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Distinguish cryptocurrency - Which Cloud Mining is Best?

Distinguish cryptocurrency - Which Cloud Mining is Best?

​What cryptocurrency is suitable for investment? Which cloud mining is best? To answer this question, we must first figure out what cryptocurrency is. When it comes to cryptocurrency, some people think that it is cryptocurrency such as Bitcoin and Litecoin, and some people think that it is a digital legal currency issued by China. Why are there so many differences, and what exactly does cryptocurrency refer to? You should distinguish cryptocurrency firstly.

Classification of cryptocurrencies

Which cloud mining is best? When people talk about "digital currency", generally they refer to the four categories below.

1\. Decentralized "cryptocurrency" built into the network platform, such as Bitcoin, Litecoin, Filecoin, and son on.

2\. Equivalently linked to a single legal currency, generated by using the linked currency as a reserve exchange, and mainly used in the "digital stable currency" of the network system.

3\. It is structurally linked to a basket of legal currencies, and the linked currency needs to be exchanged as a reserve, which is mainly used in the super-sovereign "digital stable currency" of a specific network system, such as the Libra coin originally envisaged.

Potential opportunities for cryptocurrency

Cryptocurrency is mainly represented by "Bitcoin", and thousands of types such as Ethereum and Litecoin have been derived, including mainstream coins, altcoins, air coins, MLM coins, and so on.

Which Cloud Mining is Best? Take Bitcoin as an example. Bitcoin is an encrypted currency based on cryptography and a decentralized transmission mode relying on blockchain technology. According to Satoshi Nakamoto's design, Bitcoin has a total upper limit of 21 million, halving output every four years, and has the characteristics of decentralization, openness and transparency, traceability, and difficulty in tampering. The production process is called "mining". Anyone in the Bitcoin network can fight for the right to bookkeeping. Whoever solves a mathematical problem related to bookkeeping will book it first, and get a certain amount of Bitcoin as a reward. Miners can mine for Bitcoin through home computers and cloud mining.

Although Bitcoin's payment and transaction functions have always been controversial, it has still entered the public eye as an investment product. As the cryptocurrency with the highest market value, the price of Bitcoin has hit a new high of $66,000 since October this year.

Digital Stablecoin

Due to the volatility of the crypto market, the market needs some currencies with stable prices anchored by fixed assets, so different issuance methods such as legal currency mortgage, encrypted asset mortgage, and unsecured (according to algorithms, etc.) are used to achieve price relative various stable coins. Among them, the representative of the stable currency collateralized by legal tender is USDT (TEdacoin), which is also the world's first stable currency. It was issued by the US Tether company in 2014 and is secured by the US dollar, claiming to be linked to the US dollar 1:1.

In addition to USDT, there are TUSD, GUSD, BitUSD, etc. stable currencies anchored to the U.S. dollar. In other words, stable currency is not only an electronic currency, it is also a programmable cryptocurrency, which is a currency category only after the birth of blockchain technology.

"Super-sovereign" cryptocurrency

According to the amount of collateral, the above-mentioned stablecoins with legal tender as collateral are all digital stablecoins anchored to a single currency, and there is also a crypto stablecoin that anchors a package of legal tenders, which is also known as a super-sovereign country. Which cloud mining is best? Currency, such as Libra, is now renamed, Diem.

For weaker countries with economic difficulties, the risk is particularly high. Which cloud mining is best? Due to a lack of trust, super-sovereign cryptocurrencies can replace local currencies. Although super-sovereign currencies such as Libra may start by focusing on payments, they will eventually replace commercial banks as they gradually expand to savings, financing, investment, insurance, and asset transactions.