Hi all! If you saw this post on "What is Money?" you remember that I define MONEY as a store of value and a means of exchange created entirely by our collective belief in it.
A cryptocurrency is a form of money that isn't controlled by any one government. Instead, what allows a cryptocurrency to secure its value is something called 'block chain,' which, to be honest, I don't really understand.
[Edit: here is a great explanation of Blockchain from Black-owned bank One United:
“Blockchain Technology is the foundation of all crypto currencies. It is essentially a database, a list of immutable records linked by cryptography. This structure makes it hard to change, hack, or cheat the system.” Makes sense!]
What I DO understand is that cryptocurrencies are democratizing investing, but they are also very volatile--meaning the price or value moves up and down a LOT. This can lead to investing experiences that range from uncomfortable to devastating for the starting investor.
Here is a neat infographic flowchart that was created by The Skimm that I wanted to share with you all. Let me know what you think, in the comments!
And for me--I have some cryptocurrency that I'm just playing around with. I don't check my account very often, and I don't have very much money in it. I just wanted to see what all the fuss is about!
And as always, thanks for reading this.
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