What is Cryptocurrency?

A Cryptocurrency, also known as cryptosystem, is any digital currency that is mathematically predicated on peer-to-peer technology without the necessity for a third party to back it up. This means that in the case of the Internet and email networks, there is no central server where all transactions are made and every transaction is traceable to the person initiating the transaction. Cryptocurrencies are usually created as a result of an open source software project that allows anyone who understands the basics of computers to build their own private network, or “blockchain”.

A Cryptocurrency, in the simplest terms, is a form of currency that can be traded online with real people. However, unlike a regular currency that can be bought and sold at any given point of time, a Cryptocurrency cannot be bought or sold (although it can be “printed” in the future if required). Instead, a Cryptocurrency is a virtual asset that has no physical value that can be easily assigned to an entity. In the Cryptocurrency field, this asset is stored in what is called a distributed ledger called a block chain. This means that a certain number of specific computers running a specific program all have access to the entire chain at the same time.

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Now, that the general public is more familiar with Cryptocurrencies and how they work, new units will be introduced in the marketplace. These new units will be referred to as Cryptocash, and there will be two main types: colored and proof-of-stake. Colorful Cryptocash will be introduced in 2021 and will be a variant of the now popular “ICO” or “ICO coin”, which describes a new type of coin that has already been issued. Proof-of-stake Cryptocash will not be introduced in 2021 but will be introduced about three years after the main debut of Cryptocurrencies. As new applications of Cryptocurrencies become available, the market will continuously grow providing greater incentive for new investors.