Everyone is talking about Bitcoin and cryptocurrency. It all seems so complicated. Is it money? is it currency is it just a piece of code that is hanging out on the internet? What is it? Really?!
MONEY MONEY MONEY MONEH…
Before jumping into the definition of crypto-anything, let’s first take a look at money, and traditional currency also is known, as fiat.
Money, or (for the sake of this post), fiat is a currency that the government has declared to be legal tender. Meaning the dollar bills, and coins in your wallet, the money stored in your bank account, and tied up in your investments, is all fiat.
IN CANADA, OUR CURRENCY OR FIAT MONEY IS THE CANADIAN DOLLAR.
We all use fiat every day. We use it to purchase our morning coffee, fill our vehicles with fuel, or invest in RRSPs, Mutual Funds or even the Stock Market if you’re so inclined.
PRETTY SIMPLE RIGHT?
Cryptocurrency isn’t very different. Simply put, cryptocurrency is just digital currency that is not tied to any single country’s economy. It’s an asset represented in digital form that has monetary characteristics. Cryptocurrency is stored in a digital wallet just like your cash, debit and credit cards are stored in your real life wallet.
There are many different currencies represented as digital cash, coins or tokens.
BITCOIN, LITECOIN, AND EOS OH MY!
There are a ridiculous amount of cryptocurrencies that are available online. Do you need to know about all of them? No, probably not at this point in your crypto-journey.
The fact that you made it through this article without falling asleep, or feeling the need to bash your head against a wall is a good thing. We’ll cover off on the types of crypto available in future posts.