Cryptocurrency has been gaining more and more importance since the financial crisis in 2008. While some trust digital money less, there are more and more who see crypto currency as a promising investment and financial investment. But what exactly is cryptocurrency and how does digital money actually work? Cryptocurrency – a brief definition The term cryptocurrency, i.e. currency in the form of digital money, is derived from cryptography. The function of the latter is to prevent transactions being manipulated or money being spent twice. Although there is already digital money in Germany in the form of credit cards, checks, bank transfers, etc., it is not considered legal tender. Instead, cash must be paid into a bank account or a loan must be made. Cryptocurrencies, on the other hand, allow payment without the involvement of banks and credit institutions, although at the same time there is still a demand for cash.…
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