What is Catcoin?
Catcoin is a possible future cryptocurrency that has been developing under the radar for many years, but has not yet been fully developed.
Currently (April 15, 2023), catcoin.org has not launched any cryptocurrency or token, nor has published a line of code.
Since 2015, the year in which the domain catcoing.org was registered, many 'catcoins' have been released, using other domains, and the owner of catcoin.org has never been related to any of these cryptocoins or tokens.
What is a Cryptocurrency?
Cryptocurrencies or Cryptocoins are all the rage right now. Bitcoin, Ethereum, Litecoin and all of the other altcoins are exploding in value and interest. But what are they? How do they work? Why are they so popular?.
Cryptocoins are digital or virtual coins that use cryptography to secure their transactions and to control the creation of new units. Cryptography is the practice of secure communication in the presence of third parties. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009 by an anonymous person or group of people under the name Satoshi Nakamoto.
Cryptocurrencies are popular because they offer a number of advantages over traditional currencies. They are global, meaning they can be used anywhere in the world. They are digital, meaning they can be used for transactions online. They are secure, thanks to cryptography. And they are decentralized, meaning they are not subject to government or financial institution control.
Cryptocurrencies are also volatile, meaning their prices can fluctuate greatly. Bitcoin, for example, was worth less than a dollar in early 2011, but reached a high of almost $69,000 in 2021. Cryptocurrencies are often subject to speculation, meaning their prices can be driven up or down by investors beliefs about their future value.
Despite their volatility, cryptocurrencies are here to stay. Over the past decade, they have proved to be a safe and secure way to transact online, and their popularity is only increasing. While their prices may fluctuate, their long-term value is likely to continue to increase.
Differences between Token and Cryptocoin
Many people do not differentiate between tokens and cryptocoins, and to add to the confusion many tokens include the word 'coin' within their name, for example HyperCatCoin. However, these differences are very important.
A cryptocoin or cryptocurrency has its own blockchain, and you can set your transaction costs (low, expensive, or free). Examples of cryptocurrencies would be Bitcoin, Litecoin, Ether, Ripple, Dash, etc.
A token is a smart contract created within an external blockchain. There are many blockchains, such as Ethereum, Cardano, EOS, Binance Smart Chain (BSC), Stellar, Polygon, Solana, etc.
A token can determine the costs for each internal transaction, but in addition, each operation must also pay the costs of the blockchain on which it is built.
For example, a token built on the Ethereum platform, such as Shiba Inu (SHIB), has to pay a cost called GAS to the Ethereum blockchain for each operation.
This cost makes the use of a token built under the Ethereum platform ridiculously expensive for payments that are not hundreds or thousands of dollars, because the cost that each transaction has to pay in the Ethereum blockchain is about 2 or 3 USD or dollars americans (2022), but in 2021 it cost up to 70 USD.
Obviously using a token built on Ethereum (to give an example of a third-party blockchain), as if it were a cryptocoin to make a payment of 5 USD, when the cost of carrying out that operation is going to be 2 or 3 USD, or even more is ridiculous.
For that, it is better to use a traditional payment system such as VISA, MasterCard, or PayPal, which has a cost of approximately 1.8% to 3%.
- Send 1 USD = 1 + 3 = 4 USD (300%).
- Send 5 USD = 5 + 3 = 8 USD (60%).
- Send 10 USD = 10 + 3 = 13 USD (30%).
- Send 100 USD = 100 + 3 = 103 USD (3%).
- Send 1000 USD = 1000 + 3 = 1003 USD (0.3%).
However, this does not mean that using a real cryptocoin (not a token) is free, or almost free (as it should be), and in fact many cryptocurrencies have transaction costs high enough to make their use unfeasible in micropayments or small payments.
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