[Music] hello folks you have reached the cryptocurrency portal and today we want to go over some of the most common crypto questions and why you should care this is gonna be a great video for beginners so if you know of a beginner that’s in the crypto space this might be one you want to shoot over to them or share with them so thanks again for tuning in so let’s go through this and what I really like about this is that this is Forbes that has put this together forbes.com and what’s good about that is not the traditional crypto specific websites when it’s getting out there into the ethers to more mainstream you know see a CS and B CNBC or Forbes it’s getting that message out there and it continues the momentum for the crypto space even though this is a very basic I’d say article and it’s great for beginners I think it’s very important that the Forbes of the world CNBC and those types of organizations and online platforms is that continue to talk about crypto in general when that bull market eventually comes back there’s gonna be some more more on and off-ramps more opportunities for information to flow people understand it more and there’ll be so many people even in the shoot in the youtube community to have so many channels that talk about crypto in general there’ll be so much information out there when people turn to crypto again in the masses so let’s go through this thank you – Rachel McCreary for a great article she’s on the Forbes Business Council and this is on the forbes.com site so there’s a new language developing around the world crypto currency and many people are already confused if you’re not well-versed in this brave new world you are not alone hopefully this article will answer your questions and help you build your cryptocurrency vocabulary that opening paragraph is aimed directly at newbies almost like we know you’re confused brave new world you’re not alone don’t worry about it dip your toe in get some information going so first off what is cryptocurrency now cryptocurrency consists of web-based digital assets that are you that use cryptographic functions to conduct financial transactions digital assets typically utilize blockchain technology to gain transparency in decentralization to varying degrees digital assets include Bitcoin and other cryptocurrencies and stable coins and just so you know folks there’s probably over 3,000 different cryptocurrencies just go to coin market cap and you can just see the listing of all them over time I’m sure a lot of those will fail as the market consolidates and the individual coins and tokens have to prove a use case in order to succeed long term kind of like the internet boom in the early 2000s that you had all those companies go public and it was vaporware and they didn’t really have a product or revenues and the ones that succeeded were the ones that had a use case in revenue such as Amazon and look where they are today so these at these digital currencies and cryptocurrency stable coins are backed by fiat for lower fluctuation and tokens which can sometimes the representative of units used within an organization to move currency around the globe or for gaming purposes and that’s key because I think that’s one of the huge use cases that will help cryptocurrency in general become mainstream is gaming there’s so many people that are gamers in the world that if you can help out with those micro payments with in-game purchases and upgrades this will really help the the use case for cryptocurrency in general so what are the different types of cryptocurrency Bitcoin is the most widely used cryptocurrency everyone knows that name is a generic name that’s used but again there’s over 3,000 crypto currencies and you know this is kind of a generic here but it says other crypto currencies are also known as alt coins which refers to any currency that is not Bitcoin or aetherium includes star Tron salt them in a Mesa go you like I like the ones they picked and left out include stellar but they don’t include XRP the third largest by market cap in Tron TRX that are like out of the top ten anyway I don’t know what salt is off the deal research and of course I’ve heard of mostly mostly go music oh but over time even though they’re called alt coins I’m sure the individual projects will kind of stand on their own name because right now ripple with their digital asset XRP they’re standing on their own as well they just got an influx of 200 million dollars in venture capital funds that actually value the company ripple at ten billion dollars so over time these companies and coins will be standing a stand alone versus all called quote all coins now Facebook in conjunction with a set of partners is introducing the Libre coin which is different from other cryptocurrencies the code is governed by said partners and is tied to the fiat currency of government bonds and fiat currencies including the US dollar euro and yen so what is an ICO we all know what an ICO is but for the newbies let’s go through it for them an ICO is an initial coin offering and similar to an initial public offering just like stocks but tokens are being offered rather than stocks in the ICO the public exchanges money the public exchanges money for tokens which are acknowledgment that the contract between the buyer and issuer has been fulfilled and the buyer then owns the coins are tokens representative of a valued tied to the entity with price fluctuations to vary degrees usually depending on the state of the organization so our cryptocurrencies securities and you know good lawyer answer that depends digital assets may or may not be security securities are negotiable financial instruments used by a company or government to give ownership rights debt rights or rights to buy sell or trade an option Bitcoin for example is typically not defended as a security since it has no centralized governance and the price fluctuations are mostly from supply and demand not tied to the success of a company or centralized organization however some digital assets can be seen as securities under various frameworks and therefore are subject to various SEC guiding guidelines and regulations and beyond that that’s deeper on that whole discussion and that’s why crypto currencies in general need regulatory clarity so they will foster additional innovate because right now some institutional players and banks they can’t really hold cryptocurrencies because the uncertainty in the regulation so there needs to be some regulatory framework so that this space can flourish they can show their use case people can hold them institution players etc and banks in financial institutions so there’s a lot more involved with this piece here so what is the difference between Bitcoin and blockchain well bitcoin is a decentralized digital asset arguably the most popular and typically takes up half of all digital asset trading volume on most given days now Bitcoin utilizes blockchain technology and blockchain is not a crypto currency it is the ledger that records all of the crypto currency transactions that are verified by cryptography and it’s open secure and accessible by all anyone can make a transaction and sign up with a private key it will be broadcasted to the unconfirmed transactions pool and verified by miners who will get the fee from it as a rorg each new block with transactions transactions is approved by consensus mechanism and it cannot be reverted after a certain amount of time six blocks for Bitcoin the main difference is that Bitcoin has proof-of-work consensus and also uses a specific model of transactions blockchain technology does not have any strict restrictions on consensus transaction model and data that will be transferred in it for example enterprise blockchain systems are used to build the supply chain without any financial data in it so once Libre is created will Bitcoin disappear not at all while Facebook is touting Libre as a cryptocurrency it is more of a stable coin it’s expected to have low volatility since it is tied to currencies such as the US dollar or the gold as the saying goes a rising tide elevates all boats and Libra will be the rising tides that brings crypto in the mainstream so even if you Graham even you’re grabbing up you talk about and that’s true that’s one of the big things I know there’s been a lot of pushback and consternation about when Facebook announced the Libre Libre coin a few months back there are some sessions and Congress challenging it and I I know there’s some partnerships that have already dropped out of the Association but guess what it did it got people talking about crypto currencies more so if they figure this these issues out get through their regulatory hurdles and let’s say in a couple years there they’re actually to market and have a product out there it’s just gonna bring everybody up because it’s everyone’s talking about it Facebook along with its partners has greater visibility than Bitcoin and bring this brings attention well your grandmother become a Bitcoin miner now she’ll try just by Libre because it’s from the institution she understands unlike the 18-49 gold rush Bitcoin mining is done by high-powered computers solving complex mathematical equations that result in the creation of new coins Bitcoin will remain the asset of choice for those who want cryptocurrencies that’s first to market decentralized and determined by the people the lack of governments though is scary to some is exactly the appeals to others is where the laws libertarians come in exactly Bitcoin and Libra will continue to have different purposes and it says space is not the final frontier as cryptocurrency has created a new frontier it is the combination of banking currency trading in international commerce in the increasingly global world of business the ability to transfer funds securely and quickly around the world makes the need to explore this frontier all that important and it’s so true we hope more and more people explore this world more retail investors explore this world over time you know we’re not investment advisors but if you dip your toe into this in this realm you know be sure you only put out money that you can’t afford to lose and you know we’re not again we’re not financial advisors but that’s what you should do and we’ll see what happens over time this is a good looks just a little introduction to an investor or person that’s brand new to the crypto space so thank you for tuning in to the cryptocurrency portal please share this with newbies that you know or beginners that you know we’re gonna actually in the comments section below we’re going to probably post some links to some of our other beginner based crypto videos that we’ve done over time and you can check those out and view those at your leisure and we’ll also put down there our review of Satoshi nakamoto’s original Bitcoin paper that he did 10 11 years ago Flowery 11 years ago now obviously the Satoshi Nakamoto just Bitcoin in general was the just the genesis of the crypto revolution so we’ll put that in there in the comment section as well so check those out and if you have any comments please leave them in the that section below because we can have the discussion in the community about just what’s on your mind about Bitcoin what we should be telling newbies and just your thoughts on cryptocurrency in general so again thanks for tuning in to the cryptocurrency portal if you already subscribe to our channel we deeply appreciate it if you’re not hopefully we’ve earned your trust and we’d be honoured with your subscription to the channel please smash that thumbs up button if you like this video because it really helps us out helps with Google algorithms and all that and again thanks again thank you for turning into the cryptocurrency portal have a good one [Music]