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Cryptocurrency: What it is and how it works

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Summary
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72% Informative

Cryptocurrency is a kind of digital currency that is intended to act as a medium of exchange.

It appeals because of its potential ability to hold value and not be inflated away by central banks that want to print money.

Bitcoin and other cryptocurrencies saw significant declines as the Federal Reserve raised interest rates in 2022 , impacting speculative investments particularly hard.

Speculators drive the prices of these coins back and forth, hoping to make a profit from others trading in and out of the assets.

For many, that’s the real use case for cryptocurrencies.

But some drawbacks do make Bitcoin and other currencies virtually useless as a currency, a means of exchange.

Cryptocurrency is subject to government regulation, which may hurt the prospects of some digital currencies.

Government regulation may help create a more level playing field that’s less subject to fraud and malfeasance.

Investors are probably best advised to take a cautious approach with cryptocurrency, given its volatility.

VR Score

67

Informative language

60

Neutral language

48

Article tone

informal

Language

English

Language complexity

54

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

long-living

External references

26

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