Right now, the Federal Reserve, also known as the Fed, is the only entity that is allowed to print money.
That’s a centralized system.
They can print trillions of dollars, essentially, out of thin air. And they are doing that right now.
With cryptocurrency, there is no single entity that holds the power to print crypto. In fact, you can’t print crypto.
There are only two ways to own cryptocurrency, you can either buy it or mine it.
To buy crypto, you can go to a marketplace that sells crypto and buy some. On your screen are some popular crypto marketplaces.
Mining crypto is like mining gold, but digital. Okay, so maybe it’s not like mining gold exactly.
Instead of digging the ground to find gold, you need to solve cryptographic problems.
These cryptographic problems or puzzles were put in place by the creator of the cryptocurrency.
In the next video, we will discuss the differences between some of the most popular cryptocurrencies. You may also just get into that if you want. Just check the description box for the links.
Transparency of each transaction
Right now, if we buy anything online using our credit or debit cars, check, or digital money transfer system like Venmo, Zelle, or even Paypal, that transaction is recorded in our banks.
With a decentralized system, we don’t need a bank. Each transaction is recorded into a blockchain. The transaction is maintained by the public. Anyone who has enough skills to operate a block can join the blockchain.
It is this transparency that creates the security.
If you don’t know what a blockchain is, please click on the link found in the description box.
How is the price of a crypto currency determined?
A crypto currency’s price is not set by anyone in particular. It’s set by the market—this makes pricing the currency more complex because prices will vary by exchange. As an example, you could look up the price of Bitcoin in different marketplaces and one might show $15000 while another may show $15200.
This is why many crypto haters say that it isn’t really worth anything. It’s only worth what you will pay for it. For the record, that’s true for every commodity out there.
Yes, unlike a box of cereal or a can of tuna, the creator does not set a retail price. That’s part of the power of cryptocurrency, the power rests in us, not some entity that constantly inflates the retail value of goods.
So, what are the top cryptos out there? Click the next video or check the description box to check out other videos.