Cryptocurrencies are digital or virtual currencies that use cryptography to secure their transactions and control the creation of new units. Bitcoin, created in 2009 by Satoshi Nakamoto, was the first and most famous cryptocurrency. Cryptocurrencies are decentralized, meaning there is no central authority such as a bank or government.
They operate on blockchain technology, which is a distributed ledger where every transaction is recorded and verified by participants in the network. This ensures transparency and security of transactions. Unlike traditional currencies, cryptocurrencies do not have a physical embodiment and exist only in digital form.
Cryptocurrencies are growing in popularity due to their advantages, such as anonymity, low fees for international transfers, and the ability to bypass sanctions. However, they also face challenges, including high price volatility, the risk of cyber attacks, and insufficient legal regulation in many countries.
