one of its leaders for years to come.