Where Does Cryptocurrency Come From?
It’s fairly common knowledge that cryptocurrency is a decentralized digital medium of exchange that isn’t issued by a government or bank. Most people are probably familiar with Bitcoin by now, and you might have heard of Ethereum, too. But those are just two of the more than 5,000 cryptocurrencies vying to be the next big thing.
With that many out there, you might be wondering where they all come from.
No bank and no government means no printing and no minting — but none is needed. Although you can spend it like regular money, cryptocurrency is born from an entirely different process altogether.
All Cryptocurrency Is Software
Many cryptocurrencies, like Bitcoin and Ethereum, are “mined.” Others are not. More on that in a moment.
No matter the origination process, all cryptocurrency is software that is created by code. That code determines absolutely every function associated with the cryptocurrency, from the way data are stored and how transactions are recorded to the distribution of mining rewards and the maximum supply of tokens to be produced.
With that many out there, you might be wondering where they all come from.
No bank and no government means no printing and no minting — but none is needed. Although you can spend it like regular money, cryptocurrency is born from an entirely different process altogether.
All Cryptocurrency Is Software
Many cryptocurrencies, like Bitcoin and Ethereum, are “mined.” Others are not. More on that in a moment.
No matter the origination process, all cryptocurrency is software that is created by code. That code determines absolutely every function associated with the cryptocurrency, from the way data are stored and how transactions are recorded to the distribution of mining rewards and the maximum supply of tokens to be produced.
