Bitcoin Plummets: What You Need to Know
**Understanding the Recent Bitcoin Drop** Bitcoin has experienced a staggering decline of nearly 15% over just a few days, leading to a sweeping liquidation of more than $2.4 billion in…
Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. It operates on decentralized technology, typically a blockchain, which is a distributed ledger enforced by a network of computers (often referred to as nodes). Unlike traditional currencies issued by governments (fiat money), cryptocurrencies are generally not controlled by any central authority, making them immune to government interference or manipulation.
Cryptocurrencies enable secure, peer-to-peer transactions over the internet and can be used for a variety of purposes, including online purchases, investment, and as a means of transferring value across borders. The most well-known cryptocurrency is Bitcoin, but there are thousands of others, including Ethereum, Litecoin, and Ripple, each with its own unique features and use cases.
The decentralized nature of cryptocurrencies allows for increased transparency and security, but it also poses challenges such as price volatility, regulatory scrutiny, and concerns over privacy and fraud. Cryptocurrencies can be obtained through mining or purchased via exchanges, and they are stored in digital wallets.
**Understanding the Recent Bitcoin Drop** Bitcoin has experienced a staggering decline of nearly 15% over just a few days, leading to a sweeping liquidation of more than $2.4 billion in…