Cryptocurrencies are named after cryptography and mathematical algorithm. Their primary function is decentralisation, transparency, immutability, and security thanks to blockchain technology.
Cryptocurrencies are not bound by the borders or regulations of traditional fiat currencies; that's also why they are becoming increasingly popular. There is no single, centralised managing body behind Bitcoin that could influence monetary policy. Transactions are processed by computers that mine bitcoins.
Most countries have the right to print new money. Increasing money supply causes inflation – currency devaluation. In the case of bitcoin, the supply is finite and predetermined – 21 million bitcoins. That's why we talk about bitcoin as deflationary.
On one hand, transaction anonymity is an advantage; on the other hand, it allows for illicit use. Some cryptocurrencies are fully anonymous and prioritise total privacy.
Bitcoin was developed in 2009. It is the first decentralised cryptocurrency on the blockchain and set off a global revolution.
Its creator is anonymous, and only known under the pseudonym Satoshi Nakamoto.
Bitcoin is also known as digital gold, and thanks to its deflationary nature with clearly set rules, it is considered a great store of value.
Blockchain is a new technology used by most cryptocurrencies, including bitcoin. The information on a blockchain network is stored in blocks.
Blocks are created by miners, and subsequently linked according to defined cryptography rules. Blockchain is also called an "open ledger" – immutable thanks to its decentralised nature.
Browse frequently used crypto terms.
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