Cryptocurrency, NFT, blockchain. Crypto-news, exchange rates, analytics

News about bitcoin, blockchain technology, cryptocurrencies, NFT. Reviews, analytics, exchange rates and the latest news about cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple and ICO

In today’s rapidly evolving technology environment, virtual currency such as Bitcoin is becoming more and more popular.

What are digital currencies, you may ask?

Well, a simple explanation is that digital currency is what is sounds like, a digital representation of real, physical money. It is, however, more complex than that, and over the next few paragraphs you will learn exactly what a digital currency is, how it works, and why it is necessary. Electronic currency, such as Bitcoin, is also called ‘cryptocurrency’. Cryptocurrencies operate using a very complex combination of secret keys, or number and letter combinations, that are propagated on a public ledger. This combination of secret keys ensures that there are no counterfeit Bitcoins created, and since the ledger is public, any attempted hacks are discovered very quickly. This provides a level of security that other currency models simply cannot provide, and as an investment vehicle it makes virtual currencies more attractive. Everyone knows exactly how many Bitcoins exist, and is able to find out the details of every transaction.

Virtual currency such as Bitcoin works in the following way:

This is very similar to a transaction involving physical currency, the only difference being the lack of bank or other third party involvement.

Now, why is virtual currency necessary?

A new, flexible form of payment encourages entrepreneurship. No longer are businesses tied down to only a few, local currencies. Now they can accept and process truly international currency, that has minimal regulations, and is worth only what the market says it is. This allows businesses to offer their services to more customers in more countries without having to process complex currency exchange formulas or pay exorbitant fees to middle men.

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