1 What is Crypto?
By definition, cryptocurrency is a digital currency. Between credit cards, bank transfers, and apps like PayPal and Venmo, it already feels like we are operating in a world of digital currency. How many of us actually handle cash to make purchases every day, or pay the bills?
So if we are already living in a world filled with digital transactions, how is
All of those digital transactions still require a middle man. Purchases made on your credit card require a credit processing company. Automatic transfers require a bank, and even transferring funds on apps like PayPal still require the use of a third party app.
Imagine being able to transfer funds or make purchases person-to-person, without a middle man. Let’s say you have a service or product that I am
interested in. We come to an agreement on price, I send you the amount, and a purchase gets made. Well, isn’t direct, person to person transaction what cash is for?
Cash has a few inherent flaws. First, there are no records of the transactions, so you can never prove a purchase. Second, let’s be honest – someone still needed to go to the bank to get that cash, right?
Cryptocurrency is a store of value that doesn’t require any kind of centralized authority. This means it essentially takes out the middle-man. It is built on math and code, not government officials and bankers and is built on a technology we call the blockchain