Cryptocurrencies gain space in Latin America

Colombia, Venezuela, Brazil and Argentina are among the countries that lead the transactions and negotiations are more common than many may thinkCryptocurrencies have found fertile land in Latin America and according to data from some international firms, the region's participation comes from on the rise.

According to the agency Digital Finance, in recent months about 30% of the transactions related to the investment in cryptocurrency have been made from this area of ​​the planet, which reveals the weight of the region in the subject.

Colombia, Venezuela, Brazil and Argentina are among the countries that lead the transactions and negotiations are more common than many may think.

The boom is such that there are local initiatives that aim towards the creation of this type of commercial exchange tools, as a bet to move towards more sophisticated stages of trade.

The analysts of Arca Economic Analysis indicate that this activity awakens a lot of interest among entrepreneurs under 35 years of age because entry barriers are low and it does not take too much capital to enter and explore the advantages of this market.

The weakness of Latin American currencies causes investors settled in the region to turn to options, which also protect it from inflation and legal restrictions.

The largest
To talk about the options you can list the three largest where highlights Bitcoin, Ethereum and Bitcoin Cash.

These cryptocoins are considered the largest by their market capitalization and by the volume of transactions carried out globally.

Bitcoin is currently considered the largest, with a return of 165% in 2017 that has "given gas" to the so-called cryptocurrency fever.

It was the first to be launched in 2009 and its stock market capitalization as of September 1 was at 77,000 million dollars and about three million individual holders of bitcoins.

They are produced in technological units called "farms", which require little operational maintenance. However, one of the key points are the low temperatures for the operation of the machines and in this the price of electricity affects as an element within the business model. That is why Venezuela is an attractive space to invest in.

Ethereum is the second in size and was launched in 2015. It has been developed by a Bitcoin programmer who, somewhat "disgusted" with the pioneering currency, decided to create this new cryptocurrency.

As of September 1 of this year, its market capitalization was more than 36,000 million dollars, which places it under half of what Bitcoin has.

The individual owners of Ethereum are approximately 750,000 individual owners according to the data managed by www.dailyforex.com.

This cryptocurrency is leveraged in a blockchain technology that has been created to generate "intelligent contracts", that is, computer protocols designed to facilitate, verify or enforce the negotiation or fulfillment of a contract.

Ethereum is a tool to agree contracts and commercial transactions in the network, this difference from Bitcoin that is intended as a value reserve instrument.

Third?
There is a third cryptocurrency arising from the limitations of Bitcoin and looking towards the benefits of the Ethereum and is the so-called Bitcoin Cash.

This was created in August of this year due to differences between those who prioritized Bitcoin as an investment on a transactional tool.

Some "farmers" proposed to eliminate the limits and thus increase the speed in the transactions and this generated a division of Bitcoin into a new cryptocurrency with a higher transaction speed.

As of September 1, 2017, its market capitalization was over 9,800 million dollars, although some recent market movements boosted the price of Bitcoin Cash.

Watch out
It is important to review what the experts of the Arca Economic Analysis Group say when they point out that the independence of cryptocurrencies is their strength and at the same time their weakness.

"As they are not connected to conventional transactional systems, crypto values ​​can not be devalued, nor subject to taxes and withholdings, but this anonymous transactional world is also an open field for various illegal operations," they warn.

Finally, the market will have to coexist with this new and innovative tool of the economy and economic agents must prepare for it.