Hello from MultiGenerational
What is a cryptocurrency?
Updated: Jun 27, 2022
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.
What is Money? is HERE
What is Investing? is HERE
What is The Investing Starter Kit? is HERE
Sign up for The Investing Starter Kit waitlist HERE.