whatiscryptocurrency

Cryptocurrency is a form of digital currency that operates through a system known as blockchain technology. One of the most frequently discussed cryptocurrencies is Bitcoin, which was first introduced by Satoshi Nakamoto in 2008 (Lee et al., 2018). The main advantage of cryptocurrency lies in its decentralized nature. This means that transactions are not controlled by a single entity, but instead are managed by a large network of participants known as miners, who use their computing power to maintain and secure the network.

Cryptocurrency can be considered a derivative of digital currency, but it has recently become a significant and influential part of the digital financial ecosystem. Although cryptocurrencies use cryptographic technology similar to other digital currencies, they often employ different algorithmic designs.

The idea of a cryptography-based payment system was first proposed by David Chaum from the University of California, who introduced a product called DigiCash that aimed to protect the confidentiality of its users’ data. One of the major advantages of cryptocurrency is that it can be sent anywhere via the internet without the need to go through a bank, resulting in lower transaction costs (Syamsiah, 2017). However, cryptocurrencies also have several disadvantages that must be considered.
For example, cryptocurrency prices are highly volatile and do not behave like traditional currencies (Minutolo et al., 2022). Despite this limitation, many large multinational companies, such as Microsoft, PayPal, Overstock, Whole Foods, and Starbucks, have accepted Bitcoin as a payment method. Other companies, including Tesla and Square, have also taken positions in cryptocurrency. This trend indicates strong potential for mass adoption in the future.

During the COVID-19 pandemic, cryptocurrency became increasingly popular. This was partly because many people were required to stay at home, even for work-related activities. However, to meet their daily needs, people still had to find ways to earn income. In this context, cryptocurrency emerged as one possible alternative source of income during strict lockdown periods.

Minutolo et al. (2022) found that several studies indicate cryptocurrency prices react to changes in market conditions and economic fundamentals in the short term. However, cryptocurrency values tend to be more strongly influenced by economic fundamentals than by market conditions, which contributes to their high volatility. From an investment perspective, simply including Bitcoin in a portfolio can improve the overall risk–return trade-off.
Furthermore, Bezhovski et al. (2021) reported that, by transaction volume, the most widely used payment methods in e-commerce are digital wallets (41.8%), followed by bank cards (debit or credit) at 39.8%, bank transfers at 9%, and cash payments at 4.5%. These figures may vary depending on the country or region.
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#Introduction
La criptovaluta è evoluta da una curiosità digitale di nicchia a una rivoluzione finanziaria globale. Per gli utenti di Binance, stare avanti significa non solo fare trading in modo intelligente, ma anche comprendere la tecnologia, le tendenze e le strategie che plasmano lo spazio crypto.
#Whatiscryptocurrency 💴
La criptovaluta è una valuta digitale o virtuale protetta dalla crittografia, rendendola quasi impossibile da contraffare o spendere due volte. Bitcoin, lanciato nel 2009, è stato il primo, ma ora esistono migliaia di criptovalute, ciascuna con casi d'uso e comunità uniche.