Cryptocurrency: What is Going On?

Cryptocurrency is defined as an encrypted data string that denotes a unit of currency. It is monitored and organized by a peer-to-peer network called a blockchain that also serves as a secure record of transactions. Unlike physical money (or issued currency by a government or bank), cryptocurrencies are decentralized, or not issued by a single entity. Cryptocurrencies are created and secured through algorithms that are maintained and confirmed in a process called mining, where a network of computers or specialized hardware such as application-specific-integrated circuits (ASICs) process and validate the transactions. The process incentivized the miners who run the network with the cryptocurrency. In podcast #35 Millennial Z and Boomer X talk about what has happened to cryptocurrency the last several months and several years while discussing the possible reasons for the movements of cryptocurrency. Should you be invested in cryptocurrency? Perhaps, but do it with as much information as possible! And only with money you can afford to lose. Far more volatile than the stock market, there are hundreds of different cryptocurrencies you can invest in. None have any real intrinsic value almost, but anything is as valuable as someone else is willing to pay you for it. But it's always up to someone else what that figure is. Bloomberg reported on May 16, 2022, that the selloff in cryptocurrencies exposes the big lie that Bitcoin's plunge is an uncorrelated asset in relation to the stock market. Bitcoin has lost well over 50% of it's value since it's high over $60,000, and lost more today. Other cryptocurrencies have also lost a great deal of value costing investors billions in just the last several months. 40% of the people who have invested in cryptocurrencies at all have lost money. Now, of course, that means 60% haven't, but those people invested years ago with far less money than is seen today. If you 've invested in cryptocurrency in the the last year, you've probably lost quite a bit. Even stable coins, who as indicated in the name, are designed to be stable and tied to a physical currency lost a great deal of value. This has happened before, such as in 2018, but now there are more institutional and well monied investors, and it stands to reason they are taking profits and limiting exposure. The fear is high in crypto markets which has caused many to "cash out". Despite the ability to print money 'as needed' we now have inflation to consider that seems continuing at very high levels; therefore there is only so much money to go around at the moment. And nobody wants to lose money. The stock markets have also dropped over the last several months with some good days. Where is this going? Well please listen to the podcast and subscribe!