By Moris Beracha – Have you imagined that the current structure of international markets could change? Let’s say that, instead of buying and selling through the costly traditional financial system, everyone could make their transactions more transparent, faster, less bureaucratic or even add value to their assets. I’m just going to tell you something: this is already a reality and they are called cryptocurrencies.
Moris Beracha Wuani
I’ll go a little further: think about how the savings of a lifetime in local currency of a Venezuelan have been disappearing because of the weakness of the bolivar against the dollar. I must say that this example is not mine but Ronnie Moas, founder of the consulting firm Standpoint Research, who explains it in a simple way, arguing that save the savings in any of the at least 800 types of cryptocurrencies existing and in use in the markets, It is a decision that would not be thought of, it would simply be carried out immediately. However, very few know this new financial digital revolution.
Moris Beracha Wuani
Like everything new, there is always a rejection at the beginning because of the fear that a bubble will occur or that it is simply a business scheme that leads only to the loss of capital. But I must say that, if you look at the example of what has been the development of bitcoin since its inception in 2009 to date, the durability of the proposal is measured by its presence and growth in chains such as Amazon.
Moris Beracha Wuani
You will ask yourself how complicated this is and I will tell you that it is simpler than it seems or what a traditional broker might say who fears changes in the status quo. There are, as I said, more than 800 types of cryptocurrencies for different purposes. Within the top 10 of the most capitalized are: Ripple (XRP), Factom (FCT), Monero (XMR), Bitcoin (BTC), Litecoin (LTC), Dash (Dash), Etherium (ETH) and Waves (Waves), to name a few.
Moris Beracha Wuani
People often believe that cryptocurrencies are just virtual money, but in reality it is a transaction system and money is just one of thousands of applications. This system is called Blocks Chain or Blockchain and in this space all transactions are blocked against intruders, you can not know neither the date, nor the time, nor the participants, nor the volumes traded.
Moris Beracha Wuani
Each operation is verified by the so-called miners, who are a kind of system nodes. If someone tries to corrupt the transaction, the nodes would see them and block them. It’s like having your own notary in every transaction. It is important to know that the block chain does not care if the cryptocurrency represents a certain amount in euros or dollars.
Moris Beracha Wuani
The users decide which instrument of value they represent, that is, it can be a certificate, shares, instruments, a policy or any property or good. This technology ends with the intermediaries, eradicates the financial bureaucracy and the collection of services for portfolio management. It is much more transparent, so it breaks with the traditional operations of the market.
Moris Beracha Wuani
Each one decides what to buy, sell or in which project to invest of this type of coins. In the short term we will continue to see quite a lot of volatility in the prices of cryptocurrencies. But I have no doubt that in the medium and long term many of these coins will grow considerably in value.
Moris Beracha Wuani
Read the original post here.