Cryptocurrency news can have a major impact on price movements. It’s important to follow the latest updates, even if you don’t have plans to invest in the space.
A cryptocurrency is a digital asset secured by cryptography and the blockchain technology that gives rise to Bitcoin. Unlike a traditional currency, such as the dollar or Euro, cryptocurrencies are not backed by a central bank and cannot be printed out in unlimited quantities. As a result, some see them as the future of money and others view them as speculative investments that could gain in value.
The price of cryptocurrencies has been volatile since they were created. Prices have soared and fallen rapidly, sometimes in response to a single tweet by Elon Musk. The market value of cryptocurrencies now exceeds $1.5 trillion, an extraordinary amount for virtual objects that are nothing more than computer code.
One of the reasons for these wild swings is that cryptocurrencies lack some features that are standard in financial products. For example, there are no consumer protections like chargebacks in the event of fraud, and cryptocurrency is not as widely accepted as credit cards.
Some retailers, from luxury jewelry stores to auto dealerships, now accept Bitcoin. And the insurance company Premier Shield now offers home and auto insurance policies that can be paid for with the virtual currency. But the appeal of cryptocurrency for illicit purposes is also growing. Cybercriminals use it for ransomware attacks on business networks and to launder drug money. And terrorist groups, such as the self-proclaimed Islamic State and the military wing of Hamas, have used it to evade economic sanctions.