What is cryptocurrency, and how is it valued?-Forum-Culture Informatique

Fiat currencies like U.S. dollars and euros are forms of money issued by governments to serve as legal tender. Cryptocurrencies like bitcoin, on the other hand, are « non-fiat, » non-governmental forms of « digital cash » to be used for electronic payments. The idea of « digital cash » isn’t new—it started with credit cards, PayPal, Venmo, and others to satisfy the need for easy, traceable electronic payments. But those payments are tied to fiat currencies managed by central banks, whereas cryptocurrencies are managed by technology, specifically cryptology. Proponents believe the value of a cryptocurrency is based on the quality of the cryptology, the number of cryptocurrency units created, and the technology that limits the creation of additional units. Like any traded item—think baseball cards—the value often depends on supply and demand: The fewer units available, the higher the price potential buyers are willing to pay.