The Is A Virtual Currency Essay

2046 Words9 Pages
Many people would be not be wrong by saying that cryptocurrency is currency, after all, the name suggests that it is; however, that is unfortunately only half true because cryptocurrencies only exist in a digital domain, hence why it is also known as virtual currency. So what exactly is cryptocurrency? Cryptocurrency are essentially lines of code that are created by a cryptocurrency community using a process called mining (Bajpai, 2015a). The very first cryptocurrency that emerged was Bitcoin, created by Satoshi Nakamoto in 2008 and the software behind it has been released as open source hence why there are numerous alternatives of bitcoin, generally called Altcoins; Altcoins, basically, are like Bitcoins in many ways but not quite the same. (Guadamuz, Marsden, 2015). Much the same as some other physical monetary forms, for example, Pounds or Dollars, virtual currency is used as a medium of exchange for goods or services. On the other hand, virtual currency does not share the majority of the properties of a normal currency: cryptocurrency is decentralized, implying that it is not in any way controlled by any national bank, government or money related instituion, which basically implies that nobody can endorse or issue virtual currency (Bajpai, 2015b). Virtual currencies, such as Bitcoin, Litecoin and altcoins, are similar to currencies that exist in videos games where currencies are relevant only to a respective virtual environment (Guadamuz, Marsden, 2015). Real world
Open Document