One of the hottest topics in the investment world today is cryptocurrency. It’s also one of the most misunderstood and with the current negative headlines about plunging value, easy to dismiss. However, like most headlines on the evening news, there is more to understand about this digital currency than a quick two-minute newscast can cover.
To understand what cryptocurrency is, you need to start with the Blockchain. In its simplest form, the Blockchain is just computer programs that perform specific functions. They are decentralized, meaning they are not owned by a specific entity. Blockchain is essentially a records-keeper, much like your favorite accounting software. Where it differs, however, is that any additions or changes to its files are recorded permanently on its digital “log” and visible for all to see. This makes Blockchain both a privacy-favoring transaction recording platform and one that is designed for trust, as any actions are visible and permanently recorded on the Blockchain.