Today's Topic: What is Cryptocurrency?
Cryptocurrency is a digital or virtual form of money that uses cryptography for security and operates on decentralized networks (usually blockchain). Unlike traditional money (fiat) issued by governments (e.g., USD, EUR), cryptocurrencies are not controlled by any central authority like a bank or government.
Key Features of Cryptocurrency:
1. Decentralization:
Most cryptocurrencies run on blockchain technology, a distributed ledger maintained by a network of computers (nodes) rather than a single entity.
No bank or government controls it, reducing censorship risk.
2. Security & Transparency:
Transactions are secured using cryptography (advanced math/encryption).
All transactions are recorded on a public ledger (blockchain), making them transparent and tamper-proof.
3. Digital & Borderless:
Crypto exists only in digital form and can be sent globally without intermediaries (like banks).
Enables fast, low-cost cross-border payments.
4. Limited Supply (For Many Cryptos):
Some, like Bitcoin (BTC), have a fixed supply (only 21 million will ever exist), making them deflationary.
