Cryptocurrency secrets – explained simply

Instead of francs, euros and dollars, they are called Bitcoin, Ethereum, Dogecoin or Ripple. These are the names of four cryptocurrencies – there are already more than 10,000 today. It was launched as a digital payment method. The word Bitcoin is often used in place of the general term cryptocurrency. These are the oldest, largest and most popular cryptocurrencies. The term cryptography comes from the word cryptography, cryptography. Encryption ensures the security of digital data in the network – that is, digital money. Thanks to encryption, this can be transmitted transparently and anonymously over the Internet in a very short time. Even across national borders, which usually takes several days for banks.

Francs and rapines exist as notes and coins that we store in our wallets and can be used as payment in stores. On the other hand, Bitcoin is a digital currency. But this is not the only difference: the franc or the dollar is issued by a national bank. The Swiss National Bank, for example, can influence the exchange rate and thus the value of the Swiss franc. Among other things, it has the ability to slightly control inflation. It can’t do that with cryptocurrency. The holders of Bitcoin, Ethereum or other cryptocurrencies have in effect become a financial institution themselves. This gives you control over the currency, but you are also responsible for the control and security.

Technical experts consider the cryptocurrency technical system to be anti-counterfeiting. All data and every transaction is stored in encrypted form on thousands of servers at the same time. This community system, called the blockchain, protects against fraud and manipulation. Among other things, it ensures that a person cannot spend more bitcoins than he owns.

However, the system also has risks: a person who buys or invests in cryptocurrency bears the risk of sometimes huge fluctuations in the currency. At the beginning of February 2011, 1 bitcoin was equal to 1 dollar. By April 2021, the value of 1 Bitcoin had risen to a staggering $63,000. It fell below $30,000 in July, but rose to nearly $68,000 on November 8th.

Initially, the digital currency still had a very bad reputation in society, as it was often misused for dubious purposes. Because the anonymous system is difficult to understand for law enforcement authorities. Meanwhile, the FBI managed to record the first successful searches in the United States. Today, however, the percentage of transactions for illegal purposes is already very small, and cryptocurrencies are increasingly enjoying the better.

number. Since Bitcoin can be bought simply at kiosks or crypto machines from Värdex Suisse AG and the equivalent of 50 francs (see below), this is certainly no longer the case. However, you must be able to live with strong fluctuations in exchange rates.

Buying Bitcoin is now very easy in Switzerland: you can get it at Manor, MediaMarkt, kkiosk and many other stores, but also at Värdex . encoders. You pay there with cash or credit card and receive a card with instructions on how to enter Internet Comes to his bitcoin.

No, this is not possible yet. Major distributors also do not allow cryptocurrency as a means of payment via their online stores, as can be seen on their websites. It’s different, for example, at Migros’ subsidiary Digitec and Galaxus: there customers can pay their bills with Bitcoin. These are two stores with tens of thousands in Switzerland where you can pay with Bitcoin.

Cryptocurrencies are very well protected in the digital world – but for some people the protection is very good. Anyone who forgets or loses their access data no longer has a chance to access their digital money. There is a great example of that. Years ago, German programmer Stefan Thomas received 7,002 bitcoins for his work in Silicon Valley. Today it may be worth more than 350 million Swiss francs. But he lost and forgot the password to access the enormous wealth. He has a total of ten attempts to enter the password, and if they are all wrong, the money will be gone forever. He has tried to open the digital safe eight times so far. always unsuccessful. So he still has two chances to make a third of a billion. Therefore, the cryptonow Bitcoin voucher card should also be kept safe, because the password is printed right there and can be scratched like a ticket.