Before you learn how to buy a cryptocurrency and get certain advantages as a result, you need to understand the principle of functioning of cryptocurrency systems and their difference from other (fiat) currencies.
Cryptocurrency Causes
The first monetary btc to inr systems arose in connection with the development of trade. They were made of rare metals, decorated in a way that is recognizable to users – size, shape, weight, relief, etc. To a greater extent, banknotes were controlled by states through appropriate posts and institutions – treasurers, mints, state banks. These structures were responsible for issuing (issuing new monetary units), replacing damaged copies, the quality of coins in circulation and the general monetary policy. In some periods of history, private organizations issued their monetary units. With the advent of the first monetary systems, counterfeit money also appeared, which differed from the originals with an admixture of cheap metals, reduced sizes, and other signs. Such changes reduced manufacturing costs. In difficult economic situations, counterfeit money was massively issued by the issuers themselves – the state or a private company. But in the days of metal money, the cost of the material was approaching or equal to the face value, so significant inflation was impossible.
Everything has changed with the release of the first born (paper money). Initially, the inscription on each bill guaranteed that the issuer had precious metals (primarily gold) or other values confirming the value of the banknote, although this did not always correspond to the truth. Later, most countries refused to tightly link the exchange rate to the value of gold. The cost of paper and manufacturing was insignificant compared to the face value, so there was a temptation to make money on the “start of the machine”, starting the inflationary process. During wars, serious investments in the issuance of counterfeit money by a hostile state greatly damaged its economic condition. Nevertheless, the issuers themselves did the most harm to the economy, is essentially the most successful counterfeiters, since they were legal.
