Put simply, cryptocurrencies are like regular currencies except they’re entirely digital. Each individual cryptocurrency coin is fundamentally just a collection of numbers and letters
This sounds complicated, but it’s actually not far off from what we see with currencies today. Bills have serial numbers, and bank accounts have account numbers
Cryptocurrencies are basically like serial numbers without the physical bill, and cryptocurrency wallets are like bank account numbers without your name attached to them
Instead of the bank or government keeping track of your wallet balance, this is done by computers that connect to a cryptocurrency network to process transactions and earn cryptocurrency for doing so
🙋♂Questions About Bitcoin, Dogecoin, Ethereum etc.🙋♂
Broadly speaking there are two types of cryptocurrencies: coins and tokens. Cryptocurrency coins belong to cryptocurrency networks that were built from the ground up
Because cryptocurrency networks are so hard to make from scratch, only a few dozen cryptocurrencies are actually coins. The rest are cryptocurrency tokens
The most important thing to remember about cryptocurrency tokens is that a lot of them are nothing more than scams. This is primarily because cryptocurrency tokens are so easy to create
⚖Cryptocurrency Safety And Criminal Use Concerns⚖
For starters, not all cryptocurrencies are created equal. Some cryptocurrencies are built to prioritize speed over security, and usually the consequences of that play out quite quickly
When it comes to the criminal activities, it is true that ransom demands made by hackers often involve some kind of cryptocurrency. However, these cryptocurrencies always get swapped to privacy coins
💰Explaining Cryptocurrency Price And Value💰
Bitcoin has value because its BTC coin has an economic profile to gold. It has a maximum supply and only a small amount of BTC is created each day, and that amount is cut in half every 4 years
Cryptocurrencies like Ethereum’s ETH have value because they are required to pay for the transaction fees associated with minting and moving tokens as well as using decentralized applications
