The following is a guest post by Meredith Wood, Editor-in-Chief at Fundera.
The invention of bitcoin in 2009 built the foundation for the complex world of cryptocurrency. Today, banks, governments, countries, and individuals are starting to understand the value of this relatively new form of currency. Investment in cryptocurrencies continues to grow.
Bitcoin and other cryptocurrencies are unique from the traditional financial system because they exist in a decentralized environment in which there is not one regulator. Bitcoin and other cryptocurrencies instead use a peer-to-peer verification system in which everyone in the network has access to the all the transactions that have occurred and the balance within everyone’s accounts.
This decentralized system is largely what makes cryptocurrency completely unique from traditional currency. Because digital currency is an open system with no gatekeeper, pretty much anyone can participate if they desire to.
Though it continues to rise in popularity, some still struggle to understand the complexities of digital currency. To understand the future of cryptocurrency, it’s important to understand the way that the system works. Fundera created this guide that breaks down the complexities of cryptocurrencies. Read on for an outline of all the essentials of how the system works.