What is Cryptocurrency? Answers to 8 Common Questions

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Cryptocurrencies like Bitcoin, Ethereum, and dozens of lesser-known digital currencies frequently appear in the news.

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But these news reports usually do a poor job of explaining what cryptocurrency is if they attempt to do so at all. You can try searching the internet to learn more about cryptocurrencies.

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This post strives to answer eight frequently asked questions about cryptocurrency in the most unbiased manner possible.

Cryptocurrency is any digital store of value that one can exchange for goods and services.

1. What is Cryptocurrency?

Cryptocurrency was initially conceived as a way of as a virtual currency and alternative form of payment versus traditional banking.

2. What Is the Purpose of Cryptocurrency?

All cryptocurrency transactions are recorded on a blockchain public ledger. These ledgers are known as decentralized networks. 

3. What Is Blockchain Technology?

Every transaction includes three critical pieces of information: Input, Output, and Amount. 

4. What Do Transactions Look Like on the Blockchain?