Cryptocurrency is, simply put, digital money, that can be moved from peer-to-peer in a decentralised network. All information about transactions and users is encoded and saved on thousands of servers and is impossible to falsify.
Bitcoin and Project Libra
What is Bitcoin actually?
The Bitcoin is the first cryptocurrency, that was published in 2008 and implemented in 2009. The price is determined at the stock exchange by the principal of supply and demand.
The main difference between traditional currencies and Bitcoin is, of course, that you cannot hold Bitcoins in your hand, but also that Bitcoins are transferred directly from user to user in a decentralised network, without any bank or financial institute involved. Another characteristic is that you keep Bitcoins in a digital wallet on your own computer or smartphone, which means that you own it and nobody can freeze these funds, but also that you are responsible for its safety. There are no limits to how much or how many transactions you can do with your own Bitcoins and there are no fees when trading between different currencies. Also, the Bitcoin is limited to 21 million, which eliminates the risk of inflation.
Project Libra from Facebook
Currently there are a lot of news about Facebook creating their own cryptocurrency. Internally it is called “Project Libra”.
According to Facebook it is supposed to be used for transactions between currencies in the beginning to avoid the high fees from competitors. But the goal is to create a global currency for all kind of trades.
Different to the Bitcoin, the Libra is supposed to be more stable in its price. The goal is to implement in 2020.