Crypto Kids: A Beginner's Guide to Cryptocurrency for Children - страница 3
It is important to remember that cryptocurrency is a complex topic and children should be aware of its risks and opportunities. You should not allow them to spend more money on it than they are willing to lose, and it is necessary to monitor their actions to avoid fraud.
In general, cryptocurrency is an innovative and unique form of currency that opens up new opportunities for people and businesses in the digital world.
Chapter 2. A brief history of cryptocurrency
Cryptocurrency is a new phenomenon in the world of finance, but its history began quite a long time ago. In 2009, the first and most famous cryptocurrency was created – bitcoin. Its creator, or creators, using the pseudonym Satoshi Nakamoto, developed a new kind of digital currency that did not depend on banks and governments.
Bitcoin was created as a response to the 2008 financial crisis, when banks and governments failed to prevent the collapse of the economy.
Since the creation of Bitcoin in 2009, cryptocurrencies have gradually begun to conquer the world. In the early years of Bitcoin’s existence, it was used mainly for trading on the Internet and among a small community of enthusiasts.
However, over time, interest in cryptocurrencies has increased, and new cryptocurrencies such as Ethereum, Ripple and Litecoin have appeared. Cryptocurrencies began to attract the attention of investors and entrepreneurs who saw in them the potential to create new businesses and to invest in the future.
Today, cryptocurrencies have become more accessible, and they can be purchased on specialized exchanges and platforms.
Some countries have even started using cryptocurrencies as an official means of payment.
However, cryptocurrencies still cause controversy and debate. Some people see them as an opportunity for a revolution in the financial system, while others consider them unstable and risky. Nevertheless, cryptocurrencies continue to develop and attract the attention of people from all over the world.
Chapter 3. How do Cryptocurrencies work?
Cryptocurrencies work using a technology called blockchain. Blockchain is a set of records that is stored on many computers around the world. Each record contains information about which transactions were made with cryptocurrency.
Imagine that you have a box of cubes. Each cube contains information about the transaction. When you want to send a cryptocurrency, you take one of the dice and add new information about the transaction. Then you close the cube and mail it to another person.