Lesson 1 of 4
Definitions and Key Concepts
- Altcoin = alternative cryptocurrency to bitcoin
- Bitcoin = first public blockchain
- bitcoin = cryptocurrency created by the Bitcoin blockchain
- Bubble = when prices go up extremely fast, like blowing up a balloon
- Commodity – general term used to describe a tradable cryptocurrency
- Cryptocurrency = cryptographic currency = crypto.
- Crypto Coin = unit of account created by a blockchain protocol
- Crypto Token = unit of account created by software running on the blockchain
- FUD = Fear, Uncertainty, Doubt
- FOMO = Fear of Missing Out
- Hodl = variation on the word hold, means hold for long-term
- A blockchain is a distributed digital ledger that keeps track of everybody’s cryptocurrency. It is extremely secure because the ledger is duplicated across many computers around the world. There is no single point of failure.
- Virtual currency or cryptocurrency is a digital representation of value that functions as a medium of exchange, a unit of account, and/or a store of value, just like our digital currency in our bank account. The difference is that virtual currency is not legal tender in the U.S. and digital currency is legal tender.
- Virtual currency is synonymous with cryptocurrency. In the U.S. the IRS (federal tax collector) calls cryptocurrency virtual currency.