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What is Money?

Watch this lecture to review what money is and how it works.

 

Unlike traditional money that is based not on a tangible asset (like gold), or on the faith of a government (like dollars), Bitcoin is a currency based on cryptography and algorithms. To transfer bitcoins, one uses keys and an algorithm. The currency is independent of banks and governments.

 

License

Icon for the Creative Commons Attribution 4.0 International License

ACC Principles of Macroeconomics by Lumen Learning is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.

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