Cryptocurrencies are the virtual currencies which are not issued by any government and they exist only in computers. Interesting fact about cryptocurrency is that there are no physical coins or paper bills/notes.
Nobody can manipulate it much like currencies as value of them depends only on supply and demand. Although theoretically cryptocurrencies are free from government interference or central banks, in practice it’s not true. Governments of some countries have restricted trading and allowable uses of it
Why are cryptocurrencies unique?
The most attractive feature of cryptos is anonymity because during trades ownership information are kept in encrypted, distributed networks. But this feature provides a perfect environment for criminal uses such as money laundering and illegal trafficking.
Drawback of cryptos?
They don’t have any fundamentals to analyse.
The first cryptocurrency was Bitcoin. It was launched in 2009 by an individual or individuals known by the pseudonym Satoshi Nakamoto. Over the time, more than 1,000 other cryptocurrencies have appeared. Ethereum, Ripple, Litecoin, Monero are names of few other prominent cryptos.
Coins are mined in computers. One (miner) needs to solve complex mathematical equations to bring new coins into existence. Creating new coins is an energy intensive process and may require more power than consumption in an entire small country.