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ryptocurrencies in Latin America have increased in recent years, serving as a great alternative for the economy. The presence of this region of the world in this recent economy is quite firm and strong, generating many important gains. The management of crypto assets in Latin America has aroused the interest of many expert companies on the subject of FinTech. More and more people dare to invest in different cryptocurrencies to generate additional income and benefits. Knowing the management and impact of cryptocurrencies in Latin America helps to understand the behavior of these financial alternatives.
Cryptocurrencies are digital units that serve to exchange assets, which use cryptography as a means of production. They work like virtual currencies and with them transactions and commercial operations of great value are carried out, due to their importance. This whole system is protected by the miners, who are mainly ordinary people who carry out the extraction and main trade. Management is developed under the understanding of programming languages and algorithm processing that generate valuable information. Unlike well-known cash coins and other valuables, cryptocurrencies do not have centralized control. This allows that their value can fluctuate daily according to the demand for it and the value of them. It is a feedback process, since the same system establishes if more units of cryptocurrencies are needed.
The best known and most valuable cryptocurrency in the digital market is Bitcoin, which has an open source code. It was developed in 2008 and now remains at the top of the list of known virtual currencies. There are several companies that accept payment of goods and products with Bitcoins, managing virtual wallets as intangible safeguards. There are also security processes based on the deterrence of fraud, double payment and the falsification of fundamental algorithms. As with other cryptocurrencies, legality depends on the acceptance of each country because they have no specified owner. Countries must adapt their conditions to be able to accept and process payments with the different virtual currencies that are available. However, more and more companies are joining the management of cryptocurrencies, innovating in their economy.
The country with the highest participation and investment index for cryptocurrencies is Peru, with 16% of its population. However, other countries such as Argentina, Chile, Mexico and Colombia also have great relevance in the management of cryptocurrencies. Other countries in the region with highly affected economies, such as Venezuela, see the bitcoin alternative as a good option. This is because they only need an internet connection to be able to participate in crypto asset mining. Latin American countries represent a total of 7% of the share of cryptocurrencies worldwide. It is one of the regions that has had the most impact due to its rapid growth in this area and its internal permanence. The contributions that Latin America has generated in the cryptocurrency market have caused an excellent benefit in all aspects.
Experts in the area of cryptocurrencies expect that the participation of this region will increase in the coming years. This forecast is due to the instability of the economies of the countries that comprise it and other social factors.
The impact of social distancing with COVID 19 has made digital mining work more developed. It has proven to be a very beneficial source of income in the event of the downturns of the world's traditional economies. The use of cryptocurrencies in Latin America will allow a high modernization of financial transfers and very important economic movements. It is expected that in the long term all the economic processes of the world will be developed through virtual processing tools. With these innovations in financial technology, international transactions will be able to develop more easily, improving negotiations and productions. Cryptocurrencies represent a breakthrough in economic matters.
