10 cryptocurrency terms people use every day that you need to know, too

Despite Bitcoin launching way back in 2009, it’s only until recently that you can’t turn on the news or browse the web without coming across some mention of cryptocurrency.

I got so many questions from my readers and national radio show listeners that I wrote an eBook about crypto to help. I demystify digital currency, mining, and how to get started trading. Tap or click here to get your copy on Amazon.

Sadly, I also hear from people who got fooled by one crypto scam or another. Where there is money, criminals are waiting. Tap or click for five clever crypto scams making the rounds right now and steps to stay safe.

Before we get started, know this is not financial advice. The crypto world is volatile, and you should never risk money you aren’t comfortable losing. Now, let’s take a look at some of the most common lingo.

1. Blockchain

Every cryptocurrency transaction is processed, verified, and recorded on a virtual ledger known as a blockchain. When time someone buys or sells using cryptocurrency, another entry is made on this virtual ledger.

Think of the blockchain as a series of boxcars from a train. When a cryptocurrency transaction is made, another boxcar gets added to the train.

The blockchain is decentralized. This means it’s not stored on one machine or even across one network. Instead, the blockchain exists on computers all over the world that are accessible because of the internet.

People and companies help verify each transaction that gets added to the blockchain using their own computer’s processing power on a decentralized peer-to-peer network. Each transaction is timestamped, individually encrypted, and cannot be reversed or changed. Yes, you read that right — crypto transactions cannot be reversed.

2. Fiat

I know what you’re thinking: “I thought a Fiat was a car.” Not in crypto-land. Fiat money is government-issued currency. If you’re in the United States, that means the U.S. dollar. 

Cryptocurrency, on the other hand, is virtual money. 

Continue reading

We may receive a commission when you buy through our links, but our reporting and recommendations are always independent and objective.

Need a brain break? Visit Wonders of Street View, an interactive map of some of the wackiest stuff on Google Maps in one place. Click “Random” in the top right corner for a new wonder. I spent too long exploring an abandoned mining town in Beaverhead County, Montana.

🤠 A Texa-llent idea: Remember the winter storm that left millions of Texans without power? The state is now requiring all crypto miners, big or small, to register. Any unregistered mining outfit that consumes over 75 megawatts (that would be like charging 1,500 Teslas at once) is looking at fines ranging up to $25,000 per day. That’s one big mine!

Focus on the positive: Huge deposits of lithium have been found in Arkansas, and it could reshape the world’s energy future. The resource was in short supply, but estimates suggest there could be between 5 million and 19 million tons buried there. That’s enough to meet the projected global demand for lithium car batteries nine times over.

Smoke and mirrors: The fourth bitcoin “halving” just slashed mining rewards in half — from 6.25 to 3.125 per block. Translation: Bitcoin will become 50% harder to find. This is the oldest marketing trick in the book. As it gets rarer, it becomes more valuable, and more people buy in at that increased price … until they stop buying altogether and it all crashes. Remember: The intrinsic value of bitcoin is exactly zero.