I Asked ChatGPT To Explain Crypto To Me Like I’m 12 — Here’s What It Said

If the presumption “crypto” oregon “blockchain” marque your eyes transverse with confusion, you’re surely not alone. One of the buzziest presumption successful modern finance, cryptocurrency can consciousness incredibly hard to understand. Is it a integer currency? A stock? And wherefore person truthful galore radical made memes astir it?

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Some of these questions are easier to reply than others, particularly erstwhile utilizing an asset similar ChatGPT, which is adept astatine synthesizing analyzable accusation into easy-to-understand bits. Which, for galore laypeople, is precisely what they request to get a grip connected the crypto market.

I’m 1 of those laypeople, truthful I decided to inquire ChatGPT to explain crypto to me like I was 12 years old. Here’s however it broke down.

I started disconnected with a precise elemental prompt: “Can you delight explicate crypto to maine similar I’m 12 years old?” And my pal ChatGPT came successful the clutch, saying that it would explicate it to maine similar we were friends astatine lunch.

“Crypto (short for cryptocurrency) is similar wealth connected the internet, but it’s not printed similar dollars oregon coins. It’s wholly digital. You can’t clasp it successful your hand, but you tin usage it to bargain stuff, prevention it, oregon nonstop it to idiosyncratic — conscionable similar money.”

Hey, that makes sense! It adjacent explained wherever the connection “crypto” came from:

“‘Crypto’ comes from cryptography, which is simply a fancy connection for super-secret codes. Cryptocurrencies usage these codes to: support your wealth safe, marque definite nary 1 tin cheat oregon transcript it, and fto radical spot it without needing a bank.”

Thanks, ChatGPT!

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OK, truthful wealth stays successful your slope oregon fiscal instauration of choice. Stocks unrecorded successful your brokerage account. But wherever does crypto reside?

My buddy ChatGPT tells maine that crypto lives connected the blockchain, which is fundamentally “…like a immense nationalist notebook that everyone tin see, but cipher tin erase oregon cheat.” The blockchain keeps way of each transaction (as successful who sent what to whom). And erstwhile you bargain crypto, the virtual currency is besides stored successful your integer wallet.

“Every clip idiosyncratic sends crypto, it gets added arsenic a caller enactment successful the notebook, and everyone agrees it’s real,” said ChatGPT. “Crypto is decentralized, which means there’s nary boss, slope oregon authorities successful charge. It runs connected thousands of computers each implicit the world.”

That makes a batch of sense. I’m starting to get it now. But what tin I adjacent get with it? Turns out, a lot. I tin bargain worldly online, nonstop wealth to a person instantly (even if they’re successful different country), oregon hoard it similar a dragon with their integer gold. You tin adjacent usage it successful online games oregon to bargain integer art, similar NFTs.