Do you find crypto terms hard to understand?
If your answer is yes, then this series is for you. Crypto Terminology: A to Z helps you decipher the alphabet soup of crypto terms and definitions, arranged in 26 bite-sized portions for you to chew on easily.
Today, we explore words that begin with the letter C.
First up? CBDC.
From the coronavirus pandemic to the historic oil market collapse, in less than a year, traditional investors have been forced to deal with a decade’s worth of panic and volatility. Shockwaves aside, history might also remember 2020 as the year CBDC came into the global spotlight.
CBDC, which stands for “Central Bank Digital Currency”, uses a blockchain-based token and exists pretty much like a digital version of cash. From global giants like China to smaller economies like the Bahamas, many central banks across the globe have been looking to adopt these digital fiat currency through either pilot programs or research programs aimed at determining a CBDC’s viability and usability.
With added efficiencies and lower costs, proponents of CBDC believe this could be the future of payments.
Read more: CBDC Becomes A Reality
A CBDC is operated by a country’s monetary authority or central bank. In other words, these regulated cryptocurrencies are centralized.
Think about your everyday systems. Whether it’s a bank account or trading platform, a centralized exchange refers to the use of a third party (or “middle man”) to help manage transactions.
At Bybit, we believe that running a centralized exchange is more than just about having good products and services. Trust is key in ensuring the safe completion of each transaction.
So now that we know CBDCs are centralized, make a guess — what lies on the opposite end of the spectrum?
You guessed it — Cryptocurrency.
Capping a blockbuster year in the cryptocurrency markets, the world’s largest cryptocurrency, Bitcoin, broke past the $24,000 mark for the first time on Dec. 19, 2020 and hit an ATH of $24,365 on Dec. 20. Standing on the shoulders of the Bitcoin boom, Ether grew in tandem, almost reaching the $700 yearly-high.
With Bitcoin prices soaring by 500% since its 2020-low back in March, the big question remains: How much more upside is there for Bitcoin?
With 2021 very much in sight, how high do you think cryptocurrency can fly?