I was listening to the latest episode of Diggnation (which is back and awesome!) this morning, and the topic of digital currencies came up several times. This prompted a thought on how we talk about cryptocurrencies as “digital” currencies.

All currencies are “digital” at this point. Societies around the world have been using representations of state-backed currencies for decades now. I feel like it is more appropriate to discuss cryptocurrencies as “stateless” currencies. That’s the big difference between a state-backed currency and a market-driven cryptocurrency.

At the end of the day, all currencies are representations of perceived value. It’s up to you to determine which perceived value gives you most comfort and confidence.