Emerging Technologies
Cryptocurrency
Definition
A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend. Many cryptocurrencies are decentralized networks based on blockchain technology.
Why It Matters
Cryptocurrencies represent a new form of money that is not controlled by any central authority like a government or bank. They offer the potential for faster, cheaper global payments and a new asset class for investment.
Contextual Example
Bitcoin (BTC) is the first and most well-known cryptocurrency. Ethereum (ETH) is another major cryptocurrency, which also serves as a platform for decentralized applications.
Common Misunderstandings
- Cryptocurrencies are highly volatile assets, and their prices can fluctuate dramatically.
- The legal and regulatory status of cryptocurrencies varies widely by country.