Cryptocurrencies

Understanding

Victor Aguilar C.

PAINT EXPERT :)

What

We'll talk about ...

Why

Which

Advantages/Risks

Let's talk about cryptocurrencies first

Deductions 

• Currencies are not backed by resources anymore

• Currencies are basically trust

• We are doing  transactions  using currencies

• We are trading trust all time

• Our actual financial system has a lot of problems

Let's understand how a transaction works

Transaction

Ok, What is a LEDGER?

Is just a registry like an account book where the banks put all transactions are happening

Imagine that as a giant spreadsheet

A11: -100 MXN

A21: +100 MXN

• Transactions
• Credits
• Investments
• ...

The LEDGERS  are more common than we think

• Identifications
• Taxes
• Property Notes
• ....

• Students Reg.
• Grades
• Degrees Reg.
• ....

A11: -100 MXN

A21: +100 MXN

• Bank has no service
• Blocked Account
• Out of service hours
• Hacked Accounts
• Technical Issues
• Tampered accounts
• Etc, etc...

There are many ways that the banks' ledgers to stop being reliable

What would happen if there were no banks or intermediaries?

How the transactions would work?

Can you imagine a world without intemediaries?

So, crytocurrencies are:

A trustable, cheap, decentralized way to make transactions between us without intermediates

A cryptocurrency is in fact a big global network

Descentralized => NO banks or government

Why is called as crypto?

Trustable => Criptography, math, technology

Cryptography

• Each one has private/public keys
• Transactions are encrypted with those keys
• The cryptography is base on math and advanced algorithms that are too difficult to hack

International Transfer

COMPARISON

SWIFT

Cheap => Without Restrictions/Comissions

COST: aprox 3% per participant bank / country limited

COST:  has flat price in cents depending of cryptocurrency

Let's talk about what Cryptocurrencies there are

Bitcoin

• Was the first Cryptocurrency

• It starts in 2009

• Created by Satoshi Nakamoto (unknown)

There are around 5000 cryptos nowadays

Should  do I invest in cryptocurrencies?

If it's your first investment, I think it could be too much risky

There are some "meme" cryptocurrencies

I advise you get more info about it, so you can take and advantage of that

Final thoughts

Questions?

Myth: The cryptocurrency bubble is about to burst.

Fact: In the last decade, cryptocurrencies breached the $1.3-trillion mark, making them the world’s top-performing asset class.

Myths and Facts

Myth: There is only one blockchain.

Fact: There is one blockchain for each cryptocurrency (but not only).

Myth: Cryptocurrencies have no intrinsic value.

Fact: Cryptocurrencies do not need to be backed by a commodity to hold value.

Myth: Cryptocurrencies are only used for illicit and dubious activities.

Fact: Far more Dark Web transactions are undertaken with fiat currencies than cryptocurrencies.

Myth: Cryptocurrencies are unregulated. 

Fact: Cryptocurrency regulation is on the rise.