by Jeff Nielson, Sprott Money:
Bitcoin and ethereum. By now, at least one of these names will be familiar to readers. These are “crypto-currencies”.
What is a crypto-currency? In general terms, a crypto-currency is a digital currency where the value/exchange rate of that currency is the product of a complex mathematical formula.
Proponents of these crypto-currencies are adamant that these formulae are valid and therefore this ensures the integrity of these new currencies. That point will be briefly addressed later in this article. For now the focus will be not on what crypto-currencies are, but rather what they are not.