Let’s get back to basics and discuss crypto in the simplest terms. So what is cryptocurrency? It’s currency in the form of a digital file. If you’re wondering how a digital file can be worth anything, check out our article on strange currencies. The short of it: Anything can have value if we assign it value.
Why was cryptocurrency created?
Cryptocurrency was envisioned by a group of individuals called cypherpunks who opposed government-controlled currency. To address this issue, crypto is decentralized and isn’t affiliated with a government.
How are cryptocurrency transactions tracked?
All cryptocurrency is logged on the blockchain, a public ledger whose purpose is to mimic a physical ledger where you record transactions. While the blockchain is public, your name is not attached to transactions recorded there. That’s part of the appeal of crypto: It offers more privacy than typical currency while being transparent due to its public nature.
What are types of popular cryptocurrencies?
You’re probably familiar with Bitcoin, the most-traded cryptocurrency. Other cryptocurrencies making their mark include Ethereum, Litecoin, Cardano, Polkadot, and Bitcoin Cash, which resulted from a split in Bitcoin. There are currently over 1,650 cryptocurrencies and more are being created every month. Just a few short years ago Bitcoin was the only one.
What can I buy with cryptocurrency?
You can buy a Lamborghini and anything from Overstock for starters. You can also buy coffee at some coffee shops and wares from Etsy vendors accepting Bitcoin.
Learn more about crypto purchasing power here. Of note: This list will only grow as Bitcoin continues to gain acceptance.
Can cryptocurrency be converted into cash?
It sure can. In fact, that’s a specialty of ours. Go to one of our Bitcoin ATMs and convert Bitcoin into cold, hard cash or cash into Bitcoin!
What is cryptocurrency mining?
Think of crypto mining as gold mining without physical labor. Instead, crypto miners work on their computers, verify the transactions and, in turn, receive an award in crypto tokens.
What other crypto questions do you have?
Ask us in the comments!