What Is Cryptocurrency? A Guide

If you are anything like me then you have NO CLUE what cryptocurrency is! Hopefully, this post will help you understand it just a bit. 

What Is Cryptocurrency?

Cryptocurrency is any digital store of value that one can exchange for goods and services. Bitcoin is the oldest and most well-known example of a digital currency, invented by a person or persons using the pseudonym “Satoshi Nakamoto” in 2009.

What Is the Purpose of Cryptocurrency?

Cryptocurrency was initially conceived as a way of making international trade easier. Consumers in developing countries often lack consistent access to conventional fiat currency options such as U.S. Dollars or European Euros. So Bitcoin was proposed as a virtual currency and alternative form of payment versus traditional banking.

What Is Blockchain Technology?

All cryptocurrency transactions are recorded on a blockchain public ledger. These ledgers are known as decentralized networks. You can think of a blockchain similar to your account history on an online bank account. Transaction information gets stored in “blocks” that can be “chained” together to create a system with infinite memory, where the name originates.

Are Cryptocurrencies Safe?

Blockchain technology is often described as “hack-proof” because any hacker would need to modify all blocks simultaneously to ensure that the chain was in agreement. Volunteer “miners” verify each transaction, and they can trace every token through every account it’s been held in to ensure they are coming out of the correct wallets.

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