However, the underlying blockchain technology and functionality of bitcoin are similar to many of the other widely used digital currencies, including Ethereum, bitcoin cash, and Litecoin.
We'll focus on bitcoin here to illustrate how digital currencies work. Bitcoin was the first, but there are hundreds of digital currencies.
It was originally intended as a medium of exchange that is created and held electronically. What exactly is bitcoin, and what are the risks involved in using it as a form of payment or as an investment opportunity? Here are some answers to frequently asked questions: What is bitcoin?īitcoin is the first and largest asset in the growing category of cryptocurrency (also known as digital currency). There are benefits and significant risks associated with digital currencies.Digital currencies like bitcoin are different from traditional forms of payment.
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