Hamid-Reza Khoyi and the cryptocurrency world
HAMID-REZA KHOYI CRYPTOCURRENCIES - For several years now the words cryptocurrencies and bitcoin have entered the common language. Even though these words are now well known, it is not the same for the concept. Most people still don’t know what they actually are. Hamid-Reza Khoyi, editor, helps us navigate this world.
What are cryptocurrencies?
Cryptocurrencies are a digital representation of value based on cryptography. In simple terms, they are virtual currencies managed by a shared and immutable data structure, called blockchain. The blockchain ensures the safety of cryptocurrencies, by keeping track of the transactions in an anonymous and precise way. In fact, if we can’t properly protect our cryptocurrencies’ data, it is possible for a capable tech guy to access them. So, our cryptocurrencies are safe, as long as we are able to protect our virtual wallet.
Earning through cryptocurrencies is possible, but we have to take a risk
The bitcoin, the most popular cryptocurrency
The bitcoin, that you hear so much about, is nothing but a cryptocurrency. It is clearly defined by his algorithm, it doesn’t have a monetary and physical consideration. In contrast to paper currency, bitcoin has got a finite number. That is to say, once you reach his maximum limit, it is not possible to provide new liquidity to the market. You can shop and invest by using bitcoins.
Being a cryptocurrency, it doesn’t make reference to a centralised management system, like banks. There are several ways to get hold of bitcoins. For instance, you can ask providers, or you can open a checking account in which your conventional coins are converted into bitcoins. This means that you can buy bitcoins by turning to the stock market, to banks, or by financial transactions. However, so far there are few banks offering this service. The hope is that they will increase in the future. In fact, even though cryptocurrencies aren’t a centralised means, it is very advantageous for investors to have the support of a bank.
Hamid-Reza Khoyi and his impressions of bitcoins
The risks associated with the purchase of bitcoins are much higher compared to other types of cryptocurrencies. This happens because we often believe that we are speaking to a real provider, who turns out to be a hustler. In addition, bitcoins don’t have a transposition into physical currency, but they have a floating value. They can be very valuable today and worthless tomorrow. However, they seem to have reached a certain stability and their value is expected to increase. Despite this, bitcoins remain a volatile and speculative investment vehicle. This explains why they are much more used for investment in the world of finance compared to the commercial sector, where bitcoins are not very common yet.
With regards to bitcoins, I expect a steady growth which will take to a higher acquisition of value and stability and become a refuge asset and a powerful investment.
According to Hamid-Reza Khoyi there are other interesting cryptocurrencies
The most interesting thing about the bitcoins is the technology behind it. This type of technology was picked up by other cryptocurrencies, which are in possession of a monetary consideration. This makes them more reliable, since there is no risk of a drastic reduction in value. These cryptocurrencies, compared to bitcoins, are more likely to become a real means of commercial exchange.
The cryptocurrency Etherium is very interesting, as it uses an interesting algorithm and an interesting supporting platform. To date there is also much waiting for Libra, the cryptocurrency that should be launched by Facebook. Despite being an interesting project, it has got a difficult implementation, because of the problematic acceptance by countries. Nowadays launching a cryptocurrency is way easier for a start-up than for a big company.
According to Hamid-Reza Khoyi, the real revolution is the blockchain, not the cryptocurrencies
The blockchain is a transparent system. The advantage of decentralised and synchronized datas makes it difficult to realize scams. In the future this technology will allow certification processes for many sectors. For instance, there is talk of replacement parts, medicines and much more, also leading to a cost reduction, in addition to scams reduction.
The blockchain will also allow the possibility to subscribe to notarial deeds, because it offers the possibility to affix the stamp of authenticity of the transaction, consequently verifiable by several actors. As a result, also the buying and selling of works of art will be more safe, thanks to guarantees of authenticity, origin and property.
All aspects of the economy will benefit from the blockchain. Smart contracts are another example, as they give guarantees to both buyers and sellers. In fact, the buyer will be sure that his money will be taken only after the confirmation of delivery by the courier. On the other side, the seller has the guarantee that the money will have already been stored, and he will receive it once the package has reached the addressee.
