Cryptocurrency
| Cryptocurrency is a digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of this security feature. A defining feature of a cryptocurrency, and arguably its most endearing allure, is its organic nature; it is not issued by any central authority, rendering it theoretically immune to government interference or manipulation. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control. Bitcoin, the first and most well-known cryptocurrency, was created in 2009. Cryptocurrencies are often traded on decentralized exchanges and can also be used to purchase goods and services. Cryptocurrencies are often lauded for their anonymity. However, because they are decentralized and often traded on decentralized exchanges, they are not completely anonymous. Bitcoin, for example, is pseudonymous, meaning that while transactions are public, the identities of the parties involved are not. Cryptocurrencies have been subject to a number of scams and hacks, and their volatility makes them a risky investment. However, many people believe that cryptocurrencies are the future of money, and that they will eventually replace traditional fiat currencies. |
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