Cryptocurrency, or crypto, refers to digital or virtual currencies that use cryptography for security and operate on decentralized networks, typically built on blockchain technology. Bitcoin, introduced in 2009, is the first and most well-known cryptocurrency. Others include Ethereum, Litecoin, and thousands more.
Key points:
Decentralization: No central authority; transactions are peer-to-peer and recorded on a public ledger (blockchain).
Volatility: Prices can fluctuate dramatically, offering potential for high returns or significant losses.
Use Cases: Beyond just a currency, crypto supports smart contracts, decentralized finance (DeFi), NFTs, and more.
Regulation: Varies by country; some embrace it, others are wary or have banned it.
Security: While blockchain itself is secure, exchanges and wallets can be targets for hacks. Personal security practices are crucial.
Crypto has sparked debates on future finance, privacy, and technology's role in society. It's an evolving field with potential for innovation but also comes with risks due to its regulatory landscape and market volatility.
