Without going into technical details, we can say that cryptocurrency is a digital currency or Internet money. Thus, logical question arises: how does cryptocurrency differ from ordinary non-cash money, for example, from USD or EURO? And here is the most interesting aspect: cryptocurrency differs from ordinary money in many ways. The first, and, in our opinion, the most important difference between cryptocurrencies and ordinary currencies, which are also called fiat currencies, is that the number of most cryptocurrencies is strictly limited. The central banks of most countries in the world can mint new money in almost unlimited quantities, and this causes inflation – monetary depreciation. It means that over time fewer and fewer goods and services can be purchased for the same amount of money. Thus, ordinary money cannot take on one of its five roles, in particular, accumulation and saving. If it is hardly noticeable in developed countries with a stable economy and a low inflation, then in countries where the national currency can lose up to 80% of its value per year, it is quite a serious problem.

Most cryptocurrencies have a limited quantity, and their popularity is constantly growing. The population on the planet is increasing, and with it the number of people using cryptocurrency. Some people accumulate it, thereby eliminating the cryptocurrency and creating even greater deficit; someone simply forgets the password to his wallet or loses the wallet together with PC. As a result, over time, the cryptocurrency becomes less in circulation, and the demand for it becomes greater. This, in turn, drives up the cryptocurrency value. Thus, for instance, the price of 1 bitcoin in August 2010 was $0.06, and, in May 2017, its price was already $1,962. Therefore, in 7 years, the price of one bitcoin grew 32,700 times or by 3,269,900%. In addition, the cryptocurrency market is very volatile. Cryptocurrencies may not only rise dramatically in price, but also fall. For example, the same bitcoin in November 2013 amounted to $1,150 followed by price depreciation for a year and beyond, and, in January 2015, its price was $170. Thus, within a year, bitcoin lost 85% of its value. Such extreme ups and downs in price make it possible to earn substantial profits by playing both on growth and decline using margin trading.

Contrary to electronic payments using ordinary money, payments using most cryptocurrencies are anonymous, or rather, pseudonymous. Although all transactions between all addresses are publicly available, there is no contact with a specific individual.

Another difference between cryptocurrencies and national currencies is that they are not tied to any state. Cryptocurrencies have no nationality. It is real international money. The same as gold or silver in ancient times. Money should be like that.

Cryptocurrencies are largely beyond the control of the states. New technologies are changing the world. When they appear, things change. We believe that blockchain technology underlying the cryptocurrencies is a new disruptive technology that is commensurate to the Internet in its scale. This technology will fundamentally change the rules of the game. It is already doing it.

The adoption of disruptive technologies always has a profound social, political and economic impact. When new technologies are introduced, someone will definitely win, and where there are winners, there are also losers. Our goal is to be among the winners. Join Korzhyk Capital, and together we will take new advantages to the fullest that this technology allows for.