Cryptocurrencies Are Digital Assets Secured by Cryptography

Cryptocurrencies are privately competing currencies that compete with other types of money and payment systems. The terms electronic moneyand digital currency are used interchangeably with the term cryptocurrency.

Unlike physical currencies, such as gold and U.S. dollars, cryptocurrencies do not exist physically or even digitally. Instead, cryptocurrencies are an accounting ledger that keeps track of how much money each account user owns. Cryptocurrencies are intriguing for economists because each one has a unique monetary policy.

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There Are Over 1000 Different Cryptocurrencies

At the time of this writing, Bitcoin is the most famous and the most valuable cryptocurrency. Each Bitcoin is worth approximately $2400 USD. However, several cryptocurrencies were created by copying the open-source code for Bitcoin and then making a minor change. Dogecoin was originally released as a joke cryptocurrency; however, Dogecoin’s market capitalization in June was close to $340 million.