How Cryptocurrency ACTUALLY Works | Crypto vs. Real Money

– Cryptocurrency is a word that has probably been in your ear and on your feet a lot lately. When we see it, a lot of us probably give that same, I'm gonna act like I know what this means when I really don't type a nod. But don't worry, I'm gonna
break it all down for you so you understand what crypto actually is and how it differs from real money.

My name is Tory, and if you wanna stay up to date with all the emerging tech
trends, click the link below. Here is what you need to know. Cryptocurrency is 100% digital money. It's different from real money because it doesn't have a government or direct institution that controls it, AKA no middleman. Cryptocurrencies can be
spent and received securely by anyone, anywhere, at any time throughout the entire world. There are well over 2000 different types of cryptocurrencies, but the most popular ones
are XRP, Litecoin, Ether, and the original, the OG, the crypto that started at all, Bitcoin. Now you may be looking at each of those and thinking to yourself, "How is one digital coin
worth 48k, like I don't…?" So, in a land before money, bartering was the name of the game.

The only way to get something was, I'll trade you my cup for your
bowl, but I don't wanna bowl. So we started trading shiny silver. That way, if you wanted to
trade but didn't want my bowl, you can still trade for something of value with what you received instead of just being stuck with the bowl Unless you have a lotta cereal, then… then the bowl is for you. It got to the point where
banks came along and said, "Hey, this legal tender "now represents your
shiny silver and gold. "You can carry a lot of it around without even hurting
your backs, it's awesome, "look at it, here. "Now introducing, fiat money." Great for making it rain,
but bad for security. One of the big problems
with this type of money is that it is easily corruptible. Because there will
always be a digital trail with authenticity, cryptocurrency however, not so much.

Two major ways for acquiring crypto are either buying it or creating it. Bitcoins, for example,
are created by miners. Mining for crypto is
a proof of work system where miners run complex, energy
guzzling computer programs that solve even more
complex math equations to validate every single
cryptocurrency transactions. This in part, helps generate
what we know as cryptocurrency, Bitcoins, et cetera. The name comes from mining, which is like getting any
other natural resource. Scarcity is the name of the game because there's only so many Bitcoins that can actually be mined. And as of today, we've already gotten
over 18 million of 'em. Once it is successfully mined, the crypto can be stored
in a digital wallet. This wallet can live
on your phone or online on a piece of hardware, or
right there on your desktop. Think of it as a Apple
Wallet, but much bigger. Are you or someone you know
suffering from P-C-R-M? Hi, I'm Tory from HubSpot and
P-C-R-M is no laughing matter. – [Narrator] Symptoms include,
losing track of prospects and reports that don't make any sense. – But finally, there's help with HubSpot, the number one CRM platform
for scaling companies.

HubSpot helps you adapt
quickly, align your teams, and achieve adoption like never before, and you can get started now for free. Stop letting leads slip
through the cracks. Sign up here. We can help. Can you turn your
cryptocurrency into cash? Yes. You can do this through an exchange or a peer-to-peer network. With an exchange, you can
deposit your cryptocurrency and request a withdrawal in
the currency of your choice. The downside to this option is that it takes four to six days to even reach your account, which kind of defeats
the purpose of, you know, instant, digital. While getting your money
through a peer-to-peer network is definitely quicker, it is not as easy as walking
up to the roulette table, throwing your hands up,
and pulling your chips off. It goes like this. You put real money into buy crypto. Your real money then becomes crypto. You now own crypto, congrats. You then have to sell your
crypto to someone else in exchange for the real
money in order to cash out.

Then you can either transfer
your funds to your bank or you can decide to buy more crypto. After that, moving it to a bank account is the same kinda process as converting currencies at the airport when you arrive to a new country. So at the end of the day, yes, you will be able to convert your crypto back into real money. In some cases, it will
just take some time. Now, if you're a marketer,
the amazing thing for you isn't just the cryptocurrency
revolution itself. While it could definitely
be an awesome investment, the true star of the show here is some of the awesome
technology behind it. I'm talking about the one
that generates the transaction and holds the information,
and secures your data. It's all held together by
the almighty blockchain. Blockchains are a new type of database that store information in blocks. The blocks are then linked
together through cryptography. When new data comes in,
it's put into a block and then it's changed
onto the previous block in chronological order. Different types of information can be stored onto a blockchain, but the most common use so far has been a ledger for
digital transactions.

Decentralized blockchains are immutable, which means that the data
entered is irreversible, linked, can't break it up. For Bitcoin, this means that transactions are permanently recorded
and viewable to anyone. – [Narrator] Blockchain
is an electronic ledger with some nifty security features. It's a record-keeping technology that's nearly impossible to tamper with. – So impossible in fact that JPMorgan decided
to get in on the wave. JPMorgan announced that they
are using blockchain technology to improve the way banks
transfer money internationally. Sometimes, you can't buy something because of a payment error. This new blockchain-fused
solution called Confirm will help solve this problem immediately. It'll make sure that
people's bank information is correct and secure.

This means fewer rejected
or returned transactions caused by mismatched payment details and lower costs for banks. If you're in business or marketing, this is a great tool to consider. It feels like every other day
there's a new story about… – Well new tonight, one of the biggest ever data breaches affecting Capital One and its customers. The bank says in March, a hacker gained access
to personal information from more than 100 million
credit applications. – Crypto and the blockchain
technology it's secured to can provide a level of privacy for data that you and your customers
have only ever yearned for. When it comes to cryptocurrency, you're probably watching
this video right now and you either think
it's a hot air balloon that's about to pop or it's something that is providing a peek into the future of currency.

Whatever your thoughts are, make sure you comment
below and let me know. As always, if you'd like
to always be in the know in regards to new terms or pieces of tech that you
need to be in the know about, make sure to click the
link in the description for our offer on emerging
tech, it's, mwah, wonderful. We've put together a
resource list of blogs, podcasts, and newsletters to help you gain a ton of insight and stay up to date. Until next time, leave a like
at the door before you go. Bye-bye. I'm gonna roll away, roll backwards. I rolled in, I'm gonna roll out.

Crypto and the blockchain
technology it's secured to can provide a level of
provizy, of provizy? Now you probably had privacy,
but have you had provizy?.