What is (decentralised) cryptocurrency?
We can think of there as being three types of money - Robert Kiyosaki who wrote the Rich Dad / Poor Dad series explains it best;
- Fiat money is government money - Pounds, Dollars, Yen, Yuan.
- Precious Metals is God's money - Gold, Silver, Platinum.
- Cryptocurrency is people's money - Bitcoin, Litecoin, Ethereum.
Can you explain what cryptocurrency is?
Decentralised cryptocurrency is a digital form of money, outside of the control of any government. Whilst this may not sound like a good thing, it means everybody can get access to capital.
Many people in the third world are without a bank account - even in Western society, many don't have access to credit.
I still don't understand what is important about cryptocurrency?
Imagine you and a few friends go out for the evening. Rather than worrying about who is paying for what, a special wallet can keep track of who has had what and make sure one person does not spend 20% more than everybody else.
When making online payments, at some point we will get defrauded. The reason is obvious - we are handing over our credit card number, our personal details to an unknown third party. Cryptocurrency also has third parties, but they are algorithms which cannot be corrupted.
We see cryptocurrency as being the future of online payments, and it is important to ensure they are decentralised.
"I heard cryptocurrency is dangerous"
findigl was created for the following reasons;
- To make our lives easier when buying and selling houses.
- To serve as a good example of how to make online experiences more secure.
Cryptocurrency is just another medium open to tricksters but far more secure and less likely to happen.
We see cryptocurrency as being more secure than cash or precious metals because stealing it is harder.
"I heard cryptocurrency is volatile?"
Undoubtedly, cryptocurrency is highly volatile. It has only existed for around ten years. The key thing to remember is, as cryptocurrency matures as a technology, new mechanisms will be created to manage volatility.
"Could cryptocurrency drop to zero?"
Cryptocurrency can drop to zero, but it seems highly unlikely.
It is unfortunate, most people don't tend to look at historical asset prices.
Property is a great example of an asset, people think just keeps going up and up. Many people have made fortunes and used property as their nest-egg, but others have lost money.
Always do research on markets, trends and talk to financial experts.