Digital currency has been around for many years but it is only during the past 7-8 years that crypto currency has emerged and is the new kid on the block with Bitcoin being the leader, Ethereum following and about 1500 others trailing behind. But what IS bitcoin and what on earth is Blockchain?
Let’s work through this together and gain a better understanding of these new currencies. We will start with fiat currency.
Fiat currency is of course is what we all know such as Dollars, Pounds, Euros, Yen, Yuan and so forth. This is the cash we use to buy goods and services and pay our bills and what we all traditionally know as money or hard currency. Money, or currency, is basically an idea backed by confidence. The more confident we are about a particular currency the more value we place in it. The value of a currency changes day by day and this is what currency traders’ work on, how the confidence level of a particular currency changes in relationship to the confidence level of another currency.