Part 1 of my “What is?” series
Investopedia is the newbie investor’s best friend because it clearly defines key concepts.
It defines cryptocyrrency as “a digital or virtual currency that uses cryptography for security”.
By now, most smartphone users have heard about cryptography and encryption of their private messaging applications which makes it very difficult (almost impossible in the case of Apple) to unlock and decypher your data. Indeed, cryptography is “the process of converting ordinary information (called plaintext) into unintelligible form (called ciphertext)”. Simply put, cryptography codes your data so nobody can use it if stolen.
Thus, thanks to cryptography, cryptocurrency very difficult to counterfeit. This makes cryptocurrency very appealing to everybody concerned about being conned by unscrupulous people (which there are a lot of out there!).
US dollars, on the other hand, are very easy to counterfeit because of their simplicity. The Euro is already much harder to counterfeit because of the encrypted security features on the bill.
In my next article I will define blockchain technology.
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