Cryptocurrency

Cryptocurrency is a digital asset whose ledger is maintained collectively by a computer network rather than a central issuer. Bitcoin appeared in 2009, and thousands of others followed.

The difference from conventional money is who controls it. Central banks adjust the supply of national currencies, while Bitcoin's total is fixed at 21 million in code and cannot be increased at will.

Extreme price movement is its defining feature. Daily swings above 10% are unremarkable, and drawdowns of 70-80% from the peak have occurred several times — part of why it is hard to use as money.

What underpins the value is disputed. One side points to scarcity and the network itself; the other argues that with no cash flow, there is nothing to value.

If you invest, limiting it to money you can lose without disrupting your life is the practical stance. Risks unrelated to the asset itself — exchange failures, lost wallets — come attached.