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What is cryptocurrencies?
Cryptocurrency is an internet-based medium of exchange which uses cryptographical functions to conduct financial transactions. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability. The most important feature of a cryptocurrency is that it is not controlled by any central authority: the decentralized nature of the blockchain makes cryptocurrencies theoretically immune to the old ways of government control and interference. Cryptocurrencies can be sent directly between two parties via the use of private and public keys. These transfers can be done with minimal processing fees, allowing users to avoid the steep fees charged by traditional financial institutions.
What is Bitcoin?
Bitcoin is the first decentralized electronic cash payment network that enables value to be transferred peer-to-peer. Unlike traditional payment networks, Bitcoin bypasses the need for a centralized body of control, such as a government or a central bank. Instead, activities and balances are stored on a public, shared ledger called the blockchain, which is verified by thousands of computers (called nodes) maintaining the network across the globe. Transactions are made with no middlemen so anyone with access to the Internet can transfer money to anybody anywhere in the world.