Cryptocurrency Is Not Currency, It’s Stock, Software, and Money Rolled Into One
Bitcoin and cryptocurrency have finally gone mainstream. Celebrities like Paris Hilton are sporting the $100k laser eyes. NBA teams like the Sacramento Kings are offering to pay their players in Bitcoin. According to BuyBitcoinWorldWide.com, 90% of Americans have heard of Bitcoin.
However, if you ask the average person to explain what Bitcoin or cryptocurrency is, you’ll probably get a puzzled look and a half mangled answer that it is digital money. While I am excited that cryptocurrency is taking over our financial system, defining cryptocurrency simply as digital money is taking away its true power and meaning.
The better and simplified definition of cryptocurrency is that it is money, software, and stock all rolled into one.
Let me explain.
Cryptocurrency is money.
Cryptocurrency has a dollar value and you can exchange one cryptocurrency for another via crypto exchanges (like Coinbase, Uniswap, etc), much like you would swap foreign currency at a bank or exchange when you travel from country to country.
It is easy to swap US Dollars around the world because it’s the world’s reserve currency and everything is priced in it. I’m able to go to Mexico and various other countries and pay…
