Cryptocurrencies: Economy and legality

Economy. The cryptocurrencies are used mainly outside any banking institution and are exchanged through the internet. Rates The rates in cryptocurrencies depend mainly on the offer of calculation capacity of the network at the moment and the user's demand for a quick transaction. The user can choose a specific tariff, while the miners process the transactions in decreasing order. It can simplify the process for the user by offering alternative priorities and determining the time it could take each. For ethereum, the rates are given by the computational complexity, use of the network and storage needs. In bitcoin, rates change according to the size of the transaction and if SegWit is used. In September 2018, the average tariff corresponded to 0.017 $ 23, while for bitcoin it corresponded to 0.55 $ 24. Exchanges Exchanges allow users to trade the currency for other goods, such as traditional currency or other cryptocurrencies. Atomic exchanges. The atomic exchanges are a mechanism where a cryptocurrency can be exchanged directly by another cryptocurrency, without the need for a third actor certified in that exchange. Initial offer The initial offers of currencies (ICO, in English) is a controversial means to raise funds for a cryptocurrency. New companies can use an ICO with the intention of avoiding regulation. However, securities regulators in many jurisdictions, even in the US and Canada have indicated that if a currency or token is an "investment contract" (for example, under Howey's test, that is, an investment of money with a reasonable expectation of profit). significantly in business or management efforts of others), is a security and is subject to the regulation of values. In an ICO campaign, a percentage of the cryptocurrency (usually in the form of "chips") is sold to the early sponsors of the project in exchange for legal currency or other cryptocurrencies, often bitcoin or ether. According to PricewaterhouseCoopers, four of the 10 initial offers of larger proposed currencies have used Switzerland as a base, where they are often registered as non-profit foundations. The Swiss regulatory agency FINMA stated that it would adopt a "balanced approach" to the ICO projects and allow "legitimate innovators to navigate the regulatory landscape and thus launch their projects in a manner compatible with national laws that protect investors and the integrity of the financial system. "In response to numerous requests from industry representatives, a legislative working group of the ICO began issuing legal guidelines in 2018, which aims to eliminate the uncertainty of cryptocurrency offers and establish business practices The use of these cryptocurrencies in illegal activities, as well as the impossibility on the part of governments to establish tax policies on transactions carried out through such means, is controversial: Bolivia has become the first country to prohibit explicitly the use of cryptocurrencies, in June 2014, after learning of the bankruptcy in Japan of the company Bitcoins Mt.Gox and harming more than one million people. In Venezuela before April 9, 2018, cryptocurrency mines were dismantled, arresting their owners for "legitimization of capital, illicit enrichment, computer crimes, financing of terrorism, exchange fraud and damage to the national electricity system." April 2018 by Decree the National Constituent Assembly legalizes all existence and creation of all cryptoactives including the Petro.32 It also allows any natural or legal person, private or public, to publish their own White Paper, 33 being the first step to start the process of registration and control of the new cryptocurrency to be created before the National Executive.34 Likewise, all state entities are ordered to prepare their bureaucratic structure in order to receive and pay with the cryptocurrencies that are duly registered. There are services like CryptoLife and WalletBuilders that help you create your own cryptocurrency quickly and easily. These services offer you all the technical knowledge to carry out the process, and through them your currency can be aired in a day. However, you should expect to be charged for the service and in addition, many ask you to explain your business plan and show that your interest goes beyond 'simple curiosity'.