What is cryptocurrency? It seems like a pretty basic question, but when you get into the nitty-gritty details, it can actually be quite confusing. Most people are generally aware that cryptocurrency, a specific type of digital currency is, well, a currency that is digital.
But how come an internet meme of a dog can be deemed cryptocurrency? And let’s not forget all the cat coins out there! Is it really cryptocurrency? It seems so unprofessional. What makes a currency legit? Let’s look at a few general markers for something being cryptocurrency.
Cryptography is what puts the crypto in cryptocurrency. “Cryptography is a method of protecting information and communications through the use of codes,” according to WhatIs.com. In short, cryptography keeps virtual currency secure and irreplaceable.
Cryptocurrency is almost always mined on a blockchain, which is a digital ledger used for Bitcoin and other cryptocurrencies to track transactions and keep them secure. This is one of the most essential aspects of any cryptocurrency, and what sets crypto apart from other digital currencies. It regulates the currency, keeps it secure, and allows people to trust the transactions as true and verifiable.
Rather, it's the difficult process one must go through to ‘mine’ most cryptocurrency that helps give it value. It takes about 10 minutes to mine a single block on the Bitcoin blockchain (currently worth 6.25 BTC) and 72 terawatts of power. This time and power used to acquire the currency is a huge part of what makes it valuable, because not everyone has access to the machines that are capable of doing this.
Disclaimer: The information and views supplied on the Coin Cloud blog are for educational and entertainment purposes only. We are not financial advisors, so please do your research and consult with a trusted financial specialist before investing your money.
Founded in 2014 in Las Vegas, Nevada, Coin Cloud is the leading digital currency machine (DCM) operator. With over 4,500 locations nationwide, in 48 states and Brazil, Coin Cloud operates the world’s largest and fastest-growing network of 100% two-way DCMs, a more advanced version of the Bitcoin ATM. Every Coin Cloud DCM empowers you to quickly and easily buy and sell over 40 cryptocurrency options with cash.
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