What is cryptocurrency? Eliminate the confusion of digital currency
STRAIT (FOX 2) – Cryptocurrency is often described like this: everything we don’t know about money combined with everything we don’t know about computers.
And if you’re even more confused, well, we’ll try to clear things up a bit.
What is cryptocurrency?
Simply put, cryptocurrency is a digital asset that is traded through a blockchain (more on this below).
“What that means is we’re talking about digital currency, digital currency, and it’s peer-to-peer. There is no third party, there is no middleman, there is there is no bank, there is no brokerage firm, it is direct from the consumer to the consumers, ”said cyber expert David Derigiotis.
So what can you buy with cryptocurrency? You can buy stuff like coffee and now even cars.
“The biggest announcement recently this year was Elon Musk’s Tesla, his organization, Tesla invested in Bitcoin and they now allow their customers to buy Teslas with Bitcoin,” Derigiotis said.
We’ll get to that in a minute. But first, Bitcoin is the biggest and most popular cryptocurrency on the market. Now keep in mind that even if you don’t buy anything like this Tesla, cryptocurrency investors look at it as if they would with precious metals.
“You could accept a fraction of a Bitcoin if you had to sell coffee for example and tomorrow the value of that Bitcoin could have tripled. So it’s a very interesting asset, cryptocurrency, with which not to pay because a lot of people use it as a store of value like gold or silver. They buy it and they hang on to it because the value has increased over time, “Derigiotis said.
So who is monitoring it? There is no treasury department that monitors securities and transactions. This is where the blockchain comes in.
Unlike a safe in a bank, you can’t see it the same way with your bare eyes. You can’t touch it. It is a network that essentially manages money through computer algorithms. Everything is digital.
Each block contains an actual digital transaction that cannot be changed or tampered with. Think about each block as you build the last, each with their own fingerprint.
Every time someone buys or sells something, like more cryptocurrency, the blockchain counts each transaction just like your bank would. It is a digital register.
Unlike the change in your pocket or the dollars in your wallet, you cannot see or touch the coin.
“Everything is digital, and this is the concern we can have with this type of currency, you have to store it properly, you have to protect it, we are not talking about physical coins, physical money, everything is online, it’s basically digital money, that’s what it is, ”said Derigiotis.
What types of cryptocurrency are there?
All kinds. As a joke, two guys launched a currency they called Dogecoin, named after a popular meme. It was a joke – and now they are the ones laughing as it is the fifth largest cryptocurrency by market cap. But even then, most crypto investors are holding with no intention of selling.
“Because it’s a long-term game, there is talk of bitcoin going up to $ 200, $ 300, $ 500,000 per bitcoin and I’ve heard numbers even much higher than that, so the possibility of investing maybe $ 60,000 for a bitcoin and become half a billion dollars is what a lot of people are turning to, now there’s no guarantee that will ever happen, ”Derigiotis said.
How to buy cryptocurrency?
There are countless websites to do this, where you use real money to buy digital currency with your credit card.
Next Friday at 10 p.m., FOX 2 will take a look at how to buy cryptocurrency. We’ll go through the steps and find out why people buy pictures and artwork online using cryptocurrency.