Cryptocurrencies are a type of currency that is available only in digital form, and does not have a physical presence such as banknotes and coins, and it is a program written in a specific programming language and using global encryption techniques that make the process of hacking and manipulating it almost impossible.
Cryptocurrencies are issued in a decentralized manner through mathematical algorithms and through computer programs and the development of work in these currencies over the past decade, as their trading operations have been organized and oversight controlled through the “Blockchain” which monitors exchanges and knows all account.
The origins of digital currencies date back to the 1990s, and one of the first of these products was electronic gold “i-gold”, which was established in 1996. Another well-known service for digital currencies is “Liberty Reserve” and it allowed users to transfer dollars or euros to “Liberty Reserve” and then “QQ” appeared Q coins were introduced in early 2005 as a type of commodity-based digital currency. Q coins were so effective in China that they were said to have a destabilizing effect on the Chinese yuan due to speculation. Recent interest in crypto exchanges has sparked a renewed interest in digital currencies with the use of Bitcoin in 2008 to become the most widely used and accepted digital currency.
Many of the current digital currencies have not yet seen widespread use and cannot easily be used or exchanged. There are concerns that the cryptocurrency is very risky due to its high susceptibility to price volatility and potential for pump and dump schemes. Regulators in several countries have warned against its use and some have taken concrete regulatory measures to deter users as such, the government may shut down cryptocurrencies at any time.
The value of Bitcoin is largely derived from speculation and trading and its ineffective evidence-based energy has been criticized.
And if Bitcoin was the first currency that was issued among the digital currencies, there are a large number of digital currencies, and they did not have success as the Bitcoin, and these currencies, for example:
Ethereum, Ripple, Nem, Litecoin, Neo, Dash, and more.