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Author: Admin | 2025-04-28
What is Cryptocurrency?Chapter 1 – Introduction to CryptocurrenciesIn this part of the guide, we’re going to provide a basic overview of what cryptocurrencies are, why they exist, and how they work. We’re going to assume you know virtually nothing about cryptocurrencies and bitcoin.Here’s a look at what’s included in this chapter:What is Cryptocurrency? How cryptocurrency came to be and what the future may hold.What is Blockchain? How blockchain technology was created and why it has world-changing potential.What is Bitcoin? An overview of bitcoin, the world’s best-known and most popular cryptocurrency.How Are Bitcoin Prices Determined? Supply, demand, and the economics behind bitcoin prices.What are Altcoins? An overview of alternative cryptocurrencies, or altcoins, and why they’re important.What is Ethereum? An explanation of Ethereum, the world’s second largest cryptocurrency.Who is Satoshi Nakamoto? Everything we know about Satoshi Nakamoto – the mysterious, anonymous creator of bitcoin.Whether you’re a total beginner or an intermediate user, you’re about to get a crash course in the world of bitcoin and cryptocurrencies.What is Cryptocurrency?A “cryptocurrency” is a combination of two words, including “cryptography” and “currency”. We call them cryptocurrencies because they’re digital tokens that can transfer value – like currency – while also being cryptographically secured.Let’s break the word down into its two separate components:Cryptography comes from the Latin word kryptos, which means “to hide”. “Graphy”, meanwhile, comes from the word graphie in French and German, which refers to the process of writing. That means cryptography roughly translates to “the process of writing in a hidden way.”In ancient and medieval times, “crypts” were hidden beneath the ground to store things of value.Today, cryptography is an entire field of study. You can read textbooks on cryptography. You can devote your life to researching cryptography. You can get a degree in cryptography.Modern cryptography is more advanced than it’s ever been at any point in human history. Today, cryptography is the science of writing codes that can be decoded by someone with special access. Modern cryptography originated during World War II, when world powers depended on cryptography to keep radio signals safe. Radio signals could be intercepted by anyone with a receiver, but encrypted radio traffic was meaningless without a decryption key.CurrencyCurrency is a monetary token that can be used to store wealth or transfer value. You can hold your wealth in a currency like the US Dollar, for example, or buy a croissant in Paris using the Euro.As human society
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