Today’s goal is to gain a foundational understanding of what cryptocurrency is and how it originated. Here’s a step-by-step outline for today:
- Read a Basic Definition of Cryptocurrency
- Cryptocurrency is a type of digital or virtual currency that uses cryptography for security. Most are decentralized and based on blockchain technology, which makes them highly secure and independent from traditional financial institutions.
- Learn About the Origins of Cryptocurrency
- Bitcoin, launched in 2009 by an anonymous person (or group) known as Satoshi Nakamoto, was the first cryptocurrency and still the most well-known. Satoshi’s goal was to create a peer-to-peer electronic cash system free from third-party control, which could be trusted because of its decentralized, transparent nature.
- Research Key Terms Related to Cryptocurrency
- Some key terms to look up include decentralization, blockchain, peer-to-peer (P2P) networks, and cryptography. Understanding these terms will make it easier to grasp cryptocurrency concepts in the coming days.
- Explore Early Motivations Behind Cryptocurrency
- The financial crisis of 2008 led to mistrust in traditional financial institutions, contributing to cryptocurrency’s appeal. Cryptocurrencies aimed to offer a more transparent, secure, and independent form of currency.
- Reflect on the Value Proposition
- Consider why cryptocurrency is valuable: it’s decentralized, secure, transparent, and often more accessible. Think about what makes it different from traditional money and what problems it aims to solve.
