Diving into Crypto currency

The jury came back and Crypto currency was cleared of most if not all charges of being a “scam.” (Article: Crypto Currency Investment or Scam?) “Crypto currency is a digital currency in which transactions are verified and records maintained by the decentralized system using cryptography, rather than by a centralized authority. In simple terms, cryptos are systems that allow for secure payments online which are denominated in terms of virtual “tokens”, Mimie Sigilai Digital Currency Expert. We further had the following questions for Mimie Sigilai;

How is crypto currency recorded?

It is recorded on a shared, digital ledger called the blockchain. Its decentralized technology, spread across many computers, that records every transaction.

Are block chain and crypto currency the same?

No. Block chain is the technology that allows for crypto currency to work. It is a decentralized and digital ledger of transactions used for crypto currencies and other assets.

Let’s start with some definitions?

Crypto: an umbrella term for all digital and virtual currencies

Coins: any crypto that has its own separate blockchain.

Tokens: generally, any crypto currency that is built on top of the existing blockchain.

ICO: an abbreviation of  Initial Coin Offering, thus is analogous to a privately held company going public via an Initial Public Offering (IPO)_a way to raise funds for a new crypto currency or expand services for existing coins.

What is a crypto wallet?

They are places to store digital assets more securely than just on exchange.  You hold your wallet via an exchange account, custody wallet or outside of the exchange.

What are the top crypto currencies?:

The most popular and widely heard is bitcoin. As of January 2021, the total cryptocurrency market is over $1trillion, and bitcoin is around $700billion.

The top 5 are Bitcoin, Ethereum, XRP, Tether, and Litecoin.

Is institutional adoption increasing?

There was an increase in institutional adoption in 2020 from traditional banks, newer technology companies, endowments, and pensions

Can crypto currency fail?

Yes. It is estimated that close to 2000 crypto currencies have failed. Reasons being: lack of funding at the start and after launch, failure to evolve, and a few outright frauds.

The only way to grow is by removing ignorance from our subconscious.


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