COMPRENDRE LES CRYPTO-MONNAIES EN 8 MINUTES

Hello and welcome to Cryptoast, in this video I'm going to talk about crypto-currencies in general. If you haven't seen them, I would advise you to go watch our blockchain and Bitcoin videos to get the basics that will help you better understand this video. To understand what a crypto currency is you need to already understand what a basic currency is Even before currencies existed there was the exchange of services between individuals.

For example, let's take four people A, B, C and D who live in society. A is dentist, B is a cabinetmaker, C has some land rich in wood and D is a blacksmith. Things are simple when by example B needs wood and C wants from the chests, B can ask for wood to C and in exchange C gives it wood plus a surplus to make the chests but things are getting complicated when you need several services from several different people for one only product or when what you has to offer is not of interest to the person you are trading with.

For example if A wants a sword he will have need the wood of C and the work of B and D if they are all interested in the dentist's services in exchange for everything Fine, but if only one of them is not interested. That's going to be a problem. How do we get everyone to agree to participate in the exchange?

Currency allows people to convert their efforts into a store of value and can be traded back against goods or services. By example A wants to buy a chair from B but B is not interested in the services of dentist. A can give him a paper on which is written good for an exam.

This paper now has a value that is associated with him. B is aware that C is interested in an examination but she couldn't get any because she has nothing that interests A by against it has a lot of wood this that B. is interested in.

Besides B is much more interested in wood than possesses C only by the examination offered by A. So B agrees to exchange its good for a C test in exchange for the wood. To sum up A got the chair from B and in exchange B received a voucher for a test that he traded at C for some wood.

If A's work becomes very requested then this piece of paper can take on a lot of value. That's where the counterfeit comes in. let's imagine that B worked for ten hours to make what A wanted.

He then got a voucher in exchange of his work so a good a la same value as ten hours of work for B. If D also wants a test but has nothing to trade him for, he could. make a counterfeit copy of a coupon.

That's why during for a long time currencies were based on of real property that exists in quantity limited and cannot be reproduced. Probably the best example is gold. Gold is a rare thing.

If a no one owns them she could only get two. ways. They found him in the wild where they got it from someone who got it from him.

. . found him in the wild.

Gold can be divided so we can base it on his weight to obtain a quantity of gold that has more or less value. Now when B makes a chair for A at the chair will be exchanged for gold. When B will receive then he will in turn be able to exchange it for the other people who see gold as a valuable reserve.

But gold has also his problems, it's heavy and therefore complicated to pay a person to pay himself. finding away from us and the fact that gold is found in very large quantities limited makes the distribution of wealth complicated when a lot of people wish to use it as a means of payment. If we were to divide it up in such a way between each inhabitant, we are in a position to would find himself with a few grams at the better.

Simple daily payments should then be in micrograms which is not an option that's why a lot of countries have begun to centralize all the gold they have on a reserve, and provided in exchange a currency that is based on this gold reserve. Today very few currencies are based still on gold reserves. For example, the the dollar hasn't been based on gold since the 1971s.

If you have a $20 bill. . .

this ticket will be $20 for any someone who trusts the system. If you're getting paid $20 an hour for your work this ticket represents the equivalent of a hour of your work turned into a piece of paper that is very hard to duplicate. Cryptocurrencies are coins in digital form.

Remember that one of the biggest problems that can meet the currency is the counterfeiting problem. But when we talk about digital, we knows how easy it is to duplicate something. You can duplicate movies or music to infinity and this simplicity can make the creation of a digital currency complicated but thanks to the technology of the blockchain the crypto-currencies have managed to be very difficult to duplicate, it's kind of like gold underneath.

digital shape hence the name digital gold. All the more so that their reserves are as limited as Bitcoin and its 21 million units. .

. maximum. The only way to get Bitcoin is either undermine it or get it from someone else who undermined it.

The fact that it is decentralized prevents anyone to create more or to censor it. remember the example of the dentist. If he retires, then every outstanding coupons no longer have no value.

Every crypto currency has a purpose. specific Bitcoin, Ethereum, Monero, but all this will be detailed in of future videos. If you want to understand in detail how the blockchain works how are mined the crypto-money or how a transaction works you can go see both of us previous videos.

At the beginning of the years 90 a group of people created a mailing list in which you found email addresses belonging to several persons who shared a certain vision now known as the kypher punk movement. They used to meet and talk about subjects such as cryptography, information technology policy and philosophy. One of the main ideas is that the society would be better off without government or without a power centralized.

For them anonymity, the privacy were very important to us. important. The idea of a digital currency is not new, long before Bitcoin.

there have been several trials but have not been not been as successful and very little people know them. Both currencies the most notable are certainly the B-money of Wei Dai in 1998 and Nick Szabo's Bit Gold in the same year. I invite you to find out more about these two people and their work a lot of people in the crypto-currency business think that Satoshi Nakamoto was one of them.

Let's move a little forward in the time to October 31, 2008 Satoshi Nakamoto publishes the white paper the best known in the world of crypto-currencies. "Bitcoin a peer-to-peer electronic cash system. " In it he explains the operation of the blockchain and the Bitcoin.

January 3, 2009 Satoshi Nakamoto mines the first block also known as genesis bloc. It's now 2011 and there's news cryptomoney are appearing as a kind of that : Litecoin, Namecoin, Peercoin or Novacoin. These names may not mean anything to you.

but be aware that a very large number of the crypto-currencies currently in the top 100 of Coin Market Cap are forks of these coins here. The source code for these cryptomoney was taken over used for a wide range of projects recently arrived on the market. It wasn't until 2015 that the world-famous Ethereum which with brought him the smart contracts, the ERC-20 tokens and the ICOs.

The first ICO was Augur, a token that is based on the Ethereum blockchain but does not don't worry, the ethereum will get the right to his own video. The rise of Bitcoin has made it possible for everything this ecosystem to see the light of day. Now anyone can get the right and power to control his own money.

The government, the financial institutions, all thanks to to crypto currency now becomes useless to be financially free. Why do cryptomoney prices go up and down? The simple answer is the offer and the request that caused it.

Cryptocurrencies, like all other assets, are priced differently in function of the market. In a simplified way thousands of sale orders and are set at a price and a purchase price. given amount.

When many people want to buy a sound asset price will rise and vice versa when a lot of people want to sell it, so its price will drop. Why is there so much cryptomoney? Thanks to many tutorials on the internet create a token ERC-20 is within the reach of anyone.

More and more crypto currencies are created. Currently it there are more than 2000 listed on CoinMarketCap and there are thousands others that are not listed on the site. The first reason for the explosion in the number of cryptos comes from the easy to create them.

It is no longer necessary to create a blockchain from scratch you just have to make a token that's going to follow some rules and it will be integrated on a blockchain already. . .

existing. In addition, the creation of a new token costs nothing or a few cents for some blockchain in the worst case scenario. There's no no.

no more reporting to a central agency or administrative formalities everything can be done in a few minutes with a computer. How to know about what exchange I can trade a crypto change? If you don't want to consult all the exchanges one by one in order to find the cryptomony that you search you can go to Corner Market Cap.

If you are looking for your crypto currency and go to his page in the tab market you will find all the exchanges who accept this crypto-money. The better to take one of the exchanges that has the largest volume. If you need to buy or sell large quantities but that the volume is too low that's going to be a problem for you.

Thank you to have watched this video do not hesitate not to post your questions as comments. See you on the next this explanatory series which will talk about the Ethereum.