Definition: Cryptocurrencies like Bitcoin are digital or virtual money that uses cryptography for security. Unlike traditional currencies, it’s decentralized and typically operates on a technology called blockchain.
At their core, cryptocurrencies are built around the principle of a universal, inviolable ledger, one that is made fully public and is constantly being verified by these high-powered computers, each essentially acting independently of the others.
Paul Vigna, former reporter at The Wall Street Journal
Didn’t Get That?
Think of crypto as using an advanced version of your banking app. Just like you transfer money to a friend digitally, with cryptocurrency, you transfer value without the need for a bank in the middle. If you had bought a cup of coffee with Bitcoin a few years ago, that coffee might have cost you what’s now worth a small car. Cryptocurrency values can skyrocket – it’s part of their charm (and risk). While not every café accepts Bitcoin, the day might come when digital currencies are as common as debit cards.
