The Cryptocurrency Phenomenon

WHAT IS IT?

Cryptocurrency is a digital currency used to buy goods and services through a decentralized network based on blockchain technology. Individual coin ownership records are stored in a ledger administered by a computerized database using cryptography to secure transaction records through a network of computers. A defining feature is that they are generally not issued by any central authority, rendering them theoretically immune to government interference or manipulation.

Advocates argue the advantages of cryptocurrency are:

  1. it is not controlled by any government’s central bank,
  2. a global virtual currency facilitates global commercial transactions,
  3. every Bitcoin transaction is recorded in a public ledger known as “blockchain,” and
  4. the payer and payee are anonymous, though recorded transactions are visible to anyone.

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