ZUG, SWITZERLAND — Cryptocurrencies and related-crypto technology have become one of the hottest areas of investment and entrepreneurial activity over the last few years, with billions invested in the sector.

Crypto technology, sometimes called distributed ledger technology or blockchain, could potentially drive efficiencies in existing businesses and create new business opportunities by cutting out middlemen and decentralizing services. Many evangelists liken its game-changing potential to that of the internet.

Despite its decentralizing drive, development of the technology has tended to cluster around certain locations: Silicon Valley, New York, Malta, Gibraltar, Singapore, and Switzerland are all key hubs.

Switzerland is home to "Crypto Valley," a cluster of companies and foundations in the small town of Zug just outside of Zurich.

Business Insider travelled to Zug last week for the Crypto Valley Conference to find out how the hub developed, how significant it is, and why companies are choosing Switzerland. Here's what we found: