WEBVTT

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hi in this video we will give an

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overview of what cryptocurrency is

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crypto is just short for cryptography

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cryptography is the practice of encoding

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information so only authorized people

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can read it and currency is a system of

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money in general use in a particular

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country the US dollar the euro and many

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other major world monies are considered

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currencies because their governments

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have made them to be used to buy goods

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and services cryptocurrency is something

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that only exists as a digital currency

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it does not hold any underlying value

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it's not something you can withdraw from

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the bank and hold in your hand it is

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only a unique string of letters and

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numbers stored digitally both regular

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currency and cryptocurrency can be

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called money or currency both are

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mediums of exchange that are used to

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store and transfer data both can be used

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to purchase goods and services both have

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their value governed by supply demand

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work scarcity and other economic factors

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and both can be traded on exchanges

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regular money is made of some material

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like paper cryptocurrency is digital

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regular money is legal tender backed by

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a centralized government it can take the

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form of physical dollars for example

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paper Federal Reserve notes or it can be

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represented electronically such as with

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bank credit and the government controls

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the supply cryptocurrency is not legal

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tender and it's not backed by a central

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government or bank it is decentralized

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in global a computer algorithm or

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process controls the supply regular

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currency requires an intermediary like a

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bank or PayPal cryptocurrency is on a

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distributed network of computers and no

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third parties to trust for the system to

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work users are in complete control of

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their money and information at all times

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when you pay someone cash send them a

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check or pay with money from your credit

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card they know exactly who made the

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purchase because they either actually

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see you there

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there are some identifying information

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attached to the transaction you don't

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have to give any personal information to

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own and use cryptocurrency and there are

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no rules about who can own or use crypto

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currencies regular money is inflationary

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meaning the value of each dollar

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decreases over time and you cannot buy

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as much with the same dollar from year

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to year cryptocurrency has deflationary

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attributes since there is actually a cap

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to supply which often causes people to

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save more and then purchasing power

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usually increases sending regular

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currencies around the world can be

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difficult with wire transfers and

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exchanges between monetary systems

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crypto currencies can be sent all over

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the world pretty easily now it's your

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turn to explore some more resources and

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activities