In a decade, cryptocurrencies have gone from digital novelties to trillion-dollar technologies. Their rapid growth has kept participants, observers and regulators on their toes. Join CNBC for crypto news, commentary, high-profile interviews and unique stories that you won’t find anywhere else.
Cryptocurrencies are digital assets that allow for peer-to-peer transactions without a central party, such as a bank. The first cryptocurrency, Bitcoin, was created in 2009 by an unknown individual or group known only by the pseudonym Satoshi Nakamoto. Since then, dozens of other cryptocurrencies have been launched, and they are collectively worth more than $1 trillion. These digital coins can be traded on exchanges and are used to buy a wide range of goods and services. The value of a cryptocurrency is determined by its supply and demand. The price of Bitcoin and many other cryptocurrencies fluctuates wildly.
Some cryptocurrencies are backed by traditional currencies, such as the U.S. dollar, earning them the name “stablecoin.” Others are designed to have a fixed price, such as $1 per coin, earning them the nickname “stablecoins.” The large volatility of cryptocurrencies makes them unsuitable as a means of payment, and surveys suggest that only a small fraction of cryptocurrency holders use them for this purpose.
Cybercriminals are using cryptocurrencies for illicit activities, including ransomware attacks on businesses and the use of digital wallets to purchase drugs on darknet markets. The global reach and anonymity of cryptocurrencies have also raised concerns about the potential for the exploitation of vulnerable people and the financing of terrorists, criminal gangs and rogue states.
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