Bitcoins are currently the best known cryptocurrency on the market. They exist only in the digital world, in a global digital network. Another big difference with traditional currencies such as Euros and Dollars is that no central bank is responsible for the production and management of the currency. Until now, we always bought online via an ‘intermediary’, a financial institution that guarantees the customer and supplier that the payment was safe and valid.
If you buy Christmas presents on Amazon with your Visa card, you do not have to pay immediately. Amazon sends you the package because they have confidence in the intermediary. In this case, the intermediary is the bank that gave you the Visa card, which in turn cooperates with the company ‘Visa’ in order to offer their cards. In exchange for this guarantee, the intermediary naturally wants to be paid: this can take the form of annual costs for your Visa card, an extra cost per transaction, etc This is perhaps the time to make a clear distinction between cryptocurrency and Bitcoin, because what exactly is that? Well, Bitcoin is one form of the many cryptocurrency currently available in the market. If Cryptocurrency are ‘Dogs’, then Bitcoin is just one specific dog breed.
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