Crypto Money

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Crypto Money is money that relies on cryptography for its expression, movement, and storage.

Traditional forms of money like cash, checks, and payment cards can be traded without having to use cryptography (while data that represents such money can be crypto treated like any data).

Read more in The Money Academy

In principle the increased involvement of cryptography in payment and banking is very promising, but the road for a pronounced success is long and torturous; over many years good results are expected. But the current (2013) ecstasy over Bitcoin is way overplayed.

Crypto Money can be self-valued, or derived-value type.

Self-valued crypto money generates value and scarcity through cryptographic intractability

Cryptographic intractability is erosive, it melts away in an unpredictable pace that increases with the value of the money generated by this intractability. Traders may prosper in the short run, and risk a total meltdown in increasing likelihood.

Derived-value crypto money uses cryptography to transform a money entity defined elsewhere, and endow it with crypto attributes for security and convenience.

The wealth and value of derived-value crypto money cannot melt away through a cryptographic glitch because the value and the wealth is anchored on the money entity that the crypto money is crypto-expressing.

* Version CE-H6703 (SERVER) Crypto Academy