Bitcoin explained: How it works and what it is good for
The most prominent of cryptocurrencies, Bitcoin has seen wild swings in value lately, making retail investors wonder if its worth wagering their money on it. DW abstains from any advice, but explains how Bitcoin works.
The cryptic token
Bitcoin is thought of as a digital currency because it exists only virtually, without any physical coins or notes. It resides in a decentralized, encrypted network that is independent of commercial or central banks. This allows Bitcoin to be exchanged under the same conditions all around the globe. It's also a cryptocurrency, because it uses encryption to conceal users' identities and activities.