Bitcoin Global News

"What Are Cryptocurrencies? In its simplest form, a cryptocurrency is a digital or virtual currency. It’s a medium of exchange using cryptography to send secure transactions and control creation of new units. You might be thinking: Aren’t cryptocurrencies a fad? I can understand how it must seem that way. After all, what’s to stop anyone from just creating a digital currency? What actually gives a digital currency value? Cryptocurrencies create value through the so-called network effect. The more something is used, the more demand is created for it. So, what’s driving demand for digital currencies? Here are a few reasons: • They cannot be diluted. They have a set schedule of when they are released (and most have a finite supply). • There is no central authority. So, the value of digital money dictated by the marketplace, not a central bank. • They cannot be confiscated. Digital currencies do not have a central computer so they can’t be shut down or stolen by the government. • They are highly portable. You can carry $1 million worth on a thumb drive smaller than the size of a lighter." -Author, Teeka Tiwari