However, there are some cryptocurrencies that function more…

However, there are some cryptocurrencies that function more like digital commodities. For example, Bitcoin is often referred to as 'digital gold'. This is because, like gold, there is a finite amount of Bitcoin that can ever exist, and new Bitcoins are created through a 'mining' process. The value of Bitcoin doesn't derive from the performance of any central entity, but from the collective agreement of its users.