What are cryptocurrencies?
A cryptocurrency is a digital coin, designed to be transferred between people in
virtual
transactions. Cryptocurrencies exist only as data and not as physical objects;
you cannot
actually hold a Bitcoin in your hand or keep Ethereum in your safe.
Decentralized cryptocurrency is produced by the entire cryptocurrency system
collectively, at
a rate which is defined when the system is created and which is publicly known.
In
centralized banking and economic systems such as the Federal Reserve System,
corporate
boards or governments control the supply of currency by printing units of fiat
money or
demanding additions to digital banking ledgers.
“Owning a Bitcoin means you have the collective agreement of each and every
computer on the
Bitcoin network that it is currently owned by you and – more importantly – that
it was
legitimately created by a miner.”
A cryptocurrency, crypto currency or crypto is a digital asset designed to work
as a medium
of exchange wherein individual coin ownership records are stored in a ledger
existing in a
form of computerized database using strong cryptography to secure transaction
records, to
control the creation of additional coins, and to verify the transfer of coin
ownership. It
typically does not exist in physical form (like paper money) and is typically
not issued by
a central authority. Cryptocurrencies typically use decentralized control as
opposed to
centralized digital currency and central banking systems When a cryptocurrency
is minted or
created prior to issuance or issued by a single issuer, it is generally
considered
centralized. When implemented with decentralized control, each cryptocurrency
works through
distributed ledger technology, typically a blockchain, that serves as a public
financial
transaction database.
