Cryptocurrency In 5 Minutes ｜ Cryptocurrency Explained ｜ What Is Cryptocurrency？ ｜

Added: 2026-06-02

[00:00:00]Meet Frank and Daniel. One day they decide to go for a trip to Venice. They made a budget list for all their expenses like residence, flight, etc. They thought of making their bookings online from a site that offered discounts to the first 10 visitors on that day. While making their respective flight bookings, Daniel's transaction failed and he missed the offer going on.

[00:00:21]On the other hand, Frank paid his share very quickly and easily and became one of the three lucky draw winners. Daniel was surprised and asked Frank how he could make the transaction when Daniel himself could not. To which his response was, "It's simple. I used Bitcoin, a type of cryptocurrency."

[00:00:40]Daniel was confused and he asked what cryptocurrency is and since when has it been in use? Frank stepped up and explained to him, "Cryptocurrency is a virtual or digital currency that works on blockchain technology and is designed to work as a medium of exchange online to buy goods and services and make payments, which was introduced to the world first in 2013 by Satoshi Nakamoto." Daniel felt that it sounds similar to other online payment options.

[00:01:07]He asked, "What makes it so different?"

[00:01:10]Frank explained, "Cryptocurrency is decentralized and free from any third party interference, which means it is not issued and controlled by any government or central authority, unlike other payment systems that banks or governments are handling. And that's why a cryptocurrency transaction never fails. There could be many reasons for why Daniel's transaction failed like he may have exceeded his transfer limit or his account must have been hacked or there could have been some technical issue with his bank server or maybe due to high transaction fees imposed by the bank. But on the other hand, cryptocurrency charges almost no or very low transaction cost. There is no limit for making transactions. In fact, you have 24/7 access to your money. There is no extra delay or extra charges on making international transactions. And the best part is that anybody can use cryptocurrency without the hassles of paperwork. All you need to do is create an account on any digital wallet of cryptocurrency. This is what makes cryptocurrency different from other online payment options. Daniel was impressed by cryptocurrency, but he wondered how it works without the control of an external authority. Upon research, he found out that cryptocurrency works on blockchain technology. Blockchain is a set of blocks that record information of transactions like who made the transaction to whom, the amount of trade in the form of a digital ledger that is distributed across the entire network.

[00:02:35]Meaning the data is replicated and stored on each node across the entire blockchain network making it more secure and impossible to change, hack or cheat the system. Then it is verified and validated by every node to proceed with the process of making the transactions.

[00:02:52]The crypto in cryptocurrency stands for cryptography which is a method of using encryption and decryption to secure the data in the presence of any third party with ulterior motives. Now Daniel was completely aware of the whole technology and concept behind cryptocurrency and was influenced by Frank to adopt cryptocurrency in his daily lifestyle too. He did that by booking his ticket, but sadly no discount. Like Daniel, cryptocurrency has influenced and impacted an enormous number of people worldwide. Due to this increasing popularity, new companies like Mu and PayPal are coming forward and investing in cryptocurrency every day. In 2018, Malta, an island located in the Mediterranean Sea south of Italy, was titled Blockchain Island as it led to the economic stability of the nation.

[00:03:40]Many fintech companies like Binance and OKX have already begun to take advantage of Malta's financial incentives and have moved their headquarters to the blockchain island. So here is a question for you. Which hashing algorithm does cryptocurrency use? A script B. EASH C.

[00:04:00]SHA 256 D none of the above. Please give it a thought and drop your answers in the comment section below. Three lucky winners will receive Amazon gift vouchers. Cryptocurrency is revolutionizing finance and banking around the world. Thanks to cryptocurrency, now anyone with an internet connection can trade, spend, and borrow money around the world. And nobody can stop them. People like Bill Gates, co-founder of Microsoft Corporation, and Elon Musk, CEO of Tesla, support cryptocurrency as it is much better and secure than physical money and also holds a great future for the world's economy. And on the other hand, some people think of cryptocurrency as a bane to the world's economy. Like Warren Buffett, CEO of Birkshshire Hathway and Aay Bangga, CEO of Global Mastercard, feel that cryptocurrency is a platform of criminal activities and will destroy the world's economy. Well, one thing is clear that this conflict is going to stay put for a little longer. We hope you enjoyed this video. If you did, a thumbs up would be really appreciated. Here's your reminder to subscribe to our channel and click on the bell icon for more on the latest technologies and trends. Thank you for watching and stay tuned for more from SimplyLearn.