Cryptocurrencies

Cryptocurrencies are digital payment methods based on cryptographic processes that operate independently of banks or governments. Their fundamental principle is decentralization, which is typically based on blockchain technology. This is a digital ledger that, according to its developers, is tamper-proof and is stored simultaneously on countless computers worldwide. The best-known cryptocurrency is Bitcoin, followed by Ethereum, which also enables the settlement of complex contractual relationships. The third-largest cryptocurrency is called Tether and is a so-called stablecoin because its value is effectively equivalent to one dollar. Originally, cryptocurrencies were intended purely as a medium of exchange; today, however, they serve as a speculative investment vehicle or digital store of value for many private investors.