Infographic：Cryptocurrency
【明報專訊】Can you answer these ?
→ What is money ?
→ What is the function of money ?
→ Who can issue currency ?
◆What is cryptocurrency?
There is a new form of currency called cryptocurrency (加密貨幣). Cryptocurrency means digital money. Popular examples of cryptocurrency is Bitcoin (比特幣). There is usually a central authority, like a central bank, that manages and maintains the value of the currency, but there is no central authority to monitor the supply of cryptocurrency.
More people are recognizing cryptocurrencies as the new medium of exchange, and the values of them have gone up tremendously in a few months.
◆How valuable is a bitcoin?
(See the picture)
．Value of 1 Bitcoin (USD)
．Up to March 2021, the value of 1 bitcoin is equivalent to almost US$ 50,000 (around HK$ 390,000)!
◆How big the crypto market?
Over US$ 2 billion in 2019. This number is estimated by the global accounting firm PwC. It is expected that the crypto market has continued to expand since 2019. However, the chairman, CEO and largest shareholder of Berkshire Hathaway Warren Buffett (巴菲特) doesn't like any cryptocurrencies. He's described them as a''mirage''(海市蜃樓) and a ''gambling device.''
■Think further
Do you think cryptocurrency would substitute conventional currencies and become the dominant currency in the future?
■Glossary
currency (n) 貨幣
central bank (n) 中央銀行
tremendously (adj) 極好地
substitute (v) 取代
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