Bitcoin and Cryptocurrency

What Is Cryptocurrency?

Cryptocurrency is digital money that exists online instead of as cash. It uses cryptography to keep transactions secure. This digital money runs on blockchain technology, which is a shared record that tracks and confirms transactions. Because of this, cryptocurrency exists as a result of the blockchain.

Unlike traditional money issued by banks or governments, most cryptocurrencies are not controlled by any single authority. Instead, they run on decentralized blockchain networks, where transactions are recorded on a shared, tamper-resistant ledger that anyone can view and verify.

The result:

• Secure: Transactions are encrypted and verified by a network, not one authority.

• Transparent: Anyone can view blockchain records, promoting trust.

• Borderless: Cryptocurrencies can be sent anywhere in the world, instantly.

• Programmable: Developers can build smart contracts, decentralized finance (DeFi) tools and new digital systems on top of them.

Think of cryptocurrency as both money and software — a programmable financial system.

Bitcoin: The Beginning of Digital Money

Bitcoin (BTC), launched in 2009 by the pseudonymous creator Satoshi Nakamoto, was the first decentralized digital currency — and remains the most widely recognized.

Bitcoin’s innovation was to combine cryptography, distributed computing and economic incentives to solve the double-spending problem — proving that digital value can exist and move without a central authority.

Key features of Bitcoin include:

• A fixed supply of 21 million coins — preventing inflation.

• A peer-to-peer network — no banks, no middlemen.

• Mining — the process by which participants verify transactions and secure the network.

• Open-source code — meaning anyone can inspect or build upon it.

Bitcoin started as an experiment. Today, it is a global asset class, payment network and foundation for thousands of other blockchain projects.

Why It Matters to South Carolina

Cryptocurrency is not just a financial innovation — it is an economic opportunity.

South Carolina can attract companies working in:

• Digital asset infrastructure — like mining, validation and data center development.

• Fintech innovation — including blockchain-based payments, custody and compliance solutions.

• Energy optimization — since many blockchain operations are investing in renewable or waste-to-energy solutions.

• Education and workforce training — to prepare students and professionals for a digital-first economy.

With smart regulation, South Carolina could become a national hub for digital asset innovation and responsible blockchain growth.

Beyond Bitcoin: The Wider

While Bitcoin remains the foundation, thousands of digital assets now exist — powering new use cases such as:

• Ethereum (ETH): Enables smart contracts and decentralized apps (DApps).

• Stablecoins: Cryptocurrencies pegged to the U.S. dollar to reduce volatility.

• Non-Fungible Tokens (NFTs): Digital collectibles that represent unique ownership.

• DeFi (Decentralized Finance): Peer-to-peer financial services built on blockchain networks.

• Central Bank Digital Currencies (CBDCs): Government-issued digital money, now being tested worldwide.

Each of these developments presents policy, infrastructure and education opportunities for South Carolina to explore responsibly.

The Challenges

As with any new technology, cryptocurrency brings both promise and risk:

• Market volatility and speculation can deter newcomers.

• Fraud and scams exploit those unfamiliar with crypto basics.

• Energy consumption and environmental impact need responsible solutions.

• Policy uncertainty can slow adoption and investment.

  
  

That is why SCETA advocates for balanced regulation and public education — ensuring innovation grows alongside protection for consumers and communities.

Innovation and responsibility must evolve together.

In Summary

Cryptocurrency represents a new financial era — one that blends technology, transparency and global access. By embracing it wisely, South Carolina can create new jobs, attract investment and lead the way in shaping the future of money.

Learn. Adapt. Lead.

Join SCETA to help shape policy, education and opportunity in South Carolina’s digital economy.