What are cryptocurrencies?

The cryptocurrencies are virtual coins. They can be exchanged and operated like any other traditional currency, but they are beyond the control of governments and financial institutions.

There is a large number of cryptocurrency available, all with their own characteristics and applications. Those that have greater market capitalization are - at least for now - a minority, which includes bitcoin, bitcoin cash, ether, litecoin, ripple and dash.

Currency or raw material?
Cryptocurrencies can be considered as an alternative to traditional currencies, but in reality they were conceived as a completely conventional payment solution. At this time, many stores accept cryptocurrency as a form of payment.

Although it is true that its validity as a method of payment is fundamental to its value, cryptocurrencies are usually more similar to commodities such as gold than to the forex market. As the raw materials:

-The value of a cryptocurrency is not linked exclusively to the behavior of a specific economy
-The changes in interest rates and the increase in monetary reserves only have an indirect effect on their value
-The value of cryptocurrencies depends on the commitment of users to maintain their price when converting them to traditional currencies.

This means, at least for now, that criptodivisas are treated mainly as a raw material: an investment whose return comes from speculation about the ups and downs in value.