Blockchain technology allows consensus on a network of anonymous participants without a central trust body (such as a central bank).
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| image by google |
Blockchain allows cryptocurrencies to be in control of no one – there is no central bank, no need to pay banks, the system works honestly and reliably.
Cryptocurrencies are controlled by the market, which is controlled by supply and demand by the big players.
They have a lot of financial resources and can influence the price of cryptocurrencies, just as they do with the gold and oil markets in traditional economies.
blockchain technology
Blockchain is a technology that is globally changing the financial world the way the Internet changed the world of communication decades ago.
There is currently no large and serious tech or financial corporation that does not develop or implement blockchain projects and technologies. This is not about cryptocurrencies, but about blockchain technologies: please make a difference.
is blockchain just for cryptocurrencies?
Blockchain is not just for cryptocurrencies! It is a shared ledger that historically preserves all authorized transactions and once approved, they remain permanently unchanged.
Blockchain networks cannot be centrally managed, they are ideally decentralized, without owners and outside interference is technically impossible. Once something is recorded on the blockchain network, it remains in history forever.
This allows the blockchain network to store historical facts, digital assets, financial assets, contracts and all kinds of documents while ensuring immutability. Smart contracts allow for the elimination of middlemen in many industries, which would replace them permanently.
blockchain cryptocurrencies
There are many different cryptocurrencies and cryptocurrencies managed by blockchain technology. Bitcoin is the most recognized cryptocurrency, but it is also one of the most imperfect.
Currently, bitcoin can only be "dug" on specialized ASIC hardware, which excludes smaller players (such as ordinary home users) from the ecosystem. This is a threat to the bitcoin network and its integrity in the long run. 
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problem with traditional financial systems
In traditional financial systems, behind a currency (such as the US dollar) is the economy of a country or community of countries. If one touches the dollar, for example, the so-called "democracy" backed by tanks and planes, and confidence in the dollar is rapidly returning.
Due to the strong link between currency, economics and geopolitics, the prices of major traditional currencies have remained stable over time.
And they have fluctuating prices, but they are in small percentages, not a 10x increase in a year or 20x the price per day. Cryptocurrencies lack this kind of stability, which is why they are highly vulnerable to financial manipulation, especially bitcoin.
By nature, the value of cryptocurrencies is determined by the market expectation of their future value. If many people believe that, for example, there will be more demand for the Monero currency in the future, the market demand increases and the price rises accordingly. If many people think that Monero will not be looked for in the future, they start selling and the price drops. This is financial speculation.
There is no real economy behind most cryptocurrencies to ensure their value, so the lack of a permanent supply and demand requirement in the market makes them unstable and their prices can change dramatically.
In general, the risk of investing in cryptocurrencies and crypto-assets is huge, but the returns from smart investing are also high.
There are other cryptocurrencies, such as Ethereum, in which I personally believe a lot more than Bitcoin. The Ethereum network is a platform for the implementation of smart contracts, governing business relationships in a digital environment without any intermediaries.
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| image by google |
For example, through a smart contract, you can take out insurance and receive compensation if your flight is delayed. Whether the flight is delayed is public digital information and the smart contract fulfills the terms of insurance without human intervention.
Thus, the insurer cannot survive and pays unconditionally in case of flight delays and floods. Here is an example of a new business model in the insurance sector that has been implemented without human intervention.
In the coming years, I expect the public to use smart contracts for all kinds of services: hotel rentals, car rentals, insurance, goods and property purchases, speculative financial transactions, purchase payments, healthcare, transportation, Finance, Business and more. more industry.
