In short the banks cannot control or steal your money….Learn only the necessary things you need to know to become a crypto guru in layman terms!
What Is Cryptocurrency? Cryptocurrency Course (Part 1)
Alright with all that said, let’s get into it:
In this video I’m going to focus on 3 main questions:
What is cryptocurrency?
Why was it created?
How does de-fi work?
What is cryptocurrency then?
A cryptocurrency is in its simplest form: a digital form of currency
More specifically, a cryptocurrency is a digital unit of exchange where the coin ownership records are stored in an online digital ledger which uses cryptography to
secure the transaction records
to control the creation of additional coins, and
to verify the transfer of coin ownership
If you look at the USD as an example, that is issued & controlled by the Federal Reserve. The Euro is issued & controlled by the ECB, the European Central Bank
The problem with centralised finance is that the central bank can create new currency at the push of a button which not only creates inflation, but also steals from the savers in society through reducing the purchasing power of their savings
So cryptocurrencies use decentralisation instead, where no one person or tiny group of people can have such an exuberant advantage. So this allows crypto’s to exist outside the control of governments and central banks because Cryptocurrency is not issued by a central bank
Because a cryptocurrency is a digital currency that is secured by cryptography, it makes it nearly impossible to counterfeit or double-spend
Most of the current cryptocurrencies as of today are decentralised networks based on blockchain technology which is a distributed ledger enforced by a network of computers, but not all
Cryptocurrencies are excellent for their transparency, portability, divisibility & inflation resistance. But they are also criticised for how some criminal organisations use them for illegals activities
Overall, cryptocurrency operates entirely separate from the current banking system, which is one of the reasons why the banks & governments do not like cryptocurrency, because cryptocurrencies act in direct competition to the banks profits & Government taxes.
In other words, under the current financial system, cryptocurrency cannot be controlled or manipulated
Why was Cryptocurrency created?
The first and still the largest cryptocurrency is Bitcoin, created by the alias, Satoshi Nakamoto who is said to have been trying to solve a problem that had kept people enslaved for generations through our financial system. He wanted to build a decentralised digital cash system outside the influence of banks and Government
In creating Bitcoin, he solved the problem of the current banking system which is based on an old World model of being an intermediary (remember that word), banks therefore take a cut of the transactions that we all make on a daily basis, whilst at the same time being extremely slow and expensive
Cryptocurrency on the other hand, allows people from all around the World who don’t have bank accounts, to finally receive an electronic form of currency without high fees, intermediaries and long delays waiting for the funds
What is DeFi and how does it work?
DeFi as it is often referred to, stands for Decentralised finance. It’s a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks
So how does it work?
These DeFi applications give people like you, more control over your currency through personal wallets and platforms that are tailored to people, not financial institutions.
DISCLAIMER: Please be advised that nothing in this video shall be construed to be financial, legal or tax advice. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor. All personal opinion is intended for general information purposes only.