Understanding cryptocurrency is not as difficult as it seems. If you understand how money works then you understand Bitcoin and cryptocurrency. The two are not separate but closely connected and there is a huge currency movement occurring. The US dollar will no longer be the standard from which other currencies are measured. Cryptocurrency is the money of the future and it works in the same way. Below is an explanation that attempts to explain the correlation.
The US Dollar
Since World War II the US Dollar (USD) has been the currency by which other currencies are measured. This makes it the “global currency”. We all know that when exchanging money between different currencies there is an exchange rate. That rate fluctuates. This is the currency market. Corporations and investors “play” the ups and downs in exchange rates and manipulate the price of currency. The USD is being manipulated downward.
Bitcoin is a digital currency. It is identical to a USD with the exception of the physical note. Modern banking has provided us with quick, reliable digital access to our money. Most individual do not physically possess their money. You are already participating in a digital currency system. Bitcoin is the next step in the digital currency revolution. It is the full transition away from physical notes. The basis of the system is the same as our current methods. The significant difference is that it is entirely a free market. No single government has control over its exchange rates or total market value. This is what makes Bitcoin and cryptocurrency “The People’s Money”.