Cryptocurrencies have attracted a huge amount of media attention recently. The most well-known currency is Bitcoin but there are numerous others. A lot of the media discussion, however, is ill-informed and focuses on issues that are not properly understood.
The term cryptocurrency refers to digital forms of token exchange. Cryptocurrencies are protected by a cryptographic framework, which means that the supply of currency is limited and transactions are tracked and logged in a ledger that cannot be modified once it has been written. There is a limit at which no more currency can be made (mined) and no more tokens can be issued.
These currencies are entirely virtual. There is no physical form, and the value is limited to the digital transaction. Bitcoin is held in a wallet, which might be stored on your own personal hard drive or on a server “in the cloud”. Each Bitcoin wallet … Read the rest