Cryptocurrency

A cryptocurrency (colloquially crypto) is a digital currency designed to work through a computer network that is not reliant on any central authority, such as a government or bank, to uphold or maintain it.[1] However, a type of cryptocurrency called a stablecoin may rely upon government action or legislation to require that a stable value be upheld and maintained.[2]

Individual coin ownership records are stored in a digital ledger or blockchain, which is a computerized database that uses a consensus mechanism to secure transaction records, control the creation of additional coins, and verify the transfer of coin ownership.[4][5][6] The two most common consensus mechanisms are proof of work and proof of stake.[7] Despite the name, which has come to describe many of the fungible blockchain tokens that have been created, cryptocurrencies are not considered to be currencies in the traditional sense, and varying legal treatments have been applied to them in various jurisdictions, including classification as commodities, securities, and currencies. Cryptocurrencies are generally viewed as a distinct asset class in practice.[8][9][10]

The first cryptocurrency was bitcoin, which was first released as open-source software in 2009. As of June 2023, there were more than 25,000 other cryptocurrencies in the marketplace, of which more than 40 had a market capitalization exceeding $1 billion.[11] As of April 2025, the cryptocurrency market capitalization was already estimated at $2.76 trillion.[12]

  1. ^ Milutinović, Monia (2018). "Cryptocurrency". Ekonomika. 64 (1): 105–122. doi:10.5937/ekonomika1801105M. ISSN 0350-137X. Archived from the original on 16 April 2022. Retrieved 18 April 2022.
  2. ^ Hartill, Robin. “Why you might one day use stablecoins in place of credit cards or bank accounts”, Yahoo Finance (July 26, 2025).
  3. ^ Pagliery, Jose (2014). Bitcoin: And the Future of Money. Triumph Books. ISBN 978-1629370361. Archived from the original on 21 January 2018. Retrieved 20 January 2018.
  4. ^ Andy Greenberg (20 April 2011). "Crypto Currency". Forbes. Archived from the original on 31 August 2014. Retrieved 8 August 2014.
  5. ^ Polansek, Tom (2 May 2016). "CME, ICE prepare pricing data that could boost bitcoin". Reuters. Archived from the original on 23 April 2022. Retrieved 3 May 2016.
  6. ^ Pernice, Ingolf G. A.; Scott, Brett (20 May 2021). "Cryptocurrency". Internet Policy Review. 10 (2). doi:10.14763/2021.2.1561. hdl:10419/235962. ISSN 2197-6775. Archived from the original on 23 October 2021. Retrieved 23 October 2021.
  7. ^ Nicolini, Gianni; Intini, Silvia (16 August 2023). The Cryptocurrency Phenomenon. Abingdon, Oxon New York, NY: Taylor & Francis. p. 53. ISBN 978-1-000-92384-1.
  8. ^ "Bitcoin not a currency says Japan government". BBC News. 7 March 2014. Archived from the original on 25 January 2022. Retrieved 25 January 2022.
  9. ^ "Is it a currency? A commodity? Bitcoin has an identity crisis". Reuters. 3 March 2020. Archived from the original on 25 January 2022. Retrieved 25 January 2022.
  10. ^ Brown, Aaron (7 November 2017). "Are Cryptocurrencies an Asset Class? Yes and No". www.bloomberg.com. Archived from the original on 1 April 2022. Retrieved 25 January 2022.
  11. ^ "Cryptocurrencies: What Are They?". Schwab Brokerage. Archived from the original on 14 September 2023. Retrieved 14 September 2023. However, as of June 2023, there were more than 25,000 digital currencies in the marketplace, of which more than 40 had a market capitalization exceeding $1 billion
  12. ^ "Cryptocurrency prices today by market cap". www.forbes.com. Retrieved 18 April 2025.
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