What is Cryptocurrency? - Mine Digital

What is Cryptocurrency?

Posted on: September 4, 2019
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Mine Digital

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A cryptocurrency is a digitally represented, cryptographically created token that has the attributes of a currency.

A cryptocurrency is a digitally represented, cryptographically created token that has the attributes of a currency.  Although the most well-known cryptocurrency is Bitcoin, of the attributes of currency – durability, divisibility, portability, acceptability, limited supply and uniformity, there are better fits than Bitcoin as an acceptable medium of exchange. Among those we might consider Bitcoin Cash, Litecoin or Dash.

Comparing cryptocurrency to digital fiat currency, the advantages as a representation of money are clear. Cryptocurrency is, generally, strictly uniform, highly divisible, highly portable, durable, of limited supply and with growing acceptability.  In many respects, cryptocurrency is more like money than traditional concepts of money. Its difficulty in being recognised as such by many highly respected finance and market experts show that Bitcoin is also a philosophical position on what money actually is – a position that has been a resounding success.

Bitcoin is the gold standard in cryptocurrency, earning a status as an idealised representation of the ideas and philosophy behind their existence and use. To learn more about how cryptocurrencies work, please consider our intermediate article How Does Bitcoin Work?.