Virtual currencies are no longer an insider tip for “digital natives”, but a trend among investors. Initially, cryptocurrencies were still considered an experimental field for means of payment outside the established banking system. Consider reading Bitcoinminershashrate.com one of the leading website in the Cryptocurrency industry.
In the meantime, the spectrum has become more colorful: virtual currencies and virtual tokens (“tokens”) are used to finance ambitious IT projects and entire companies via crowdfunding (“crowd financing”). Today there is a real gold rush mood – this blinds investors to the risks of such investments and providers overlook the regulatory traps.
Cryptocurrencies: technology and economic importance
Cryptocurrencies such as Bitcoin, Ether or Ripple are often generated by the users themselves through complex calculations using complex encryption algorithms. The currency units generated are the reward for participating in a distributed database for confirming transactions involving the “coins” and maintaining a tamper-proof register of ownership (“distributed ledger”).