What is a Cryptocurrency?
Cryptocurrency is making the headline on news outlets all around the internet, but what is it? A cryptocurrency is simply a digital currency that is independent of centralized systems, namely banks. The very first cryptocurrency, the Bitcoin, was created in 2009 by pseudonymous developer Satoshi Nakamoto. We still don’t know who created it, but his/ her/ their creation has amassed a huge adoption by many around the world. Having been introduced in 2009, it’s price was nearly nothing, fractions of a penny; then it jumped up to nearly $20k. Today, a single Bitcoin costs around $13k and is one of over 1,000 other cryptocurrency, also called alt coins. The mainstream media for the years since Bitcoin’s inception have portrayed it in a negative light; though it has its share of objections, many are starting to invest in it.
The top three Cryptocurrency in the world:
Uniqueness of Cryptocurrency
Cryptocurrency is decentralized, meaning that it is not controlled by conglomerates such as banks and government. In addition, it incorporates blockchain technology, which is an incorruptible digital ledger that keeps track of everything that has happened in the past and will happen with the coin in the future. The amount and the fashion in which the coins are distributed vary.
There are 7,200 Bitcoins produced per day, but there will be less and less as time goes by and will eventually halt in production at 21 million Bitcoins, in year 2140.
More Resources on Cryptocurrency
- Blogger Tim Kim: http://tubofcash.com/bitcoin-frequently-asked-questions/
- A list of Cryptocurrency being traded: https://coinmarketcap.com/
- Documentary on Netflix: Banking on Bitcoin
Coinbase is the most commonly used and user friendly platform for people to purchase Bitcoin, Bitcoin Cash, Ethereum, and Litecoin (ranked in the top 6 cryptocurrency).
Word of Caution
Although Cryptocurrency may be popular and have extensive reach around the world, it is very volatile. It has also been used wrongly for criminal purposes. If you are considering purchasing coins, you are doing so at your own risk.
What is Financial Literacy? Why should you care?
Let’s start with the idea of money. Money is a tool that is used to obtain something else. It is currently what majority of people use in order to go about their daily living: buying groceries, clothes, gas, rent, so on… That much is known to us all, but how we utilize it can affect our lives in drastic ways.
Money is a tool. It’s a tool that helps us buy what we need and want. Financial Literacy is simply knowledge that allows one to be a wise steward of their finances. Many of us were not taught Financial Literacy in our general education, therefore we lack understanding of even basic finances when we step out of college and into the world.
I, for one didn’t have someone to really teach me the importance of saving – and where to save – and spending wisely, until I discovered a blogger, Tim Kim. I started there by closely following blog posts, engaging in his posts, and buying recommended books to grow in my understanding of stewarding my finances. Then I decided to change my spending habits and work towards growing my money instead of simply getting by.
Do I want to continue in this lifestyle? Am I able to pursue my aspirations freely? If money wasn’t a factor, what would I do with my life?
These are the questions I wrestled with. Eventually I decided that it was time to take action. I would work on replacing bad habits with healthy ones to guide me towards my goals. Ultimately, I am passionate about God and serving others. I want to spend most of my time investing into others, particularly young people, and guiding them to make informed decisions. I also feel deeply for orphans and widows; I want to help care for them in a greater capacity through financial means. To accomplish this, I need to start using the money I am allotted with more care and thought as the way I use it now will impact my ability to use it in the future. Developing financial literacy has already helped shape the direction in which I will go in order to obtain my initial goal of $10,000/ month in passive income by age 40.
I have been progressively widening my exposure in the finance blogging world and hope you can benefit from my journey. Please feel free to share your thoughts!