(Originally Posted July 18th 2023)
Cryptocurrency, a digital currency not many actually understand the true purpose of it (not even me!). Lots will say it is an “internet money” that could solve the financial economy, others say it is a store of value, some say it is a way to escape Fiat, and a few say it isn’t worth taking time to learn. There are many opinions and it is difficult to learn what ‘Cryptocurrency’ is because any search on a platform will usually lead to a crazy rabbit hole that actually requires information about Blockchains, InterPlanetary File System(IPFS), Cryptographs, hashings, ‘proof of’ algorithms, ‘Moons’ and exchanges. swap services, and hype people giving analysis on why a coin is going to ’50x’ because of either a fork, a change of “proof-of” algorithm, or even an update to the Blockchain itself. So much stuff that at the end of researching all that’s left is confusion.
Cryptocurrency is not a replacement for Fiat (though many wish it would!). Cryptocurrency is just an alternative to current financial systems that offer a sort of freedom and ownership between a person, their assets, and what can be achieved with it.
My understanding of cryptocurrency is it only has ‘value’ if it provides a utility. Every cryptocurrency should serve a purpose that is beneficial to the holder, be it ease of sending currency or information, funding a project, providing access to a platform, or participation on a blockchain. Anything that provides a reason to hold a cryptocurrency, (in my opinion), gives a better idea of what to expect from that currency and the community that uses it.
Cryptocurrency has many facets to consider though when entering the space, function, useability, accessibility, availability, and so much more. Doing research is critical when getting started with cryptocurrency. Cryptocurrency is always changing and any news older than a month might be too old to be of use. Always try to keep research data within a certain timeframe to ensure the information is fresh and relevant.
Helpful Links:
– https://www.investopedia.com/tech/most-important-cryptocurrencies-other-than-bitcoin/ – Small list explaining different currencies and their potential uses.
– https://www.investopedia.com/meme-coin-6750312 – An overview of coins that are based around ‘Memes’ and have no real utility. People usually add these to their wallets for fun.
– https://www.forbes.com/advisor/in/investing/cryptocurrency/advantages-of-cryptocurrency/ – Pros and cons of holding are always warranted when making a decision.