What is FirstCoin – and what makes a currency “crypto”?

FirstCoin is one of a new type of digital currencies, so-called cryptocurrencies.
If you need some help with this expression: the term cryptocurrency originates from the fact that these digital currencies use encryption, cryptographic methods to make transactions more secure.
We will go over a quick history of cryptocurrencies, including the history of Bitcoin, before turning to how FirstCoin intends to conquer the world of digital currencies.
The success story of Bitcoin: where does its appeal come from?
The first cryptocurrency was the now well-known Bitcoin, launched in 2008 when a certain Satoshi Nakamoto published a study detailing how a peer-to-peer network could be used to create an encrypted currency and perform transactions. Early 2009 they published the first open-source Bitcoin client and immediately established the first such network. In the 8 years since, cryptocurrency has only had to face a single security vulnerability, and has become a worldwide online currency.
It is worth noting how Bitcoin’s exchange rate transformed.

Bitcoin’s exchange rate has increased by 110 thousand fold in 4 years!
In 2010 a single Bitcoin was worth only 1 cent, or approximately 3 Forints. In 2011 people were paying 1 dollar for it. In 2012 it was worth 13 dollars, and the upsweeping exchange rate reached its 1163 dollar peak in December of 2013.

Bitcoin mining
Bitcoins are created through so-called mining. Until today they have mined 16 million of the possible 21 million, so there are still 5 million left. This is a hardware and software demanding process: in exchange for mining, miners are paid with Bitcoins.
During the mining process, miners solve complex mathematical problems with available high-performance hardware and special software – these cost several thousand dollars. A mining computer worth 2300 dollars can mine approximately 0.3 Bitcoins per month.

Eco-sharing
FirstCoin is also special because income is generated by ATMs and participating businesses – currently no other cryptocurrency offers anything similar. Income is also provided by sources related to the sharing economy. We are now talking about a sharing based economy, which ensures access to goods, instead of classic ownership.
Sharing economy means greater efficiency and sustainability, such innovative community solutions that can quickly transform industries even at a global scale – as seen with AirBnB and Uber.
ATM division
The first ATM capable of operating with FirstCoin is installed in the first half of 2017 – making it the third such cryptocurrency in the world.
Those who are just now getting familiar with the world of cryptocurrencies may find it strange that they can withdraw digital currency from a traditional ATM, but it really is not all that new. Such that there are several similar networks operating in the world already: for example, in Spain money can be withdrawn in exchange for Bitcoins in 11 000 ATMs; in Poland, as well, several thousand ATMs have joined the network.
Those who are just now getting familiar with the world of cryptocurrencies may find it strange that they can withdraw digital currency from a traditional ATM, but it really is not all that new. Such that there are several similar networks operating in the world already: for example, in Spain money can be withdrawn in exchange for Bitcoins in 11 000 ATMs; in Poland, as well, several thousand ATMs have joined the network.
Education division
An education program is also part of the FirstCoin project, providing participants with countless valuable knowledge. Its foundation is “lifelong learning”: not just about FirstCoin, but about the economy in general, including cryptocurrencies. Let us look at the basics from the FirstCoin aspect.
Firstcoin and the exchange
The biggest problem with coin businesses is that new clients usually buy coins from the specific business at a value that is not determined by the market. When coin commerce begins, coins are freed up, and most people try to sell them on the exchange market – this obviously leads to a drop in exchange rate, which means investors lose money.