Cryptocurrency Explained In Under A Minute
When you receive Euros or Pesos on vacation, you exchange them to your native currency (USD in my case) when you go home, because that is what people accept. It is the same with cryptocurrency: You don't have to hold onto it when you receive it. You can immediately exchange it for USD, Euros, Pesos, etc.
There's a burger joint in Newport Beach that accepts Bitcoin. Their program immediately exchanges the BTC to USD. They do not have to deal with the volatility of Bitcoin. As Bitcoin becomes more stable, maybe they will one day pay their vendors with it. Exchanging cryptocurrency for USD is less of a fee than what the credit card companies charge, so maybe that will be the new way of things.
That volatility is what creates an opportunity for investors. Investors will buy low and hopefully sell high, just like they do in the stock market. So in that way, although cryptocurrency is not a stock, it has a buy low/sell high "stock-like" quality. The operative word in cryptocurrency is CURRENCY, meaning it is to be used in transactions, just like the USD. Years ago people asked if they could buy tickets to my show using Venmo, but I wasn't familiar with it. Enough people asked, and now I accept it daily. The same has happened with cryptocurrency: People kept asking about it so now I accept it.
Unless you're using cash, gold, or silver... you don't actually touch your money. You don't touch your money when you use a credit card, receive a check, or use Venmo. Cryptocurrency is the same in that way. Understanding the technological process of the methods of payment within the Venmo app or the mechanics behind a wire transfer of your bank is mostly only known by tech geeks. Understanding that part isn't necessary for using a credit card, Venmo, or cryptocurrency.
Thanks for reading,