How cryptocurrencies work – and how they do not

A no trespassing sign is seen near a coal-fired power station that also houses a cryptocurrency “mining” operation (Matthew Brown/AP)

The first and most popular cryptocurrency, bitcoin, launched more than a decade ago. Yet for all the relentless buzz, relatively few are well versed in cryptocurrencies or the blockchain, the technology on which they are built.

Despite the evangelising by and rising profile of some investors, a 2021 poll by Pew Research Center found that just 16% of Americans said they have ever invested in cryptocurrencies. That broadened to 31% between the ages of 18 and 29 and to 43% of men in that age range.