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Monetary systems created by humanity had modified themselves drastically through time. A key point for the occurrence of those changes in contemporary history was the Bretton Woods Agreement, right after World War II, which contributed for the process of internationalization of global economy. Along with this, the technical, scientific and informational development promoted by the Third Industrial Revolution, was also determinant in globalization process that, among many things, boosted the economic interdependence between countries all around the world.
Amid this whirl of events, there was a driving force propelling human actions leading to discovery of new ways of surviving in a consuming market so competitive and uncertain. One of those refers itself to the velocity and convenience in financial trades without any bureaucratic intermediary, such as Central Banks. Thus emerged a new concept to trading processes: the cryptocurrencies.
“Cryptocurrency” is a term created by cypherpunk community in 2008 and it describes a mean of exchange secured by cryptography that works based in a peer-to-peer network. The cryptocurrencies are decentralized, online and regulated by a consensus mechanism, in other words, all users must agree with the conditions of the transactions. Besides working on the digital space and counting with trust and collaboration of the users to fully exist, cryptocurrencies diverge from tradicional monetary systems, because they do not depend on third parties or regulatory authorities for the trades to be verified and approved.
Cryptocurrencies can be obtained through a mining process. In this operation, hardwares calculate what the proof-of-work, the Bitcoin’s authentication mechanism, requires in order to validate and register the trades. Therefore the miner that registered the trade earns a benefit, in this case, he earns the tax levied in that transaction.
Because of the complexity of the process, it requires high computational power with high capacity of processing and performance to generate coins. Cryptocurrencies are becoming so popular that they have even created – among with a new monetary system – new jobs, such as cryptocurrencies’ miners. Many business engaged with innovation and technology, that already have realized the impact of cryptocurrencies and see them as the future, are developing products and solutions for this market. This proves how solid is the economic ecosystem of cryptocurrencies.
It’s worth to emphasize that besides financial implications, cryptocurrencies are also an indication of social and political changes in a global level. This innovative technology that breaks boundaries imposed by the traditional system is one of the solutions to curb the injurious effects of the monetary crisis happened in 2008, standing as a way of social resistance to the governmental impositions related to people’s finances, such as the obligatory use of fiat money.
Bitcoin, created in 2008 is the most known cryptocurrencie and the pioneer that has built the way for all of the others. Nowadays there are more than 2100 cryptocurrencies available, coming from many places and with various purposes and functions.
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