News & Insights

Welcome to the FIA News & Insights, a one-stop resource that includes insights from senior investment professionals on timely market events, their views on the economy and their respective markets.  Find updates on the latest media information on Frost Investment Advisors, LLC and the most recent reprints, as well as, archival information for your reference.

Thought leadership image.

What Are Cryptocurrencies?

Olivier Dardant, CFA® | March 18 , 2022

What Are Cryptocurrencies?

Cryptocurrencies, referred to as cryptos, are digital currencies not controlled and/or regulated by any government or agency. Two things define cryptos: a lack of central authority and/or regulation (DeFi, or decentralized finance) and the blockchain.

• Cryptos are decentralized. Anyone from anywhere can join the network through decentralized applications (dApps), and cryptos allow for some anonymity as users are not required to identify themselves.

• The blockchain is a ledger of all transactions that have occurred chronologically. Instead of being stored in a central location, every computer that is a part of the network (running software called bitcoin client in the case of bitcoin and etherscan.io for ethereum) stores and validates the information constantly. This allows thousands of different computers to validate the authenticity of a transaction before it's accepted into the ledger. This also removes the need for intermediaries in transactions.

Click here to view full article.

Subscribe to our News & Insights

Get the latest posts straight to your inbox