What is Cryptocurrency?

Unless you've lived an extremely sheltered life over the last few years, you will almost certainly heard of Cryptocurrency.

In the last decade, what started out as niche products for buying pizza, are now being adopted by massive financial institutions and investment firms.

Some people have made a fortune, and some people have - literally - lost a fortune.

But what exactly is a Cryptocurrency?

So what is a Cryptocurrency?

Cryptocurrency is a digital form of currency, using techniques from cryptography to make them secure.

There are thousands of different Cryptocurrencies, the most well known of which are Bitcoin, Ethereum, and Ripple.

They use something called "decentralised control" which means that there is no single government or authority that can control said currency.

Many of them are seen as an alternative to traditional forms of money, for buying goods and services.

What's the point of a Cryptocurrency?

Supporters of Cryptocurrency argue that they are a hedge against the inflation we see in traditional currency.

They believe that Crypto has the potential to replace traditional money in the long-term.

Cryptocurrency can be more secure than traditional payment methods, and transactions can be made very private.

And some people just want to try and get rich off the increasing popularity of these tokens.

With them becoming increasingly mainstream, it is certainly something to watch with interest.

Read More: Xbox survey asks owners about Bitcoin payment methods

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