What is cryptocurrency?

Bitcoin is just one out of 9,000+ cryptocurrencies. Was it the first one? Yes. Is it the most valuable digital currency in the world? Yes. But to conflate the two - crypto and Bitcoin - is incorrect. Bitcoin is mainly used as a currency. Most cryptos are not just used as currencies, but rather they build applications. Crypto is code- it is code that has utility. When you think of crypto, you should think of the most skilled and brilliant engineers in the world using languages like Python and Java to build applications. In other words, don't think of crypto as currencies- think of them as secure network platforms with features that allow for the development of apps that have unique utility.

Blockchain has a crucial role in cryptocurrency systems. It is a ledger that stores information electronically in a digital format. Think of it as a database for crypto transactions- the only difference is the way the data is stuctured. With Blockchain, a "block" collects a set of information, and then when the storage is filled, it closes and then links to another previously filled block, forming a chain. Databases are structured with tables while blockchain structures data into chunks which form an irreversible timeline of data when implemented in a decentralized nature.

So what do I mean when I say crypto transactions?

I never said crypto can't be used as currency. I said most of it is not just used as currency. Theoretically all cryptocurrencies can be used as currency. Crypto code can make transactions and each transaction is stored to a global ledger (blockchain). A crypto transaction is an instrument that expresses the intent to transfer money, then it is signed by the owner of the source funds (digitally). The signed transaction is now valid and contains all the information needed to execute the transfer of funds and then waits on the network so it can then be recorded on the blockchain and confirmed by sufficient subsequent blocks.

I know, I know -- this all sounds very complicated -- and it is.

But that is why I suggest if you are new to crypto that you not initially focus on the transactional nature of cryptos, but rather their utility.

Crypto projects are limitless. The projects range anywhere from streaming videos on Twitch and YouTube at a faster speed to creating massive data storage, to creating online health care services.

Cardano is a coin that is being used to make a national student ID system in Ethiopia.

Decentraland is the first-ever virtual world owned by its users and is created by the crypto code, $MANA.

Graph token is indexing protocol code that can create APIs, making data easily accessible.

When a crypto investor such as myself invests my hard-earned money into crypto, I am not buying some frivolous idea- I am buying the code that is being produced by the most brilliant engineers in the world. If you look at the CEOs of most crypto projects -- not shitcoins but solid projects-- you will see they come from places like Google and Apple, such as Stephen Tse of Harmony $ONE protocol.

I am not buying crypto because I think that somehow the currency factor of crypto will take over the world anytime soon. I am investing in the code's utility and the people who are writing this code.

Bitcoin is the most known crypto and has had one bad article after another put out about it, year after year. Articles warning of its "volatility" and "chaos" have been written every year since at least 2011. The bad press is meant to create FUD and negative stigmas. The banks hate crypto and the government hates crypto.

Crypto was created for the sole purpose of being decentralized and to be out of reach by the hands of the government. If crypto is a truly decentralized system, which it currently is, then there is no way for the government to make profit off of it. The government claims they just want to "regulate crypto"- regulation inherently means oversight and making profit. Crypto also challenges the dominance of the US dollar.

See where I'm going with this? I am oversimplifying a lot but you get my drift.

I would also like to note that I am not anti-government. I am simply pointing out that our government will shine a negative light on crypto until they can figure out how to control it.

Banks hate crypto because they are fearful of its growing popularity. Most countries in Europe use crypto as an option for banking and payments as well as many countries in Asia. When it comes to crypto, Europe and Asia are lightyears ahead of the United States- I like to think of the U.S. as Blockbuster while the rest of the world is Netflix. There have been proposals in Europe for some regulation.

Also, there have been concerted attacks by banks to bring down crypto because of stable coins. Stable coins are cryptos that are static- a stable coin, such as $USDT, is always worth a U.S. dollar, never waivering. Converting your crypto earnings into stable coin and letting them sit in your exchanges ensures that your money will never depreciate and removes the need for banks.

Banks will become less relevant when more vendors start accepting accepting crypto as payment. Balenciaga, Gucci, and Sheetz are just a few places you can currently make purchases with crypto.

Yes-it is true. There are some environmental implications. Currently, in order for these crypto transactions to happen as mentioned above, there is a decent amount of energy that must be expended. Mining crypto consumes electricity, with Bitcoin being the biggest offender. The good news is the developers who are creating new projects are aware of this and are working to change this.

Vitalik Buterin, the founder of Ethereum, is working on a solution. In the future, crypto will be Proof of Stake (PoS) instead of what it currently is, Proof of Work (PoW). This means the crypto transactions' method for validating entries and creating new blocks in the blockchain ledger will allow networks to operate with substantially lower resource consumption.