Cryptocurrency - Page 19

Cryptocurrency is a type of digital or virtual currency that utilizes cryptography for security. It operates on decentralized technology known as blockchain, which is a distributed ledger that records all transactions across a network of computers. Cryptocurrencies are designed to work as a medium of exchange, allowing for peer-to-peer transactions without the need for a central authority, such as a bank or government. This decentralization aims to provide greater security and privacy compared to traditional currencies. Bitcoin, created in 2009, was the first cryptocurrency and remains the most well-known. Since then, thousands of alternative cryptocurrencies, often referred to as "altcoins," have been developed, each with unique features and use cases. Cryptocurrencies can be traded on various online platforms, and they can also be used for a wide range of applications, including online purchases, investments, and as a means of transferring value across borders. However, the value of cryptocurrencies can be highly volatile, and their regulatory status varies by jurisdiction.