Fundamental characteristics of a cryptocurrency!

Digital: unlike traditional money, cryptocurrencies do not exist physically. They are digital and protected by cryptography.

Decentralized: they are not issued by governments or banking institutions.

Collective: new units are produced collectively by miners, who make their processors available to perform and verify transactions, and are paid for this.

Security: it is up to the miners to ensure the integrity and balance of the records.

Therefore, it is almost impossible for cryptocurrencies to be cloned or counterfeited. In addition, some cryptocurrencies such as Bitcoin are not inflationary, that is, they do not undergo the same devaluation as traditional money, as there is a finite number of cryptocurrencies that cannot be exceeded.

In other words, when all 21 million Bitcoins are mined, which is estimated to occur in the year 2140, it will not be possible to create any more. Therefore, according to the law of supply and demand, the more sought after they are, the more valuable they become.