By Ann Brown
In recent years, cryptocurrency has emerged as a revolutionary force in the world of finance, challenging traditional systems and offering a new way to store and transfer value.
More people are considering crypto as an alternative to government-issued money, attracted by its promise of decentralization, security, and transparency. But what exactly is cryptocurrency, and how does it work?
What Is Crypto?
Cryptocurrency is decentralized digital money. It is designed to be used over the internet. Unlike traditional currencies issued by governments, crypto isn’t controlled by any one central authority. Instead, it operates on blockchain technology—a secure, transparent digital ledger that records every transaction ever made with that currency, Nerd Wallet reported.
The most well-known cryptocurrency is Bitcoin, launched in 2008. Since then, thousands of digital coins have debuted, including Ethereum, Tether, and Solana.
Bitcoin was launched following the release of a white paper by the mysterious and pseudonymous Satoshi Nakamoto. Unlike traditional government-issued currencies, Bitcoin operates on a decentralized network, Coinbase reported.
Ethereum is a blockchain-based platform best known for its digital currency, Ether (ETH). According to CoinMarketCap, Ethereum is second only to Bitcoin in market value. Unlike Bitcoin, which is capped at 21 million coins, there is no maximum supply for Ether.
A blockchain is a decentralized, distributed public ledger that records transactions across multiple computers, making it nearly impossible to alter past records.
Good Time To Buy?
Experts say now is a good time to invest in Bitcoin, citing its close tie to mining costs and its long-term upside, The Motley Fools reported. Despite Bitcoin being down 25% from its January high, historical patterns show this kind of volatility is typical. Past rebounds and major investors doubling down suggest confidence in its future. Bitcoin, while volatile, has outperformed most other cryptocurrencies and is seen as relatively safer within the crypto space, Coin Desk reported.
How To Buy Crypto
To buy cryptocurrencies like Bitcoin or Ethereum, you first have to select a trading platform, such as Coinbase, Kraken, Bitstamp, Gemini, Binance, and Bitfinex. These all support Ethereum trading.
Investors can also purchase cryptocurrency through trading apps such as Cash App or via brokers. Another common method of crypto investing is through investment vehicles like Bitcoin trusts and Bitcoin ETFs.
Crypto Pros And Cons
Pro: With cyrpto, there is the potential for high returns. Despite market volatility, major cryptocurrencies like Bitcoin have delivered significant long-term gains, topping $100,000 for the first time in December 2024.
Pro: Decentralization is a plus. Crypto removes central banks from money supply management. Many people who are suspicious of big banks, find crypto attractive for this reason.
Pro: Crypto offers financial access. Crypto offers alternatives for underserved communities, who often don’t have access to financial markets or stable banking. A 2021 Pew Research study found Asian, Black, and Hispanic adults were more likely than white adults to adopt cryptocurrency.
Con: The crypto space can be volatile. Crypto prices can change dramatically.
Con: Blockchain-based systems have yet to achieve widespread adoption; future demand is uncertain.
Con: Bitcoin mining consumes significant energy—more than twice that of all U.S. residential lighting, according to a University of Cambridge study.
Con: It’s unregulated. Governments are still figuring out how to regulate cryptocurrency, which could lead to sudden market shifts.
Crypto And The Harlem Community
But crypto isn’t just about financial freedom—it’s about digital empowerment, especially in underserved communities, which has made it attractive to some in the Black community, especially those leery of the stock market. There are several groups dedicated to helping people of color become crypto investors, such as CryptoHarlem, a grassroots organization based in New York City’s historic Black neighborhood of Harlem.
Cryptography Harlem’s offerings include digital rights advocacy and harm prevention; internships and mentorship programs; and cybersecurity education for underrepresented groups, among other things.
CryptoHarlem hosts Twitch takeovers by Black women in cybersecurity, shares educational slides, and creates space for anyone—regardless of background—to learn, grow, and protect their community.
Ann Brown
Ann Brown, senior editor for Harlem World Magazine, is a seasoned journalist and editor with more than two decades of experience covering travel, lifestyle, business, and entertainment. Her work has appeared in leading media outlets including Black Enterprise, NewsBreak, Essence, MadameNoire.com, New York Trend, Upscale, AFKInsider, The Network Journal, Playboy, For Harriet, Pathfinders, Black Meetings & Tourism, Frequent Flier, Girl, Honey, Source Sports, The Source, Black Radio Exclusive, and Launch. A proud native New Yorker, she is passionate about exploring cultures and telling people’s stories. Ann studied journalism at New York University, where she earned her B.A.
Photo credit: Photo by Thought Catalog
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