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 |
