This is the value of the terra cryptocurrency this day

LUNA, the native cryptocurrency of the terra blockchainwas created in January 2018 and has quickly become one of the most popular altcoins, especially among Argentines, who have had to seek alternatives to the financial instability their country has been facing for several decades.

To understand LUNA it is necessary to talk about terra, the blockchain network established through the Cosmos SDK software and whose particularity is creating calls stablecoins which, as their name suggests, are cryptocurrencies that seek stability through a link with legal currencies, commoditiesamong others, that “erase” the volatility that characterizes digital assets.

earth aims to eliminate scenarios where a cryptocurrency can have ups and downs in the blink of an eyeas is the case with bitcoin, to achieve mass adoption and that this currency can be used in decentralized transactions and institutions.

In this scenario, terra wants LUNA users to be able to make purchases with their electronic wallets and those who receive the payments can have an automatic change to another currency, such as the dollar or the peso with rates of less than one percent.

However, there is also the case of tether, another of the cryptocurrencies that is based on stablecoinshad to pay a debt of 41 billion dollars for misleading its users by pointing out that it had all its coins backed when in fact it only had 10% of them insured.

To anchor the stablecoin of land, the creator must convert it into a fiat value of LUNA , that is, for the value of one euro, one dollar, one peso, one pound, depending on where the financial operations will be carried out. When the value does not match, users are incentivized to stabilize the price by either burning or creating cryptocurrencies, and users can earn rewards by making stakethat is, buying or storing the assets.

Terra cryptocurrency price

Hour: 4:05 p.m. (UTC time)

Worth: $1.8322766

Change in the last 24 hours: -3.39%

Change in the last hour: -0.59%

Popularity by capitalization: #227

Cryptocurrency, what is it and how does it work?

(Photo: File)

Digital currencies were born in 2008 as an alternative to the devaluation of several currencies as a result of the economic crisis of that year.

The first digital asset created was the bitcoin and over time others like litecoin, ethereum, bitcoin, cash, ripple, dogecoinsome of the most popular.

Cryptocurrencies work through a cryptographic encryption that guarantees the security of transactions, as well as the control of the creation of your units .

To make transactions, cryptocurrencies use a decentralized database, blockchain, or shared ledger.

It is important to mention that cryptocurrencies are digital assets that do not physically exist and, unlike currencies such as the dollar, the euro or the peso, they are not regulated by any institution and do not require intermediaries in transactions.

A worker helps a man with the use of bitcoin in front of an ATM of “Chivo”, the digital wallet backed by the Salvadoran government, in San Salvador, El Salvador. September 8, 2021. (Photo:REUTERS/Jose Cabezas)

The latter has caused that cryptocurrencies are not viewed favorably by the formal market, accusing them of being unreliable, volatile, promoting fraud, not having a legal framework that supports its users, allowing the operation of illegal activities, among others.

Even so, little by little the way has been opened to such a degree that companies, millionaires and even States have encouraged or authorized its use.

One of the world’s richest men, Elon Musk, has made comments in favor of digital currencies such as bitcoin and dogecoin, temporarily allowing their use at electric car company Tesla, triggering their cost to rise.

In The Savior, President Nayib Bukele legalized bitcoin, being the first country to do so. In the case of Mexicoone of the wealthiest businessmen in the country, Ricardo Salinas Pliego, has made public his intentions to accept cryptocurrencies in his companies, one of his main ones -the Elektra store- already does so.

For his part, the president of Argentina, Alberto Fernández, has suggested using its use to combat inflation. Even in Peruthe Central Reserve Bank warned that it was working on its own digital currency project.


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The article is in Spanish

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