The Time Has Come

I have been investing and reading about crypto currency since 2014. Yet, I know nothing. I know a little bit, sure, but when I talk about it I feel weird. I feel weird because I can feel I don't truly understand what it is. So in this series, I will try to understand what a crypto currency is, a blockchain, mining, just in general, how it works.

To show you how I would react if a person asked me; "Jeppe, what is and how does Bitcoin actually work"

I would react like Ron Burgundy was asked what divirsity is..

What Is A Crypto Currency?

Well if we take a look at what wikipedia says, you will find this..

A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.[1] Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies.

Come at me @cheetah!

Well for me. This dosn't make much sense. It might be because English is not my native language, or that I'm an idiot. I am likely to believe both.

For me, and hopefully for many others, I need a more simple explanation.

I will try, but please correct me if i'm wrong!

Crypto - Currency. Lets break that down. We all know what currency is, but when we add crypto it gets trickier. A cryptocurrency is digital decentralized currency. So a digital currency that is not controlled by a goverment for example. It is simply a digital currency that is not controlled or govern by anyone.

How does it work then?

No idea...Hopefully I will figure it out..

Thanks for reading

Thanks for this @papa-pepper!

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sireland (43) 7 years ago (edited)

Love the ron burgundy clip! Start with comparisons. I'll use US Dollars (USD)/Bitcoin (BTC)
Media = Paper/Digital
Supply = Gov/Science
Person 2 Person transfer = Physical/Computers
transfer processing = Banks/Miners
processing payments = Bank fees/Bitcoin
Value = Confidence/Confidence
Security = Physical/Crypto (ever increasing encryption, aka blockchain)
Policy = Government/Transparent Science

There's probably many more comparisons to be made but basically if you trust governments and the people that run them then stick with fiat currency (paper money). I trust scientific code that is public.

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