Cryptocurrency is exactly what it sounds like — digital currency, secured by cryptography, a method of protecting information and communications through the use of codes, making it virtually impossible to defraud.  I like to think of cryptocurrencies as virtual “tokens,” but in reality, they are systems that allow for secure payments via the internet and are represented by entering information into an internal system (network).

However, cryptocurrency is unique in the sense that it is generally not issued by any particular central authority, leaving them essentially immune to government interference. The level of security regarding these transactions, or blockchains, is extreme due to the use of several encryption algorithms and cryptographic techniques including elliptical curve encryption, public-private key pairs and hashing functions. Each of these methods differs in their reliability and efficiency. There is no denying, cryptocurrencies are revolutionizing the way we store money, pay for goods and services and conduct business, but with that comes pros and cons. 

Investing in this is quite a gamble — within a short window, prices can rise from $500,000 to $1 million and drop at the same rate. For people who desire instant gratification when it comes to investments, cryptocurrencies are ideal. It is common knowledge that when it comes to investing, it is crucial that one diversifies their portfolio, and the same goes for virtual money. Although investing in cryptocurrency is a gamble, it is ultimately worth the risk.

Masters students are a part of the next generation—we will be running the world in the foreseeable future. Being informed about the ever-increasing prevalence of cryptocurrency will be beneficial in managing our global economy. As technology advances, this topic will only become more relevant to individuals interested in investing and furthering wealth-management.