Solana vs Cardano: Which is the better blockchain?

Solana vs Cardano: Which is the better blockchain?

Solana vs Cardano: Which is the better blockchain?

Cardano and Solana are similar projects. They both support smart contracts and provide their clients access to many features in decentralized finance ecosystems.

Cardano vs Solana are direct competitors to the well-known Ethereum blockchain due to the solution to the scalability problem. These two platforms have evolved over the years in parallel in the cryptocurrency market. This fixed them with the stigma of eternal confrontation.

If we compare the two platforms for investors to determine the best of them, we can say that Cardano is unique due to the presence of the Proof of Stake verification function. On the other hand, Solana is popular due to its transaction speed, which is a big plus for many crypto communities interested in fast and high-quality exchanges. However, even Ethereum cannot be compared with Solana network in terms of transaction speed.

An objective comparison of two popular blockchain companies, SOL and ADA, can give investors an idea of ​​what to look for when investing in one of the firms.

Cardano (ADA)

The Cardano project is among the best blockchain projects that successfully implemented the well-known Proof-of-Stake system. This blockchain network has its bitcoin – ADA.

If we talk about the history of the new project, then it was founded in 2017 by two co-founders of the Ethereum blockchain – Jerry Wood and Charles Hoskinson. They left due to disagreements over how to promote the project and created their own unique product and the Cardano team. Cardano blockchain is a worthy competitor to Solana due to its uniqueness among other coins and cryptocurrencies. Furthermore, this has a secure architecture and allows the use of so-called potential interoperability when deploying smart contracts and transaction processing. By the way, crypto audit companies are very important for blockchain projects.

The project also has its own consensus mechanism called Ouroboros Proof of Stake. With it, the network delegates verification authority to ADA coin holders, who are rewarded for delegating their coins.

Cardano’s ADA coin also has a limited supply of around 45 billion. At the same time, at the moment, there are more than 30 billion of them.

Analyzing Cardano Network

At the time of writing, it has been five years since the Cardano blockchain first appeared. On the way to creating an ideal blockchain network, the project has gone through many stages of development and has only continued to gain popularity ever since. At the launch’s start, the ADA coin price ranged from 3 cents to $1.2, which gave a considerable ROI to early investors. Further, in a short period, the coin rose to $2 and will only continue to grow.

Cardano’s many unique features have made the network comparable to Solana because the first saw the high transaction fees and limitations of the Ethereum network and thus sought to ensure scalability, environmental friendliness, and short transaction processing times.

Using a mathematically guided model, the company was able to solve many of the problems of its main competitor in the face of the Ethereum blockchain. One of the best decisions of the company was the implementation of the unique Ouroboros consensus mechanism Proof of Stake, which reduced the energy required to operate the network by 99%! While the Ethereum network was processing no more than 15 transactions per second, Cardano had a processing speed of 250 transactions per second, which is a considerable number. Low transaction fees are also ensured through the above mechanism. This is a good solution for the crypto market.

Solana (SOL)

Solana is an open-source blockchain network for deploying applications and executing smart contracts. The company presents SOL tokens as its own cryptocurrency token. The network was founded relatively recently – in 2020 by a group of programmers led by Anatoly Yakovenko.

For all the time, about half a billion tokens were issued into circulation, but only 260 million entered the market. Solana was the first in history to set up the blockchain in such a way as to create the first proof of history among crypto companies.

Solana entered the crypto market with a plan to solve many of the problems of blockchains like Bitcoin and Ethereum. The critical issues of these giants include scalability, low transaction speed, and high transaction fees.

The ambitious Solana development team was able to solve these problems by implementing the aforementioned Proof of History. This allowed the Solana blockchain to process more than 50 thousand transactions per second with a lower fee than Ethereum and Cardano. In addition, proof of History and Proof of Stake mechanisms have reduced the time required to validate transactions.

Many institutions praised the benefits of Solana in terms of high transaction speed and low cost of paying transaction fees. In January 2022, Bank of America reported that Solana could become a visa-level digital currency giant.

Why Choose Solana Over Cardano?

Cardano and Solana have had high profitability rates since their official release and have been able to perform well in the best crypto market.

Solana and Cardano are often called killers of Ethereum and bitcoin, as many of the problems that such giants have been taken into account and corrected by new projects. However, like everything, they have their drawbacks.

Solana has been down six times since the network’s launch, leaving users in a difficult situation. In addition, many analysts, after another outage incident, began to suggest that the Solana team prioritized scalability over security.

Also, the Solana network is entirely dependent on the Solana Foundation to verify transactions on its blockchain. Although anyone can become a validator on the Solana network, it is still too expensive due to the transaction throughput. All this can lead to the pumping or dumping of SOL token prices and a 51% attack.

At the same time, the reverse situation is observed in the Cardano network, which reported 100% decentralized block production in the network. Despite this, the advantages of Solana over Cardano are apparent, which determines the choice of the majority of users in favor of the first option.

DeFi Ecosystems

Ethereum, the world’s most famous blockchain, has opened the gateway to next-generation financial solutions. This means that DeFi will grow very rapidly over the next few years. However, Ethereum’s inability to scale and high fees hinder the further development of DeFi. For this reason, blockchains like Cardano and Solana can take charge and continue to accelerate the mass adoption of DeFi. This will provide higher throughput and cheaper transactions.

Solana vs Cardano – which is better?

To sum up, Solana as a competitor to Ethereum, occupies a higher place in the rating list since it was this project that provided support for smart contracts long before Cardano did. But at the same time, Cardano developers will be able to deploy many DeFi dApps.

Solana is slightly ahead in the development of Cardano, however, Cardano has a large market capitalization and financial support from partners.

Where Can You Buy Both Cardano and Solana?

Solana is an established crypto, and you don’t have to spend a lot of effort to buy it. You can buy SOL and ADA tokens on crypto trading platforms such as Crypto.com, Coinbase Global Inc, SoFi Technologies Inc, etc. For beginners, Coinbase is more suitable as it is easy to use.

Conclusion

Both coins have excellent growth potential. Thus, none of them can be written off. Instead, given the lower current price of Cardano, it has the highest upside potential in terms of investment potential. However, Solana pros have significant advantages over Cardano, whether it’s validating transactions speed or fees. The choice is yours, but you can’t go wrong whatever you choose.

FAQ

Should I invest in Solana or Cardano?

Cardano is an essential comparison between Solana and Cardano because the token is unique among other cryptocurrencies. The Cardano network offers a secure, dual-layered system for processing transactions.

Is Solana faster than Cardano?

Solana is well-known for its fast and efficient transactions but is still under attack from Cardano and Ethereum. In contrast, Cardano has a unique validation mechanism.

Which crypto is better than Solana?

Ethereum wins because its position in the Ethereum market was established in 2013 when Solana entered the market at the beginning of 2020 and because it prefers more transparency than Solana.

Is Solana a good investment?

Does Solana matter? Like all small altcoins, investments in Solana have risks. However, experts point to Solana’s potentially stable and relatively stable market share compared to others.

Network penetration testing checklist

Network penetration testing checklist

Network penetration testing checklist

In a technology-oriented world where every company, organization, and individual is cementing its digital presence to access and benefit from numerous opportunities available, the matter of cybersecurity comes to the first plan. Unfortunately, frequent cyber-attacks and data leakage have become the norm, pushing companies to make solid network security and data management efforts. Today, we constantly witness many network outages and security breaches, primarily due to attacks targeting organizations’ networks or vulnerabilities in software products.

That’s why correctly planned and implemented security measures have become a must for most organizations to avoid troublesome and harmful consequences in a safety aspect. And a comprehensive network pen test is one of the most efficient methods the industry experts recommend for securing networks and data infrastructure.

So, if you are also from the group of people wondering how to explore the potential vulnerabilities existing in your network or applications, then continue reading to find out the core steps for a productive network penetration testing checklist and methodology.

What is Network Penetration Testing?

With an increasingly growing number of cyber threats associated with networks, web apps, servers, and operating systems, the need and importance of constant security revisions become imperative. And this is precisely where the network penetration testing comes to light bringing various solutions like simulated attacks and ethical hacking for discovering security gaps and vulnerabilities impacting the target system.

In this context, a network pen test is a tool of significant importance that you can use to detect security misconfigurations and potential exposure of vulnerabilities that risk harming the company’s networks, applications, and data security when exploited by malicious hackers.

However, organizations that have put their security systems through vulnerability assessment tools somehow doubt the effectiveness of pen tests since both processes have the same goal. But, it’s undoubtedly not the case, as network penetration tests generally happen after vulnerability assessments. Also, unlike vulnerability scanning, which uses automated tests to conduct security checks, the penetration test puts forward ethical attacks.

After thoroughly performing network penetration testing you can get various benefits:

  1. A network penetration test will enable you to identify all the vulnerabilities and security flaws currently existing in your system and protect sensitive data.
  2. After comprehensive penetration testing, you’ll be able to outline the level of security risk that your company is running.
  3. The final reports presented by a network pentester will help you map a proper plan to solve and remedy the problems.

Network Penetration Testing Steps

As we have already ensured the mandatory nature of a penetration test, now let’s move and get into the network pentest checklist. Here we gathered a step-by-step guide you can follow while running a network penetration test for your company’s system. So, without further ado, let’s dig in.

#1 Information Gathering

The primary goal of the discovery phase in the network penetration testing checklist is to collect as much information and materials about the target network as possible.

Foundational Information

It covers target network hosts and endpoints like IP Addresses, DNS Records, Host Names, etc. After getting IP addresses and URLs, technicians can use various tools such as Nmap and Metasploit framework to specify IP, DNS records, and certain server software versions.

Open Ports Information

Another piece of crucial information required is the open port’s availability. These are the most typically used openings for hackers to obtain unauthorized or backdoor access into a company’s network to install malicious scripts. Here, a pen tester generally uses porting tools to detect all open ports in the entire system.

System Names and Shares

You can gather these details via Network Information System and NetBIOS enumeration searches. Both of them are generally implemented in internal penetration tests.

Employees Contact Information

Core details about employees and personnel, including personally identifiable information, can be gained via directory servers and web searches.

#2 Threat Modeling

After gathering all the necessary information, it’s time to use it for running tests on the target system and searching for obvious security vulnerabilities. At this stage, penetration testers enlist the known vulnerabilities on the network without necessarily getting ahead to attack them.

Here you can use automated scans to test for network system vulnerabilities or choose the option of manual tests to perform a thorough penetration test with live technicians.

#3 Vulnerability Analysis

When the vulnerability reports are ready, you need to categorize and prioritize the security flaws and identify suitable targets according to their severity, as not all vulnerabilities are worth exploiting. In addition, it helps formulate a proper attack plan for exploiting the real-world attack vectors.

Furthermore, the pentesters can create a network diagram that helps them understand the logical network connection path.

After noting the typical targets for exploitation, it’s time to decide the most appropriate attack vectors for the vulnerabilities identified.

#4 Exploitation

The critical phase of the entire penetration testing is exploitation. It is the process of probing the networks’ flaws and obvious vulnerabilities to determine whether they are exploitable or not. Due to this step, the companies can discover the most dangerous defects and problems that need to be resolved quickly. A penetration tester uses testing and password cracking tools such as Burp Suite, Metasploit, and Wireshark for exploitation.

Moreover, this network penetration testing phase might also include other complex and heavy manual testing tasks that generally are very complicated. Such vulnerability exploitation covers password cracking, SQL Injection, OS commands, buffer overflow, and even social engineering.

#5 Reporting and Presentation

The delivery and reporting phase is the final and most crucial step of executing network penetration testing. Generally, a detailed network pentest report covers the review of the entire penetration testing process and also the most critical network vulnerabilities that require a solution – in order of urgency.

Some reports will also include the screenshots of exploit attempts, a summary of security risk and vulnerability statistics, and a plan of further activity, including appropriate remediation solutions.

FAQ

What is the goal of network penetration testing?

If in a few words, the main goal of a network pentesting is to discover and exploit vulnerabilities and potential weak spots in a company’s operating system that malicious hackers can exploit.

What is the difference between network pentest and a vulnerability scanner tool?

The main distinguishing feature between a vulnerability scanning and a network penetration test is their way of performing a test. In the case of a vulnerability test, the process is executed through automated tools while a team of security experts performs a penetration test.

What tools are used to perform network penetration testing?

Here are a few security tools you can consider to conduct network pentests for your network.
Nessus – It’s a vulnerability scanning tool meant for the vulnerability assessment process and software security. Nessus is an excellent option for finding software bugs and flaws.
Wireshark – It’s a pentesting tool designed for audit and packet sniffing to monitor entire network traffic.
Hydra – You can use it for gaining unauthorized access and brute-forcing login.
NetCat – It’s a port scanning tool used to write and read in a network.

How much do network penetration testers earn?

The average salary of a pen tester is around $90.000 annually. This number can differ depending on the location, company, and job specifics.

How to buy real estate in the Metaverse

How to buy real estate in the Metaverse

How to buy real estate in the Metaverse

Have you ever thought in your wildest dreams that one day you can have a chance to buy land that doesn’t exist in the physical world? With the fast growth of technology, everything becomes attainable with the blinking eye. Moreover, with time people spend more and more time online, especially after the quarantine. Considering this fact, developers try to find better ways to blend real life with virtual.

One of the most trending topics nowadays is Metaverse. The platform’s Marketplace allows you can interact with the rest of the users and make money. Of course, the primary way to do so is to invest and buy virtual land to obtain some form of a dwelling. It goes without saying that using virtual environments for work, studying, and having fun is an inevitable future for humans. Learn the ropes to buying a metaverse real estate and avoid any Metaverse security issues. Even if you have no plans to purchase real estate in the nearest future, the following information will be food for thought.

Why do I need virtual real estate?

The concept of the Metaverse is a topic of hot discussion nowadays. It became even more viral when Facebook and Instagram got a collective name, Meta. Mark Zuckerberg believes that Metaverse will be the next big thing and reported his intention to invest in this virtual reality area. Though virtual plots may seem like unreasonable investments, they are very similar to real-world real estate in many ways.

First of all, the virtual properties are limited as in the real world. If you possess virtual real estate, you own an exceptional parcel of land in Metaverse. You can do whatever you need with it, including creating income-generating structures or entertainment venues that charge entrance or boost a brand.

Then, Metaverse real estate provides unique parcels secured by non-fungible tokens or NFT. NFT Marketplace certifies your right and authorizes you to sell the property to another person or organisation.

Last but not least, the Metaverse is also democratized, which means that it isn’t owned by a single organization, person, or entity. Instead, anyone can invest in it and use available space, technologies, and environments.

Where to buy virtual real estate?

As the Metaverse grows in popularity, many governments, corporations, and celebrities are into business. Today’s most virtual land sale occurs on four Metaverse platforms: The Sandbox, Decentraland, Cryptovoxels, and Somnium. Yet, the services they offer are different. The parcel exists as a non-fungible token or NFT hosted on the blockchain.

The Sandbox is an example of a virtual world where players can getthe most of their gaming experiences. So players can rent or buy land and settle the way they wish. By the way, Snoop Dogg and Steve Aoki owe virtual land right here. Therefore, purchasing real estate close to theirs can cost you arms and legs. But, as they trust their data to a website like this, ownership here is worth considering.

Decentraland 3D virtual world allows its users to study digital space and buy virtual plots of land. Moreover, you can make your payment for a game with or without a crypto wallet. By the way, Decentraland uses its own currency, MANA. You can design digital assets using the Decentraland editor or external software when you are the certified owner.

Cryptovoxels’ virtual world services include building, adding, and releasing blocks and segments. Owners can also make their virtual replica a “sandbox parcel,” making it accessible for anyone to build on.

Somnium Space is one of the open virtual worlds with its own economy and currency. Here users can create fully customizable avatars, property, and experiences. Use a VR headset to get the most out of the game.

How to buy metaverse real estate?

In order to avoid rooky mistakes, there are several steps worth knowing before looking for a store. If you are interested in buying digital land in the Metaverse, there are three things to consider:

Talk to a digital real estate broker.

The Metaverse has its real estate specialists whom you can turn to. The industry consists of mortgage providers, market brokers, and agents. Therefore, it would be best for buyers to consult and work with brokers and agents to find and invest in the best Metaverse properties.

Research a reasonable metaverse mortgage.

Time to explore an affordable Metaverse mortgage. One of the companies that offer this service is Terra Zero. It allows buyers to make a purchase on the top four Metaverse platforms mentioned above.

Terra Zero offers Metaverse mortgages and empty parcels that can be developed from nothing. There are also pre-designed, ready-to-use environments for events or gaming.

Buy property using cryptocurrency.

Are you curious about how to buy real estate in the Metaverse? To obtain virtual land, customers can:

  • Look for the property marketplace on the Metaverse platform they are most interested in. The platform is designed in a comfortable way to use.
  • Register, evaluate the site and plan of the land and compare pricing. Note that you have no access to the sales history.
  • Set up a digital wallet consistent with the Metaverse real estate selected as some of them use their specific way to fund the transaction.
  • Attach your digital wallet to the Metaverse account with specific type of crypto for your purchase.
  • Press to buy button to transmit the crypto sum, and here you are.
  • Now you can better develop your virtual real estate depending on the opportunities given by the stocks mentioned above.

Risks of buying virtual land in the metaverse

Investing overall comes with its share of hazards. Unfortunately, buying land in the Metaverse is not an exception. First, as it is a purely digital world for investment and value generation, you can feel insecure about having a place with no way to touch, let alone live in it.

Then, it can take a while to get a financial return from real estate as it will depend totally on the area and encompassing development. This is one of the reasons why only a few IT specialists buy virtual real estate.

However, there is no doubt that Metaverse real estate has become crucial for investors. Increasingly, investing develops its asset class taking into account many aspects that haven’t been explored yet.

Since you know how to buy real estate in Metaverse, now the ball is in your court! Make your investment and guarantee your future estate in the Metaverse.

Bitcoin exchange vs wallet

Bitcoin exchange vs wallet

Bitcoin Exchange vs Wallet

Cryptocurrency wallets and cryptocurrency exchanges are two main tools without which the cryptocurrency industry would not function fully. There are dozens of crypto exchanges and crypto wallets, but the same companies operate some. Therefore, it is necessary to understand the main differences between these concepts.

What are the Main Differences between Exchange and Wallet

The key difference between a cryptocurrency wallet and cryptocurrency exchange is their main purpose:

  1. With the help of the wallet, the user saves his BTC and other digital assets. It implies that the crypto wallet has anti-hacking functionality. Also, the user can store his currency for a long time and have access to it at any time.
  2. With the help of the exchange, various operations with cryptocurrency are carried out: buying, selling, transferring to a wallet, converting.

Exchanges are designed for convenient cryptocurrency trading, so users can store BTC and other cryptocurrencies on the exchange. However, it is recommended to keep funds in a wallet. The user who uses the wallet is responsible for its security, keeping backups, and making transactions.

Differences in Control

Storage of BTC and other cryptocurrencies can be carried out both in wallets and on exchanges. But in these two cases, control over personal funds has a fundamental difference:

  1. In the case of storing BTC in his wallet, the user has full control over the use of funds. Also, the user independently decides when and where to transfer BTC and other cryptocurrencies. All required passwords and private keys are stored on user resources.
  2. When a user stores digital funds in an exchange account, he transfers some control to the platform. It is similar to the situation where traditional money is kept in a bank savings account. At the same time, users lose some control since the bank can set certain restrictions.

Security is the main difference between a cryptocurrency wallet and an exchange. Storing cryptocurrency in wallets is always safer than on exchanges, as exchanges are prone to hacks, regulations, or other external influences that can restrict the use of funds.

Advantages and Disadvantages of Using a Crypto Exchange and a Crypto Wallet

Before deciding which tool to use to store BTC and his other cryptocurrency, the user must compare all the pros and cons of using a crypto wallet and an exchange for these purposes.

Advantages of using crypto exchanges:

  1. For beginners, keeping some of their funds in the exchange’s exchange wallet is a reasonable decision. It will help you quickly trade digital funds and significantly simplify the management and monitoring of the process.
  2. All major exchanges like Binance and Coinbase allow you to deposit coins and automatically set up your storage (exchange wallet). Also, the user can exchange the deposited amount instantly and without the need for a transaction.
  3. The crypto exchange provides an opportunity to work with fiat currency.
  4. In exchange-traded exchange wallets, the private key is stored inside the platform. Therefore, if a user accidentally forgets their passwords, there are ways to recover their credentials easily.

Disadvantages of using crypto exchanges:

  1. The use of exchanges that have their wallets still leaves users vulnerable to fraud. In this case, the account can be compromised in case of unsuccessful hacking.
  2. The need for verification.

Advantages of a crypto wallet:

  1. A crypto wallet it’s software with a set of private and public keys. Keyholders automatically own all the cryptocurrencies that the keys can grant access to. Thus, a cryptocurrency wallet it’s the right choice if a user wants to have complete control over their cryptocurrencies and easy access to them.
  2. The wallet is a convenient choice for those who trade BTC and other cryptocurrencies through a computer.

When a user uses conventional crypto wallets such as Ledger Nano X, CoolWallet S, etc., they are solely responsible for the security of their funds. The disadvantage of a crypto wallet is that if you lose your device or forget access passwords, no one can help restore access, and the funds will be lost.

Optimal Use

Choosing between a cryptocurrency wallet and exchange is one of the main decisions that any cryptocurrency user must make. Both of these tools allow you to store BTC and other cryptocurrency assets, but to choose, you need to compare all the factors and decide which of the tools will be more useful in the long term.

An exchange is a more convenient option for an experienced trader who constantly buys and sells digital assets and is not afraid to take risks. However, you must be careful: if the exchange does not provide cheats with sufficient security to protect the private key, that is, the risk that intruders can gain access to digital funds.

Practice shows that if the user selects an exchange with a built-in wallet function, it is optimal to store only those funds necessary for currency trading. The cryptocurrency exchange is indeed a very convenient option for professional traders. The exchange has many advantages for advanced users who frequently exchange BTC and other cryptocurrencies but rarely deposit and withdraw funds.

Also, using an exchange wallet is the most cost-effective and functionally convenient option for those who are not going to trade and make money on the dynamics of rates but only want to quickly and conveniently buy or sell a small amount of BTC or other cryptocurrencies.

But this tool is not suitable for everyone. For example, for users who plan to purchase BTC or another cryptocurrency and keep their coins for a long time in anticipation of an increase in quotations, a more logical option is to withdraw funds from a cold wallet.

Bitcoin exchange vs wallet

Bitcoin vs Euro: Comparison of the Largest Cryptocurrency with Fiat

Bitcoin vs Euro: Comparison of the Largest Cryptocurrency with Fiat

During the crisis, billionaires and large companies began to actively transfer capital to cryptocurrency, explaining this by having many advantages over traditional assets. Against the backdrop of escalating inflation, Bitcoin is perceived as a defensive asset.

This perception results in the investment of prominent venture capital funds, banks, and other institutions in Bitcoin. The main investor in BTC is MicroStrategy, with over 109 thousand BTC on its account. Tesla was another major crypto investor, with an asset of 43.2 thousand BTC. Square owns 8 thousand BTC, and according to the results of the first quarter of 2021, the income from investments in bitcoin amounted to more than $3.5 billion.

Why Cryptocurrencies Are Better Than Fiat Money

More and more people are beginning to be interested in digital money and use it in everyday life. What new opportunities do crypto assets open, and will they replace cash in the future.

According to a study by the Gemini crypto exchange, at the beginning of 2021, there was a significant increase in interest in cryptocurrency assets from users. According to a survey conducted on the exchange, more than 60% of US citizens are interested in cryptocurrencies for purchasing. More than 14% of Americans have already invested in cryptocurrency.

Monetary Instruments Versus Cryptocurrencies

Cryptocurrencies cannot replace fiat money as long as they are the only means for paying taxes, accounting reports, and other forms of interaction with the state. Cryptocurrencies remain a relatively high-risk investment vehicle primarily because the population’s digital literacy is at a low level.

An important factor is the high volatility of cryptocurrencies compared to fiat money. It is impossible to overcome it in the foreseeable future while the national currencies of large countries are stable. The state acts as its guarantor, which ensures stability. There are already cryptocurrencies whose rate is tied to the rate of fiat money, but these assets have different niches so far.

However, fiat money has some disadvantages:

  • complete lack of anonymity;
  • inflation susceptibility;
  • tracking transactions by states;
  • the risk of complete freezing of accounts, etc.

Why Is Cryptocurrency Better Than Fiat Money?

Among the advantages of cryptocurrencies are:

  • speed and low cost of transactions, especially when transferring large amounts;
  • no barriers to cross-border transfers;
  • full ownership of the asset.

No one can restrict the user’s access to his cryptocurrency assets. In the case of fiat money, the regulator can freeze funds in bank accounts.

Cryptocurrencies can provide full or partial anonymity for users. When dealing with fiat, this is practically unattainable, especially for digital transactions. Cryptocurrency allows the use of financial services without the participation of intermediaries such as the Central Bank or other regulatory bodies.

Lower Threshold of Entry and Responsibility

Many people perform all operations with cryptocurrency on crypto-exchanges without using complex software. This provides a low threshold for entry into the crypto market. Cryptocurrency wallets are installed directly on smartphones. Gradually, their convenience becomes close to that of traditional banking.

Getting into the cryptocurrency market is much easier than entering the stock market. Using cryptocurrency services requires less data than banking services. But the level of IT literacy is required much higher. Cryptocurrencies put full control over assets in the owner’s hands, but the responsibility is also placed on his shoulders. You cannot go to the bank and complain that the payment has gone somewhere wrong. The sender is responsible for the error.

Will Cryptocurrency Replace Fiat?

In the foreseeable future, fiat money will not go anywhere because this would mean a refusal of the authorities of various countries from monetary sovereignty. Many tools for managing the foreign exchange and stock market have also been developed specifically for fiat money. It will be necessary to completely abandon leverage with cryptocurrencies, which the authorities will not agree to.

Bitcoin vs Euro

In 2020, bitcoin is often opposed to the dollar and the euro. The reason is the limited emission, which no fiat currency can boast of. For example, because of the quantitative easing policy adopted by the Central Bank of the European Union, the money supply is growing, but the cost of the money itself is eaten up by inflation.

Thus, since May, the EURX index, which shows the euro’s strength against a basket of national currencies, has grown from 103 to 112 points. Against this background, Bitcoin strengthened much more actively, having experienced a local recession in the summer. Investors were actively transferring capital from fiat currencies to BTC as a defensive asset, judging by the dynamics.The regulator will not be able to restrict user access to his cryptocurrency assets. With fiat money, this can happen if bank accounts are frozen. Cryptocurrencies also provide a high degree of anonymity.

Bitcoin has several clear advantages over the euro:

  • lack of a centralized issuer;
  • decreasing inflation;
  • a finite amount, which has a positive effect on the price.

Thus, using cryptocurrency to preserve capital is more profitable compared to the euro.

The euro is limited only by the imagination and requests of the typewriter of the Central Bank of the EU, which continues to uncontrollably print the currency. In addition, the political situation in the world and the high dependence on the situation in the international arena tell us unequivocally that bitcoin is a more reliable way of preserving value today than the euro.

Bitcoin is also not subject to the devaluation inherent in the euro. In this regard, the rise in commodity prices leads to an increase in the purchasing power of cryptocurrency. At the same time, Bitcoin remains a highly speculative asset. The revaluation that it undergoes sometimes remains out of sight of the broader market. However, in the current conditions of a deep crisis, economic recession of the world’s leading economies, and the euro’s devaluation, this phenomenon may become much more noticeable.

The price increase is the main advantage of bitcoin over the euro, however, and over other currencies. In 2021, the euro lost more than 200% against BTC. But this difference could become even more significant because BTC has growth potential that fiat money is not capable of.