What is cryptocurrency?By Randell Tiongson on July 24th, 2021
If you have not yet heard of Bitcoins or Cryptocurrencies, you may have been stucked somewhere where there is no access to the internet in the last three or so years. Albeit cryptos are still in the a relative infantile stage, it has entered the main stream of consciousness by so many and it is now a multi-billion industry.
So what is cryptocurrency? Wikipedia says “A cryptocurrency, crypto-currency, or crypto is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of a computerized database using strong cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. Cryptocurrency does not exist in physical form (like paper money) and is typically not issued by a central authority. Cryptocurrencies typically use decentralized control as opposed to a central bank digital currency (CBDC). When a cryptocurrency is minted or created prior to issuance or issued by a single issuer, it is generally considered centralized. When implemented with decentralized control, each cryptocurrency works through distributed ledger technology, typically a blockchain, that serves as a public financial transaction database. Bitcoin, first released as open-source software in 2009, is the first decentralized cryptocurrency. Since the release of bitcoin, many other cryptocurrencies have been created.”
Investopedia.com has a more in-depth definition about cryptos and you can read it HERE
Should you be investing in cryptocurrencies? Well the answer is yes and no. Yes if you believe that blockchains and the whole crypto ideas is the future and you have some extra funds that you are willing to lock in for at least a few years as I said earlier that the whole crypto scene is still relatively in the infantile stage. No if you are not sure about the future of blockchains and crypto and you are not used to wild volatilities in your investments — increase and decrease of 50 to 80% (or more) are not entirely uncommon in the crypto world. If you think you are ready, I highly recommend you study further.
One of the best videos I watched that will make you understand Cryptos better is from a guy named Arun on his Youtube channel:
I also recorded 2 videos about Crypto investing with TAP founder and Crypto advocate Tony Herbosa:
You may watch my in-depth discussions on personal finance at my Youtube channel. Please subscribe to my channel by clicking HERE.