WEBVTT

00:00:00.000 --> 00:00:01.570 align:middle line:90%
[MUSIC PLAYING]

00:00:01.570 --> 00:00:03.730 align:middle line:84%
Cryptocurrency is
a digital currency

00:00:03.730 --> 00:00:06.460 align:middle line:90%
secured by cryptography.

00:00:06.460 --> 00:00:09.340 align:middle line:84%
They're almost impossible to
counterfeit or double spend.

00:00:09.340 --> 00:00:12.130 align:middle line:84%
And they're not issued
by any central authority,

00:00:12.130 --> 00:00:15.880 align:middle line:84%
making them immune to government
interference or manipulation.

00:00:15.880 --> 00:00:18.760 align:middle line:84%
Many cryptocurrencies run
on decentralized networks

00:00:18.760 --> 00:00:21.670 align:middle line:84%
based on blockchain
technology, a vital part

00:00:21.670 --> 00:00:23.770 align:middle line:90%
of cryptocurrencies.

00:00:23.770 --> 00:00:26.710 align:middle line:84%
Blockchain technology acts as
a distributed ledger enforced

00:00:26.710 --> 00:00:28.880 align:middle line:84%
by a disparate
network of computers,

00:00:28.880 --> 00:00:32.380 align:middle line:84%
which helps ensure the
legitimacy of each transaction.

00:00:32.380 --> 00:00:35.740 align:middle line:84%
Cryptocurrencies are denominated
in terms of virtual tokens

00:00:35.740 --> 00:00:39.760 align:middle line:84%
or coins, represented by
ledger entries into the system.

00:00:39.760 --> 00:00:42.790 align:middle line:84%
They can be bought and sold
on cryptocurrency exchanges

00:00:42.790 --> 00:00:45.940 align:middle line:84%
or mined through complex
computer processing.

00:00:45.940 --> 00:00:48.970 align:middle line:84%
Experts believe that blockchain
and related technology

00:00:48.970 --> 00:00:52.870 align:middle line:84%
will disrupt many industries,
like finance and law.

00:00:52.870 --> 00:00:56.770 align:middle line:84%
The first blockchain-based
cryptocurrency was Bitcoin.

00:00:56.770 --> 00:00:59.920 align:middle line:84%
Today, there are thousands of
alternate cryptocurrencies,

00:00:59.920 --> 00:01:02.920 align:middle line:84%
each with its own functions
and specifications.

00:01:02.920 --> 00:01:05.470 align:middle line:84%
Still, cryptocurrencies
face criticism

00:01:05.470 --> 00:01:07.630 align:middle line:84%
for a number of reasons,
including their use

00:01:07.630 --> 00:01:10.270 align:middle line:84%
in illegal activities,
volatility exchange

00:01:10.270 --> 00:01:12.790 align:middle line:84%
rates, and the vulnerability
of their underlying

00:01:12.790 --> 00:01:14.080 align:middle line:90%
infrastructure.

00:01:14.080 --> 00:01:17.380 align:middle line:84%
Bitcoin has itself experienced
rapid surges and collapses

00:01:17.380 --> 00:01:18.550 align:middle line:90%
in values.

00:01:18.550 --> 00:01:21.430 align:middle line:84%
Further, cryptocurrencies
are virtual and are not

00:01:21.430 --> 00:01:23.570 align:middle line:90%
stored on a central database.

00:01:23.570 --> 00:01:26.140 align:middle line:84%
This means they can be lost
if the hard drive they're

00:01:26.140 --> 00:01:28.660 align:middle line:84%
stored on is lost or
destroyed or if there's

00:01:28.660 --> 00:01:31.790 align:middle line:84%
no backup copy of the
private key or password.

00:01:31.790 --> 00:01:33.430 align:middle line:84%
There's no bank or
central authority

00:01:33.430 --> 00:01:34.420 align:middle line:90%
to retrieve it for you.

00:01:34.420 --> 00:01:36.100 align:middle line:84%
But cryptocurrencies
have also been

00:01:36.100 --> 00:01:37.780 align:middle line:90%
praised for their advantages.

00:01:37.780 --> 00:01:40.870 align:middle line:84%
They are portable, divisible,
resistant to inflation,

00:01:40.870 --> 00:01:42.520 align:middle line:90%
and transparent.

00:01:42.520 --> 00:01:44.800 align:middle line:84%
They also have the
potential to make it easier

00:01:44.800 --> 00:01:47.680 align:middle line:84%
to transfer funds directly
between two parties

00:01:47.680 --> 00:01:50.172 align:middle line:84%
without the need for a trusted
third party like a bank

00:01:50.172 --> 00:01:51.130 align:middle line:90%
or credit card company.

00:01:51.130 --> 00:01:54.180 align:middle line:90%
[MUSIC PLAYING]

00:01:54.180 --> 00:01:56.000 align:middle line:90%