What Is Cryptocurrency? Cryptocurrency Course (Part 1)

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What Is Cryptocurrency? Cryptocurrency Course (Part 1)

Alright with all that said, let's get into it:

In this video I’m going to focus on 3 main questions:
What is cryptocurrency?
Why was it created?
How does de-fi work?

What is cryptocurrency then?

A cryptocurrency is in its simplest form: a digital form of currency
More specifically, a cryptocurrency is a digital unit of exchange where the coin ownership records are stored in an online digital ledger which uses cryptography to
secure the transaction records
to control the creation of additional coins, and
to verify the transfer of coin ownership

If you look at the USD as an example, that is issued & controlled by the Federal Reserve. The Euro is issued & controlled by the ECB, the European Central Bank.

The problem with centralised finance is that the central bank can create new currency at the push of a button which not only creates inflation, but also steals from the savers in society through reducing the purchasing power of their savings.

So cryptocurrencies use decentralisation instead, where no one person or tiny group of people can have such an exuberant advantage. So this allows crypto’s to exist outside the control of governments and central banks because Cryptocurrency is not issued by a central bank.

Because a cryptocurrency is a digital currency that is secured by cryptography, it makes it nearly impossible to counterfeit or double-spend.
Most of the current cryptocurrencies as of today are decentralised networks based on blockchain technology which is a distributed ledger enforced by a network of computers, but not all. The cryptocurrency ‘Hedara Hashgraph’ for example, doesn’t use the blockchain.

Cryptocurrencies are excellent for their transparency, portability, divisibility & inflation resistance. But they are also criticised for how some criminal organisations use them for illegals activities.

Overall, cryptocurrency operates entirely separate from the current banking system, which is one of the reasons why the banks & governments do not like cryptocurrency, because cryptocurrencies act in direct competition to the banks profits & Government taxes.
In other words, under the current financial system, cryptocurrency cannot be controlled or manipulated.

Why was Cryptocurrency created?

The first and still the largest cryptocurrency is Bitcoin, created by the alias, Satoshi Nakamoto who is said to have been trying to solve a problem that had kept people enslaved for generations through our financial system. He wanted to build a decentralised digital cash system outside the influence of banks and Government.

In creating Bitcoin, he solved the problem of the current banking system which is based on an old World model of being an intermediary (remember that word), banks therefore take a cut of the transactions that we all make on a daily basis, whilst at the same time being extremely slow and expensive.

Cryptocurrency on the other hand, allows people from all around the World who don’t have bank accounts, to finally receive an electronic form of currency without high fees, intermediaries and long delays waiting for the funds.

What is DeFi and how does it work?

DeFi as it is often referred to, stands for Decentralised finance. It’s a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks

So how does it work?

These DeFi applications give people like you, more control over your currency through personal wallets and platforms that are tailored to people, not financial institutions.

CHAPTERS
00:00 - Introduction & Overview
04:19 - What is Cryptocurrency?
09:30 - Why was Cryptocurrency created?
12:43 - How does de-fi (Decentralised Finance) work
16:40 - Conclusion

DISCLAIMER
This video is for entertainment purposes ONLY & designed to help your thinking, not direct it. These videos shall NOT be construed as tax, legal or financial advice and may be outdated or inaccurate; all decisions made as a result of viewing are yours alone.

Sponsorships: Neil McCoy-Ward may earn an affiliate commission or referral bonus from any product or service listed or discussed.