Crypto, meaning cryptography OR the art of writing or solving codes AND currency, meaning a system of money OR in this case a digital asset.
So, what is a digital asset and why would anyone need it? More importantly in my case, how can I use it to make financial gains!
“It's money 2.0, a huge, huge, huge deal.” - Chamath Palihapitiya, venture capitalist
A digital asset works as a medium of exchange and in the case of cryptocurrency, it secures financial transactions with the use of strong cryptograpy.
A System of Control
Unlike central banking systems which use CENTRALIZED control systems, cryptocurrencies use DECENTRALIZED control systems. In the United States the FDIC is the institution that has authority to manage the currency, money supply, and interest rates. Cryptocurrency does not rely on a central authority. Control comes in the form of a type of distributed ledger known as a blockchain. The blockchain holds a record of transactions securely by using a cryptographic signature known as a hash(#blockchain, #hashrate). The security of cryptocurrency lies in this encryption.
After all that if you still don't know what cryptocurrency is, just think of it as digital coin or "token" that allows for secure online payment transactions without the need for a trusted third party such as a bank or credit card company. However, the really interesting part about crypto is that it can be traded similiar to the stocks in the stock market.
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