In episode 2 of the Let's Talk Crypto podcast we take a look at the sometimes confusing crypto terminology used in the cryptocurrency space.
In episode 1 we talked about what is Bitcoin? Bitcoin, like many other technical fields comes with its own vocabulary, which can be somewhat intimidating for new users. In this episode we break down the terms you may hear and help you understand the terminology used in the crypto world so you can get started quickly and confidently.
We Chat About:
- Common Crypto Terminology
- Why Tom suffers from FOMO
- BULL vs BEAR - Who's the winner
- Public vs Private Keys - What's the difference ?
Address - Location on where to send your coins. Also called your PUBLIC Address. Similar to your Letter Box. Public Key Private Key
ASIC - Application Specific Integrated Circuit (Exactly what it is, specifically designed for the BITCOIN SHA256 algorithm)
Bull market - Where prices are rising or expecting to rise.
Bear Market - Falling prices and shrouded in pessimism.
Block Chain - a digital ledger in which transactions made in bitcoin or another cryptocurrency are recorded chronologically and publicly.
Crypto - Short for cryptography. Short version is scrambling plain text into cipher text to secure the information. The science of coding and decoding to keep messages secure.
Encryption - The use of cryptography to encode a message such that only the intended recipient(s) can decode it. Bitcoin uses encryption to protect wallets from unauthorized access.
Exchange - This is where you exchange normal $$$ for Crypto Currency (ie buy BITCOIN) but you can also trade different currencies. Similar to the stock market.
FOMO - Fear of Missing Out
FUD - Fear and Uncertainty and Doubt
“Fear, uncertainty and doubt (often shortened to FUD) is a disinformation strategy used in sales, marketing, public relations, talk radio, politics, religious organizations, and propaganda.”
GPU - Graphics Processor Unit (Video card found in computers but in this instant HIGH End gaming cards as they have high processing and fast memory speeds onboard)
Hash Rate - How many Hashes per second. Hash function is a mathematical process that takes input data of ayn size, performs and operation on it, and returns output data of a fixed size. It's a measure of how many cryptographic calculation per second, which affect your rewards.
ICO’s - Short of Initial Coin Offering. Compared to IPO (Initial Public Offering) conventional world where companies offer shares in their business.
P2P - Peer-to-peer. This ‘new; digital currency network is designed for each one of us to be our own bank. There is no 3rd party involved.
PONZI Schemes - This operation generates returns for older investors through revenue paid by new investors, rather than legitimate business activities or profit of financial trading. We need to LOOK OUT for these. There are many surfacing and closing all the time.
Public Key - Is like to your PO Box or post box. Publicly known and visible and people can make deposits
Private Key - Special key that controls access to the mailbox. ANYONE with this key can access your mailbox (ie Wallet) so KEEP IT SAFE !!! ALWAYS.
Satoshi - The smallest divisible unit of one bitcoin. There are 100 million satoshis (8 decimal places) in one bitcoin. One satoshi = 0.0000001 bitcoins.
Wallets - This is where you store your currency (coins). Certain wallets support certain coins and will have some upcoming reviews in future episodes.
Links Mentioned In The Show
- For a Full list of terms, refer to our GLOSSARY
Get started with CRYPTO today