Recently there have been some developments in the field of digital currencies that are of great significance.
One - the Securities and Exchange Commission of the United States has approved trading in 11 hedge funds that track the price of Bitcoin in continuous trading.
This decision allows investors exposure to Bitcoin through a product supervised by the Authority.
At the same time, an official definition of what digital currency is has not yet been established - neither in American nor Israeli law.
Another development is the announcement in Israel that it will be possible to purchase from a certain supplier in the automotive sector with digital currencies.
This follows the global trend in which more and more businesses are starting to accept payments in cryptocurrencies.
So what is a digital currency?
A virtual currency that is produced and managed through a decentralized computer network, without the central control of a bank or monetary authority.
Digital currencies are based on blockchain technology and cryptography to ensure the security and reliability of transactions.
Main features of these coins:
independent
of a central bank or government body
Decentralized
- there is no central entity that controls the issuance and transfers
Transparency
- all transactions are recorded in a public blockchain
There are no geographic boundaries
or restrictions on possession or transfer
The most common digital currencies today are Bitcoin, Ethereum and Ripple.
Blockchain is based on a network of linked blocks that are secured using cryptography.
Each block contains information about the transactions carried out.
The information in the blockchain is distributed among all network users and is not stored on a single server.
This makes it harder to change or fake.
Before making investments, studying and understanding the field is extremely important.
The above should not be seen as a substitute for personal investment advice suitable for the client
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