Types of cryptocurrency and discussion on crypto typology

Hello folks,

I started wondering about different types of cryptocurrencies in the rapidly expanding world of “crypto” and proper terminology to really capture for myself the essence of the currency described. It seems that an overarching term “cryptocurrency” brings certain confusion by denoting so many different assets by a single term which fails to capture the essential features of concrete “cryptos”. For example, currencies like Cardano or Bitcoin, IMO, should be called “decentralized (crypto)” currencies, in this way underlying their key feature of standing in opposition to currencies issued by central banks. They could also be called “fixed” or “transparent” currencies in this way emphasizing transparency and rigidity of their monetary policy. Cryptocurrency like Libra, would be more properly called a corporate crypto currency, since it is issued by a corporation. And digital Yuan or Dollar is nothing more than digital fiat currencies established by the respective central banks. At this time, all these projects with radically different features and political agendas are subsumed under a single term of “cryptocurrency”.

What are your thoughts on that? By which typology you make sense of the different cryptos and how do you define them for yourself?

Hi @Andrius_Bugakovas, first and foremost welcome to the community.

You bring up some thought provoking concepts around terminology, I agree that it isn’t the most descriptive title, crypto currency and indeed for the none follower of the market i see it would create some confusion.

However the individual, in my opinion, still would be confused in some aspects, as they would still need some fundamental knowledge of the current standard financial system as a basis to grow there understanding of the differences. :vulcan_salute: