a cryptocurrency or cryptocurrency is a medium of exchange using cryptography to secure the transactions and to control the creation of new units cryptocurrencies are a subset of alternative currencies or specifically of digital currencies Bitcoin became the first decentralized cryptocurrency in 2009 since then numerous cryptocurrencies have been created these are frequently called old coins as a blend of Bitcoin alternative cryptocurrencies use decentralized control as opposed to centralized electronic money / centralized banking systems the decentralized control is related to the use of bitcoins blockchain transaction database in the role of a distributed ledger decentralized cryptocurrency is produced by the entire cryptocurrency system collectively at a rate which is defined when the system is created and which is publicly known in centralized banking and economic systems such as the Federal Reserve System corporate boards or governments control the supply of currency by printing units of fiat money or demanding additions to digital banking Ledger's however companies or governments cannot produce units of cryptocurrency and as such have not so far provided backing for other firms banks or corporate entities which hold asset value measured in a decentralized cryptocurrency the underlying technical system upon which decentralized cryptocurrencies are based was created by the group or individual known as Satoshi Nakamoto as of March 2015 hundreds of cryptocurrencies specifications exist most are similar to and derived from the first fully implemented decentralized cryptocurrency Bitcoin within cryptocurrencies systems the safety integrity and balance of Ledger's is maintained by a community of mutually distrustful parties referred to as miners members of the general public using their computers to help validate and to miss temp transactions adding them to the ledger in accordance with a particular to miss stamping scheme the security of cryptocurrency Ledger's is based on the assumption that the majority of miners are honestly trying to maintain the ledger having financial incentive to do so most cryptocurrencies are designed to gradually decrease production of currency placing an ultimate cap on the total amount of currency that will ever be in circulation mimicking precious metals compared with ordinary currencies held by financial institutions or kept as cash on hand cryptocurrencies are less susceptible to seizure by law enforcement existing cryptocurrencies are all pseudo anonymous though additions such as saira coin and its distributed laundry feature have been suggested which would allow for true anonymity.
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