In plain English, cryptocurrencies are decentralised digital assets that can be traded between users without the need for a central authority, almost all of which are produced through specialised computation techniques called “mining.”

The reason that currencies like the US dollar, British pound, and euro are recognised as legal tender is that a central bank issued them; digital currencies, like cryptocurrencies, however, are not dependent on the public’s bravery and belief in the issuer. As a result, a variety of factors determine its value.