What is the Point of Cryptocurrency? (4 Reasons Why You Should Care)

Updated: Apr 5

You may have heard of Bitcoin and Ethereum. You’ve also probably heard how people make thousands, if not millions of dollars, by “investing” in cryptocurrency. But what is it? Or a better question…what is the point of cryptocurrency?

Why You Should Care About Cryptocurrency

A cryptocurrency is a digital form of money that is a more secure medium of exchange.

The big idea is that because transactions are public, irreversible, mostly unhackable, and controlled by the people, users and their digital finances are more protected.

Of course, many benefits come with cryptocurrency. Below are four key reasons why people have begun to care about cryptocurrency.

1. Cryptocurrency Is Owned By Everyone

Cryptocurrency functions similarly to any traditional, national currency with a few fundamental differences.

Current “fiat currency” is created and regulated by a governmental body, all of which now represent debt. Anyone that owns a country’s currency holds an “IOU” issued by that respective country.

Cryptocurrency does not stand for debt. It strictly represents itself, and its value is determined by what someone is willing to trade for it.

The fact that cryptocurrency is decentralized plays an essential role in how its currency value is determined.

Nobody owns or regulates a cryptocurrency. Its value is not subject to a country’s political whims or a central bank’s monetary policy.