Despite volatile price swings and cybersecurity concerns, digital currencies are taking the world by storm. Get all the latest cryptocurrency news and updates, along with expert analysis and high-profile interviews.
Cryptocurrencies use advanced encryption to mint virtual coins that are exchanged on decentralized computer networks among people with virtual wallets and recorded publicly on distributed, tamper-proof ledgers known as blockchains. The most popular, Bitcoin, was launched in 2009 by the pseudonymous Satoshi Nakamoto and has climbed to a market value of more than $1 trillion, dwarfing traditional currencies like the US dollar. Cryptocurrency advocates say they can be used anywhere in the world to buy goods and services without being subject to bank regulations or currency controls.
But critics point out that cryptocurrencies empower criminals and terrorist groups, can fuel inequality, suffer from dramatic market volatility, and require vast amounts of energy to mine. They also point out that investors have fewer protections than they would in more traditional financial investments, and the failure of several crypto firms has resulted in billions in investor losses.
Governments are grappling with how to regulate cryptocurrencies. Some, including the United States, have imposed restrictions on trading and ICOs. Others have begun to explore ways to encourage the industry and protect consumers. Crypto enthusiasts hope that new developments will make cryptocurrencies safer and more widely accepted as legitimate payment methods. Others question whether the industry can scale and if it will be able to compete with more established global payments systems.