What is virtual currency? Cryptocurrencies are private money, that is, they are not issued by a government or a traditional monetary body like central banks or any other financial institutions. They are in fact issued in a decentralized manner. As a result, virtual currencies make it possible not to go through the current banking system. That’s why we can think of them as alternative currencies. They are issued via blockchain technology and are governed by a code, secured by cryptography, which makes them inviolable.
You cannot break the code and all the information is checked and recorded in a gigantic accounting book open to all. The scams and frauds of all kinds (numerous) which are related to cryptocurrencies do not concern the crypto currencies in themselves, but the wallets through which they are held. Since the creation of Bitcoin in 2009, more than 2,000 cryptocurrencies have been created, although there has been a marked slowdown since the bubble of 2017-18.
What is cryptocurrency used for? Advertisementetoro virtual currency Cryptocurrencies have a very wide variety of purposes. Some wish to become: An alternative to real currencies, allowing the purchase of classic consumer goods, such as Bitcoin. Several platforms like Overstock or Shopify allow you to buy food, cosmetics, computer equipment, etc. using the tokens held in its virtual wallet. An alternative to venture capital.
This is the case with cryptocurrencies launched during ICOs, these alternative fundraisers that finance a project by issuing cryptocurrency. The tokens or tokens are then used as a means of financing to develop an innovative project. Most often, these tokens are intended to pre-order a product or service. They will be used to acquire the product or service once it has been developed.