Cryptocurrency

Cryptocurrency is a digital or virtual form of currency that uses cryptography for security. It operates on decentralized networks based on blockchain technology, which is a distributed ledger enforced by a network of computers (nodes). Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies are typically not controlled by a central authority, making them resistant to government interference or manipulation.

The most well-known cryptocurrency is Bitcoin, created in 2009, but thousands of alternative cryptocurrencies, collectively known as altcoins, exist. Cryptocurrencies can be used for a variety of purposes, including online transactions, investment, and as a means of transferring value across borders. They often offer features like anonymity, pseudonymity, and increased security compared to conventional financial systems. However, they are also associated with high volatility, regulatory challenges, and potential misuse, which raise concerns among regulators and investors alike.

Overall, cryptocurrencies represent a new and evolving frontier in digital finance, enabling peer-to-peer transactions and shifting paradigms in how value is stored and transferred.