So the same as most currency that isn’t backed by actual valuables? Like the US dollar after it stopped being backed by gold like 100 years ago?
Crypto is a world currency that people have assigned value to. Pretty much all other money is a currency that individual countries have assigned a value to. Both types can be just as worthless. Hyper inflation has made money from many countries worth less than a roll of toilet paper to wipe your ass with. For that matter, the US dollar could buy you 30 rolls of toilet paper 75 years ago. Now it can only buy you like 1 roll.
When I think of crypto I think of that bloke grubbing through landfill for a lost hard drive. I think of Sam Bankman Fried. I think of Trump’s meme coin. Yes, I’m sure someone must be explaining it wrong to this old lady.
Its just an entry in a ledger. It says something like, “blandfordforever sends courageousstep 1 coin” along with a cryptographic signature from blandforever that validates the transaction. This means you now have and can transfer that coin to someone else, provided that you have the key to sign the appropriate transaction. That’s all it is.
The miners are all competing to sign a “block” of transactions onto the ledger by figuring out new correct answer to a math problem that’s determined in part by a number from the previous block. They are rewarded for this by being able to send themselves a preset number of coins in this new block they’ve signed. Transactions aren’t final until they’ve been added to the blockchain by this mechanism.
the problem with crypto is that when you try to explain it, it sounds so stupid that someone else thinks you have to be explaining it wrong
but if you want explanation, this one is fine https://ic.unicamp.br/~stolfi/bitcoin/2020-12-31-bitcoin-ponzi.html and this https://www.ic.unicamp.br/~stolfi/bitcoin/2021-01-16-yes-ponzi.html
So the same as most currency that isn’t backed by actual valuables? Like the US dollar after it stopped being backed by gold like 100 years ago?
Crypto is a world currency that people have assigned value to. Pretty much all other money is a currency that individual countries have assigned a value to. Both types can be just as worthless. Hyper inflation has made money from many countries worth less than a roll of toilet paper to wipe your ass with. For that matter, the US dollar could buy you 30 rolls of toilet paper 75 years ago. Now it can only buy you like 1 roll.
When I think of crypto I think of that bloke grubbing through landfill for a lost hard drive. I think of Sam Bankman Fried. I think of Trump’s meme coin. Yes, I’m sure someone must be explaining it wrong to this old lady.
These are great, but they don’t explain what a crypto coin actually is.
Its just an entry in a ledger. It says something like, “blandfordforever sends courageousstep 1 coin” along with a cryptographic signature from blandforever that validates the transaction. This means you now have and can transfer that coin to someone else, provided that you have the key to sign the appropriate transaction. That’s all it is.
The miners are all competing to sign a “block” of transactions onto the ledger by figuring out new correct answer to a math problem that’s determined in part by a number from the previous block. They are rewarded for this by being able to send themselves a preset number of coins in this new block they’ve signed. Transactions aren’t final until they’ve been added to the blockchain by this mechanism.
technical details vary and honestly matter little. what matters more is what people do with these things, and that’s what’s explained