Cryptocurrency is a form of online currency. Cryptocurrency is distributed over many computers and uses networks based on blockchain. Many forms of cryptocurrency are available for the public. Cryptocurrency can be purchased or mined. Cryptocurrencies such as Bitcoin are typically mined through software such as CGMiner, BFGMiner, and MultiMiner. Cryptocurrency mining software is often open-source and allows users to earn cryptocurrency by monitoring blockchain transactions. By monitoring these transactions, miners can mine cryptocurrency using specific algorithms to develop the correct code for cryptocurrency mining. Several forms of hardware are also used in the cryptocurrency mining industry. Application Specific Integrated Circuit Mining, Graphics Processing Unit Mining, and Field-Programmable Gate Arrays are examples of hardware used for cryptocurrency mining. Hardware can be used to process algorithms for solving the code for the blockchain. Cryptocurrency is not government regulated and is maintained through cryptography. Through this system, cryptocurrency can be used to make secure online payments. Cryptocurrency allows secure digital payment. 

The inventor of Bitcoin, the first form of cryptocurrency, is called the pseudonym Satoshi Nakamoto. The identity of Satoshi Nakamoto could belong to one or multiple Bitcoin creators. The Bitcoin Whitepaper includes the pronoun “we.” This has led people to believe that multiple people contributed to the invention of Bitcoin. It has been suspected that Dorian Nakamoto had been involved with the creation of Bitcoin because of his involvement in the field. However, Dorian Nakamoto denies being involved in the creation of Bitcoin. Many also believe Craig Wright to have participated in the creation of Bitcoin because of leaked tax transcripts, emails, and blog posts that relate to Bitcoin. However, there is insufficient evidence to prove Wright’s involvement in the development of Bitcoin. Additionally, it has been suggested that Nick Szabo created Bitcoin. Before Bitcoin’s creation, Szabo expressed ideas about decentralized currency. He also has a similar writing style to that of the Bitcoin Whitepaper author. However, the creator of Bitcoin remains unknown. 

Cryptocurrency offers several benefits to users. Many benefits of cryptocurrency relate to its quality of being based on a decentralized network. This eliminates the need for banks and other institutions to monitor the currency. This could be beneficial for cryptocurrency users in the case of bank failures. The lack of banks needed for cryptocurrency also benefits users as it allows faster and more direct transactions. Currency can be directly traded by two cryptocurrency users without the involvement of a bank. Another benefit of cryptocurrency is its ability to gain value. Cryptocurrency has exponentially gained value over time. This gives investors the opportunity to gain profit through cryptocurrency. 

There are also drawbacks to cryptocurrency. Cryptocurrency has fluctuated in value. While it is possible for cryptocurrency to increase in value, it is also possible for cryptocurrency to decrease in value. The instability in value of cryptocurrency is a drawback for cryptocurrency users. It is also possible for cryptocurrency wallets to be hacked. This has caused cryptocurrency wallet users to lose significant amounts of currency. Additionally, cryptocurrency requires extreme amounts of energy. The excessive amount of electricity needed to mine cryptocurrency is unsustainable and expensive. 

Cryptocurrency could impact society in many ways. Cryptocurrency could lead to decreased need for and use of banks. As cryptocurrency becomes more widely used, many people feel less of a need to use a bank account as cryptocurrency can be used digitally without government monitoring. Economic balance could also be promoted through cryptocurrency due to its decentralized nature. Cryptocurrency could be traded globally between many countries. This could influence economic equality between countries. Cryptocurrency could also become more widely used by small businesses and entrepreneurs because of its low transaction costs and ability to be exchanged globally. Widespread use of cryptocurrency could have a strong impact on society. 

Sources: 

Frankenfield, Jake. “Cryptocurrency Explained With Pros and Cons for Investment.” Investopedia, Investopedia, 31 Oct. 2022, https://www.investopedia.com/terms/c/cryptocurrency.asp#toc-understanding-cryptocurrencies.  

Kurko, Michael. “Best Bitcoin Mining Software.” Investopedia, Investopedia, https://www.investopedia.com/best-bitcoin-mining-software-5095403.  

Ramsey, Bradley. “The Impressive Hardware Used in Cryptocurrency Mining.” Medium, Supplyframe, 20 June 2018, https://medium.com/supplyframe-hardware/the-impressive-hardware-used-in-cryptocurrency-mining-31771edb857c.  

Sharma, Rakesh. “3 People Who Were Supposedly Bitcoin Founder Satoshi Nakamoto.” Investopedia, Investopedia, 8 July 2022, https://www.investopedia.com/tech/three-people-who-were-supposedly-bitcoin-founder-satoshi-nakamoto/.  

“What Is the Economic Impact of Cryptocurrency?” Pelicoin , Pelicoin , 11 Apr. 2022, https://www.pelicoin.com/blog/what-is-the-economic-impact-of-cryptocurrency.