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Bitcoin explained: How do cryptocurrencies work? - BBC NewsCryptocurrencies run on a distributed public ledger called blockchain, a record of all transactions updated and held by currency holders. A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Cryptocurrency (or �crypto�) is a digital currency, such as Bitcoin, that is used as an alternative payment method or speculative investment.