What Is Cryptocurrency | Investor's Almanac

Cryptocurrency is a digital currency designed to work through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it. It uses a digital ledger or blockchain to store individual coin ownership records, and a consensus mechanism like proof of work or proof of stake to secure transaction records. Cryptocurrencies are not considered traditional currencies and have varying legal treatments in different jurisdictions. The use of cryptocurrency is becoming increasingly popular, with many companies, such as PayPal and Coinbase, offering services related to cryptocurrency transactions. Additionally, Facebook and JPMorgan are exploring the use of blockchain technology and cryptocurrency in their businesses.