What The Heck Is A Cryptocurrency? - A Study Made By A Noob For A Noob - Part 1 by arsenal49

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· @arsenal49 ·
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What The Heck Is A Cryptocurrency? - A Study Made By A Noob For A Noob - Part 1
# The Time Has Come

I have been investing and reading about *crypto currency* since 2014. Yet, I know nothing. I know a little bit, sure, but when I talk about it I feel weird. I feel weird because I can feel I don't truly understand what it is. So in this series, I will try to understand what a crypto currency is, a blockchain, mining, just in general, how it works. 

To show you how I would react if a person asked me; *"Jeppe, what is and how does Bitcoin actually work"* 

**I would react like Ron Burgundy was asked what divirsity is..**

https://www.youtube.com/watch?v=Lmj9HnbdhTc

# What Is A Crypto Currency?

Well if we take a look at what wikipedia says, you will find this..

> A cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency.[1] Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies.

Come at me @cheetah! 

Well for me. This dosn't make much sense. It might be because English is not my native language, or that I'm an idiot. I am likely to believe both. 

For me, and hopefully for many others, I need a more simple explanation.

**I will try, but please correct me if i'm wrong!**

Crypto - Currency. Lets break that down. We all know what *currency* is, but when we add crypto it gets trickier. **A cryptocurrency is digital decentralized currency**. So a digital currency that is not controlled by a goverment for example. **It is simply a digital currency that is not controlled or govern by anyone**. 

# How does it work then? 

No idea...Hopefully I will figure it out..

# Thanks for reading

https://steemitimages.com/0x0/http://gifmaker.me/files/download/home/20170524/19/1TaQiZOMlcB3yvcfQ4sfnr/output_9mip1c.gif

Thanks for this @papa-pepper!
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vote details (49)
@clevercreator ·
Steem on!
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vote details (1)
@sireland · (edited)
Love the ron burgundy clip! Start with comparisons. I'll use US Dollars (USD)/Bitcoin (BTC)
Media = Paper/Digital
Supply = Gov/Science
Person 2 Person transfer = Physical/Computers
transfer processing = Banks/Miners
processing payments = Bank fees/Bitcoin
Value = Confidence/Confidence
Security = Physical/Crypto (ever increasing encryption, aka blockchain)
Policy = Government/Transparent Science

There's probably many more comparisons to be made but basically if you trust governments and the people that run them then stick with fiat currency (paper money). I trust scientific code that is public.
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@arsenal49 ·
Thank you! I might use that in the next one!
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@ced ·
Haha I believe we all start the same way, learning on our side... I did the same ;)
https://steemit.com/story/@ced/a-full-week-learning-about-cryptocurrencies-blockchain-1800-words
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@ullsgpir ·
Nice work
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