Living in the 21st century, you have probably heard of the word ‘cryptocurrency,’ especially in the past couple of years, but not everyone who has heard of it knows what it is, how it functions and that some suffer from “crypto addiction”. In order to understand it, we must break the word ‘cryptocurrency’ into two. ‘Crypto’ is a word of Greek origin that means concealed or hidden; meanwhile, the currency is a medium of exchange for goods and services. So, in simpler words, cryptocurrency is digital money except, they aren’t associated or controlled by any government, which allows freedom in transactions. Another essential feature of cryptocurrency that has boosted its popularity is the safety of both identity and money as it uses ‘blockchain,’ a system that is decentralized and spread across many computers, which makes it much more secure than other types of currencies, which makes clients trust in it more.
Bitcoin was the first form of cryptocurrency and is still the one most widely used. It was started by an unknown person or group of people known as Satoshi Nakamoto in 2009. Even though it has been used for a long time, it has risen drastically in both popularity and value in recent years.
Many companies have created their own ‘tokens,’ which can be traded for goods or services offered by the company. CoinMarketCap.com notes that around 10.000 cryptocurrencies are publicly traded. On 18th August 2021, the total value of all cryptocurrencies was $1.9 trillion.
Cryptocurrencies appeal to people because most believe it is the currency of the future, and will soon be even more valuable. Some rely on and are impressed by the technology behind the cryptocurrency as it is safer and more securer than traditional payment methods.
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