FinanceguyHQ 0 Comments bitcoincryptocurrency When is a crypto-coin not a coin? However, there is a difference between these terms.

It all depends

The coin We can refer to Bitcoin as a coin. It was the first digital cryptocurrency that successfully entered the mainstream arguably! It all depends What we call the various cryptocurrency depends on its intended use. Clearly there are cryptocurrencies that are designed for storing value such as Bitcoin or Litecoin. There are other cryptocurrencies designed for replacing middlemen such as lawyers, brokers and fundraisers.

Ethereum is a good example of such a cryptocurrency. Alternatively, there are cryptocurrencies that deal with transactions at lightning speeds like Ripple and Dash. Altcoins are blockchains Altcoins are cryptocurrencies that are based on an individual blockchain.

However, there are two different ways to produce the new blockchain. Some cryptocurrencies are based on the same blockchain code as Bitcoin. Examples include Litecoin and Dogecoin. However, there are other types of altcoins that are based on their own unique blockchain such as Ethereum.

Ripple, Neo and Dash are further examples of cryptocurrencies created for a specific purpose that the Bitcoin blockchain cannot achieve. As such, a new blockchain is created for the specific purpose. However, we still refer to cryptocurrencies that are based on new blockchains as Altcoins despite the fact that they may have far more flexibility than Altcoins based on the Bitcoin blockchain.

Tokens live on existing blockchains Tokens are different to altcoins.