What is Cryptocurrency and Why Should You Care?

Welcome to EduCounting, where we’re passionate
about financial education. Today’s video is an “Introduction to Cryptocurrency”. Currency is the system of money we use in
our everyday lives to exchange for goods and services, like food, paying for our cell phone,
gas, going to the movies and more. We use coins and bills as a physical medium
of currency. We use other items that represent that currency
in the form of checks, credit cards or money orders for example. Currency has taken many forms since the dawn
of civilization. Commodities were used in the Stone Age, physical
money in Medieval times and digital money today. Just like coins and bills, cryptocurrency
is virtual currency and only exists only in digital form. It’s not something you can hold or put in
your pocket. The world has Yen, Euros, Dollars and more. Cryptocurrency has over 1600 different types
and that number is growing. The first cryptocurrency ever created was
Bitcoin. Since we can’t touch cryptocurrency, we
don’t put it in a safe at home or carry it to a bank and deposit it. Cryptocurrency is stored digitally in a cryptocurrency
wallet. The wallet secures the currency in a digital format with encryption through software programs. Therefore, you use a password to digitally
access your wallet. So, what can you do with cryptocurrency? Anything you can do with physical currency
such as buy goods, invest, make or accept payments and more! Cryptocurrency is special because it creates a permanent, verifiable, digital record of
every transaction that can’t be tampered with. It lasts forever. “Blockchain technology” is the key. It creates links in a chain of “blocks.” Each block is a packet of information that
holds the history and position of each transaction in the chain. The chain is secured by cryptography, which
is an incredibly complicated protection software to ensure the data can’t be erased or modified. In essence, the technology efficiently creates
a permanent, verifiable record of transactions which has many uses. We’ll talk about that later. Thanks for being here. Here’s to making better decisions through
better data and better education.

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