NATIONAL CRYPTOCURRENCY MONTH
The entire month of October is a celebration of cryptocurrencies and the cultivation of new economic growth opportunities they bring.
Cyptocurrency is a class of digital currencies that exist outside the governance of any one country’s economy or government. While fiat currency is a system of money used and accepted in a particular country, cryptocurrencies are digital coins and tokens, minted electronically on a blockchain using cryptography. Cryptography is the science of protecting data by transforming it into a secure format.
How does cryptocurrency work? All cryptocurrencies run and operate on something called blockchain. A blockchain is a record of transactions updated and held by currency holders that cannot be altered, deleted, or destroyed. Each transaction also affects succeeding transactions, which makes tampering with a previous transaction virtually impossible. This visibility establishes trust, accountability, and transparency.
Can you buy things with cryptocurrency? Absolutely. Many cryptocurrency platforms allow you to use your digital funds to purchase items. For example, Expedia allows you to book a vacation for a small fee. Retailers are beginning to allow payment of goods using cryptocurrency. If you have a large amount of cryptocurrency in your digital wallet, you might be able to secure a home loan using your currency as collateral. Of course not everyone takes cryptocurrency as payment, but if you have PayPal, you can use your currency to pay for goods through their new service Checkout With Crypto.
- The first cryptocurrency purchase of a physical product was in 2010 for two pizzas.
- A man in Wales accidently threw out his hard drive containing 7,500 Bitcoin (now worth millions) and is appealing to his local city council to excavate the landfill it ended up in.
- It’s virtually impossible to ban cryptocurrency, but many countries have implemented strict regulations on exchanges.
- In 2018, someone bought a CryptoKitty Dragon for 600 Ethereum valuing at $170,000. Amazingly, that same CryptoKitty now has a value of $1.5 million.
- There are there more than 9,500 cryptocurrencies in existence today.
There are thousands of cryptocurrencies, including Bitcoin, Ethereum, Ripple, Litecoin, and others. The value of these assets is largely determined by how much people invest in them, and they hold the same value everywhere in the world.
Top 3 Cryptocurrencies
- Bitcoin was the first cryptocurrency in the digital world making it’s debut in 2008 and still holding the #1 spot in cryptocurrency. Money transfer occurs through the bitcoin network of registered users. All transactions are verified and authenticated by nodes and recorded on the blockchain.
- Ethereum is the second largest open-source blockchain with a large variety of financial services. According to Ethereum.org, “While Bitcoin is only a payment network, Ethereum is more like a marketplace of financial services, games, social networks and other apps that respect your privacy and cannot censor you.”
- Tether is the largest stablecoin in cryptocurrency.
- Stablecoins differ from other cryptocurrencies in that their value is “pegged” to a particular fiat currency (for example, the US Dollar), so its value is as stable as the asset it’s pegged to. Tether and other stablecoins are used for lending and converting one crypto to another.
ENGAGE IN THE CRYPTOCURRENCY WORLD
- Take a class to learn about cryptocurrency.
- Invest in cryptocurrency.
- Learn the history of cryptocurrency, including who is credited with being the “founder” of this digital currency.
- Teach a class to beginners if you are an expert cryptocurrency user.
- Share #NationalCryptocurrencyMonth on social media.
DIGITAL MONEY HISTORY
In 2022, Guy Gotslak from My Digital Money and National Day Calendar created National Cryptocurrency Month to be celebrated each year the entire month of October. My Digital Money allows customers to invest cash or part of a self-directed IRA into cryptocurrency.
The first mention of cryptocurrency appears in 1983 by David Chaum. After introducing his concept of encrypted electronic money in a conference paper, Chum began to develop a proto-cryptocurrency named Digicash. Using key encryption to withdraw money from a bank, Chaum successfully transferred money to a recipient without using a financial institution.
In 2008, Satoshi Nakamoto (not his/her real name) introduced Bitcoin and information on how to operate it using blockchain technology. However, it is know Nakamoto would make reference to current economic conditions involving financial institutions, including bank bailouts. In fact, a headline in The Times ran announcing a new method to exchange currency without financial institution involvement.
Early exchanges of currency made a lot of money for people and their investments. Unfortunately, that money was sometimes associated with illegal activity, such as drug sales, prostitution, and theft. Luckily, like all technology, knowledge increases resulting in substantial improvements. Today, anyone can use cryptocurrency to secure their own financial portfolio.
What is cryptocurrency and how does it work?
Also, read one of our previous blogs here:
Cryptocurrency And Estate Planning: What Digital Investors Should Know.
Click here to check out our On Demand Video about Estate Planning.
Click here for a short informative video from our own Attorney Bill O’Leary.