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Cryptocurrency

Digital money that works without banks or central control

3 quiz questions

Cryptocurrency

Money started as a way to keep track of value.

A long time ago, people traded things directly, like sheep for clothes or grain for tools. But that kind of barter got complicated. What if the other person didn't want what you had? So people invented money — something everyone could agree on and use to trade more easily.

With time, money evolved: there were shells, metal coins, paper bills, and now, most of it lives as numbers in bank accounts. But the basic idea stayed the same: money works because we agree it has value.

But that trust doesn't work the same for everyone. Banks charge fees, set rules, and can delay or block access. Some people can't even open a bank account. And when financial systems fail, like during the 2008 crisis, millions of people can lose savings, jobs, or trust in the system altogether.

This is where cryptocurrency comes in.

The first cryptocurrency, Bitcoin, was launched in 2009 by a mysterious figure or group known as Satoshi Nakamoto. It appeared just after the financial crash and introduced a bold idea: digital money that wasn't controlled by any government or institution.

Since then, many other cryptocurrencies have emerged. Some, like Ethereum, go beyond money. They let people build apps, games, and tools that live on the blockchain and run automatically.

Instead of banks keeping private records, cryptocurrencies use blockchains — public digital ledgers. Once something's written down, it can't be changed or erased. And because thousands of computers around the world confirm each update, no single person or company is in charge.

To use cryptocurrency, you don't need a bank account. You just need a wallet — an app that stores your crypto and proves what belongs to you. From there, you can send money to anyone, anywhere, at any time.

People now use cryptocurrency for:

Sending money across borders with fewer delays and lower fees ("gas fees")
Saving money in places where local currencies lose value quickly
Getting paid for online work, even without access to traditional banks
Joining digital communities where tokens are used to fund, vote on, or build things together

In countries with unstable economies or strict financial controls, many people use stablecoins — cryptocurrencies tied to something like the US dollar — to protect their savings, make everyday purchases, or send money to family.

What makes cryptocurrency different is control. With crypto, you hold your money. No one can freeze it, block it, or take it away — but holding it also comes with its own set of responsibilities.

Additional Resources

Ethereum.org — What is Ether and how it worksCoinbase — What is a stablecoin?Bankless — Crypto, DeFi, and the future of money