A digital currency is basically a form of electronic money that is an alternative to the normal paper currencies that National Governments use, which are commonly known as fiat currencies, because they are backed by Government guarantee (like a decree). Digital currencies are not backed by Governments or part of the Banking system, but that in many ways is part of their strength and long term potential. Digital currencies are not the same as currencies in ‘virtual economies‘ that are used by gamers to pay for virtual goods.
There have been many ‘alt coins’ that have sprung up since Bitcoin first came to prominence. Some have been worthy projects, and the small slection of alt coins shown above were the ones we were considering supporting in Bittunes. There are literally hundreds of other alt coins in existence now, but we feel that many will have little or no lasting significance or value at all. Further, we feel that the proliferation of these alt currencies is a worrying trend, and this has become more and more clear through 2013 and 2014.
Why we will use Bitcoin as the primary operational currency
Originally it was our goal that Bittunes would be digital currency agnostic, meaning that we would support multiple alt currencies, but we now feel that the interests of our users will be best served by using Bitcoin as the primary operational currency in Bittunes, and we see no need to use any other.