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<p>[QUOTE=&quot;Kurisu, post: 6422901, member: 117063&quot;]I&#039;m pretty good at over-simplifying things...it&#039;s a genuine skill of mine.</p><p><br /></p><p>Crypto is complicated. So is actual cash to be honest if you really understand how it works. Cash has value because it is backed by assets.</p><p>Crypto has value because it is rare.</p><p>Each Crypto is designed to only ultimately have a certain number of &#039;cryptos&#039; in existence as it&#039;s electronically &#039;mined&#039;. With an exponential curve making it more and more rare as more of each Crypto type gets created (mined).</p><p><br /></p><p>As crypto is more widely accepted and adopted as a method of payment it will slowly merge with the concept of cash in the sense it will become more and more backed by physical real-world assets.</p><p><br /></p><p>Visa in their recent shareholder meeting understands that crypto has &#039;value&#039; so they simply announced that they are looking to integrate their 50 million or so places where Visa is accepted to start working with (certain) Crypto currencies.</p><p>Some of the largest banks on the planet are doing something similar as they figure out ways to &#039;hold&#039; Crypto currencies backed by assets, which is what they do with cash right now (in theory, not always in practice).</p><p><br /></p><p>So the short version of the Crypto story is that as Crypto currencies become accepted as payment methods they will also have actual value in banks and thus in economies as well.</p><p><br /></p><p>An obvious fear is the concept of where Crypto exists, because it isn&#039;t physical and can&#039;t be held in a vault like bullion or as land or property...but that concept is changing for all humans who use a cellphone... your electronic property is in fact your property. So again, me over-simplifying things...redundancy is the answer.</p><p>All computers and servers and data-centers on Planet Earth would have to be wiped clean in order for us to loose all our electronic properties (email, photos, etc...).</p><p><br /></p><p>On that note, Crypto currency provides a way for you to put your Crypto literally in a vault, on a usb drive! It&#039;s a wallet that is electronically tied to the entire electronic structure and amount of a particular Crypto currency (it&#039;s literally an electronic key with an absolutely enormous multiple parts password). It&#039;s not conceptually different from your bank account that doesn&#039;t actually exist as a pile of money behind the counter at your bank. It exists as an unalterable record of the Crypto you &#039;own&#039; and it is similarly tied to your actual identity (Social Security number and personal information).</p><p><br /></p><p>There is no doubt, Crypto currencies will come and go and some will far outlast others, just like currency in various nations...but as Crypto merges with economies just like cash does, Crypto will be much easier to use and hold safely...whether it&#039;s in your bank&#039;s &#039;wallet&#039; or your own electronic &#039;wallet&#039; on some form of electronic removable storage.</p><p><br /></p><p>So long story short...Cryptos are fairly volatile at the moment because their value is not entirely connected to world economies, it&#039;s a virtual rarity, similar to gold or platinum (physical rarities)...which also used to be far more volatile but have a genuine value based on rarity and use in industries...</p><p><br /></p><p>So, in summary...wait for it! Or, like any other money you are willing to reasonably risk, like buying stocks and holding them long-term, you can start to learn a little bit about it and dip your toe in the Crypto currency thing. Just like collecting coins...you really don&#039;t want to spend any more than you can pleasantly afford for a hobby as you learn it. And like coin collecting, or the stock market, you have a learning curve that enlightens you along the way. And also just like these things, some will get &#039;lucky&#039; and make more money than others. The sure thing is still developing valuable skills and working for a living!!!</p><p><br /></p><p>As banks and payment systems help stabilize crypto currencies world-wide it will become easier to exchange crypto for cash and either for assets. Just like a credit card payment, the vendors get a little piece of the action via credit card fees which are theoretically unseen by the consumer because it&#039;s built into the prices you pay for your stuff. So right now when you &#039;use&#039; or trade or buy Crypto you get charged a fee for the electronic exchange because yes the businesses providing the services of providing Crypto need income to exist... Am I making sense here?!</p><p><br /></p><p>I hope that helps in a simple conceptual kind of way! <img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie85" alt=":smuggrin:" unselectable="on" unselectable="on" />[/QUOTE]</p><p><br /></p>

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