Bitcoin and cryptocurrencies A cryptocurrency is a digital asset that is designed as a medium of exchange. It uses cryptography to secure transactions and control the formation of additional currency units. Cryptocurrencies are digital currencies, a subset of alternative currencies. The most popular cryptocurrency is Bitcoin, and since its invention, the various new cryptocurrencies have often been referred to as Altcoins, short for Bitcoin alternative. Bitcoin was developed as a peer-to-peer system for online payments without the need for a trustworthy central authority. Since its invention in 2008, Bitcoin has grown into a currency, technology, investment vehicle, and community of users. It is actually believed to be the first cryptocurrency, although, as mentioned, similar systems already existed. Because the Bitcoin system works without a single administrator (like PayPal) or a central repository, the US Treasury Department has categorized Bitcoin as a decentralized virtual currency. In fact, the first decentralized digital currency would be a more correct designation than the first cryptocurrency. Since all transactions are digital and take place directly between users and without intermediaries, it is important to ensure that users do not spend more bitcoins than they own. Therefore, all transactions are verified by network nodes and recorded in a publicly distributed ledger, the so-called blockchain. While everyone has heard of Bitcoin and other cryptocurrencies, few have extensive knowledge of how they work. In the remainder of this article, we'll share the main pros and cons to consider before taking advantage of the power of Bitcoin. http://www.confiduss.com/en/services/solutions/corporate/cryptocurrency-license/