What is a Cryptocurrency?

Note: All data in this section updated as of March 30th, 2022

To paraphrase Abraham Lincoln, a cryptocurrency is the money “of the people, by the people and for the people.”

Contrary to popular belief, you don’t really own your money. Traditional currencies – such as the U.S. Dollar, Euro or RMB – are owned and controlled by the government and leased to the public to use as payments for goods and services. While this model has its benefits, it also gives the State the power to seize your funds, restrict access to your accounts or impose limitations on usage any time they see fit.

Cryptocurrencies, on the other hand, are created, distributed and, most importantly, owned directly by the people. This removes the need for governments and banks and gives consumers full control over their funds – allowing them to store their own assets without fear of seizure, transact directly with other users without regulation, and freely move their funds anywhere in the world.

Proponents assert that cryptocurrencies are superior to traditional government-backed (or “fiat”) currencies because they retain all the benefits of conventional money with the added benefits of being cheaper, faster, less restrictive, more accessible and highly transparent. Critics argue that they represent an existential threat to the global financial system, a serious danger to the community and must be regulated at all costs.

Whatever side of the argument one falls on, the popularity of cryptocurrencies is undeniable. The market has grown nearly 15x in the last three years to a total value of over $2 trillion.

The Total Market Cap of Cryptocurrencies is Over $2 Trillion

Source: Coinmarketcap.com as of 3.30.22

What is driving this popularity? Let’s dig a little deeper…