What are virtual currencies all about?

30th July 2014

It’s nearly impossible to read the tech news without coming across talk of virtual currencies –more specifically, Bitcoins, or even Litecoins. So we’re here to tell you what it’s all about, and why you should (if you haven’t already) join the movement.
What is virtual currency?
Virtual currency (also known as digital currency or cryptocurrency) is an electronic currency that acts as an alternative currency that is neither government-funded nor backed by national currency.

Why should I use virtual currencies?
Virtual currencies allow you to make transactions with real good and services and does not limit you to just the online world. Additionally, its novelty has caused a soar in the value of these currencies, specifically Bitcoins and Litecoins.

What are Bitcoins?
Bitcoin is a virtual currency that enables you to immediately make payments to people around the world for less than a cent per transaction! Bitcoins are created on an open source encryption tool. Currently, Bitcoins are the largest online cryptocurrency. New bitcoins are created through mining, where people run software that competes to solve computational puzzles. Each time a puzzle is cracked, new coins are awarded and a new challenge is set. For more information, go to www.weusecoins.com.

What are Litecoins?
Litecoin, like Bitcoin, is a peer-to-peer digital currency that allows you to make payments around the world. The difference is that Litecoins can be mined at a faster rate. Litecoins are also generated through mining, and generate blocks every 2.5 minutes on average (four times Bitcoin’s rate). For more information, go to www.litecoin.org.

Best regards,
The CoinMama Team

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