F13: What is Cryptocurrency?

Simply stated, a cryptocurrency is a form of digital money. Not to be confused with when you transfer your traditional, non-cryptocurrency money like the U.S. dollar digitally, cryptocurrencies are a different thing altogether. However, just like your traditional money, if cryptocurrencies become mainstream, you may be able to use them to pay for things electronically. What sets cryptocurrencies apart is the blockchain technology behind them. But before getting into the nitty-gritty of cryptocurrencies, you need to understand the definition of money itself. Of course, in the old days, when you traded your chicken for shoes, the values of the exchanged materials were inherent to their nature. But when coins, cash, and credit cards came into play, the definition of money, and more importantly, the trust model of money changed. Despite recent events, many financial analysts expect cryptocurrency to recover and endure. But just like anything else in life, cryptocurrencies come with their own baggage of risk. Whether you trade cryptos, invest in them, or simply hold on to them for the future, you must assess and understand the risks beforehand.

Purpose: Learn about and better understand cryptocurrency

Facilitator: Gary Orten