Once dismissed as a fringe interest of tech evangelists, cryptocurrencies like Bitcoin have surged to mainstream popularity and trillion dollar valuations. But this fast-moving and volatile industry keeps participants, observers, and regulators on their toes. Get the latest cryptocurrency news and insights into digital currencies, from Bitcoin to Ethereum and XRP. Plus, high-profile interviews and explainers on the industry that continues to change our world.
Cryptocurrencies are a system of digital tokens that can be used to make payments in online marketplaces. They gain value by a process called mining, which rewards people with new tokens for solving complex algorithms. They are different from traditional currencies, which derive their value from a government’s authority and legitimacy.
Proponents say cryptocurrencies offer a number of advantages over conventional money. For example, they can be sent across borders quickly and anonymously. They also can help counteract the effects of inflation by providing a store of value that can buy a basket of goods at a fixed price. However, volatility in prices and a lack of regulation can make cryptocurrencies speculative investments and raise concerns about financial stability and consumer protection.
As the industry grows, many central banks are exploring the idea of launching their own CBDCs, or central bank digital currencies. These are digital versions of their national currencies that can be transferred instantly to anyone in the world and whose value is counted as part of a country’s official currency circulation figures.