Book Review From Rick's Library: Cryptocurrency-How Digital Money Could Transform Finance by Gian Volpicelli

Hi, I’m Rick Barron, your host, and welcome to That’s Life, I Swear

Since 2009 when the first decentralized cryptocurrency, Bitcoin came into view, the world has been mesmerized by the topic. We hear new jargon such as Blockchain, Bitcoin, stablecoin, mining, smart contracts, crypto exchanges. What does all this mean? The history and other crypto jargon can be explained in a book I read recently on what this new digital currency is about. The name of the book, Cryptocurrency-How Digital Money Could Transform Finance.

Let’s jump into this.

Ok, let’s talk about this book

Sam Bankman-Fried. Courtesy of: BYTWORK

As of late, the headlines have been filled with the Crypto currency world collapsing, thanks in part to watching Sam Bankman-Fried’s company FTX tank. FTX experienced a crisis in late 2022, which led to a collapse in FTX's native cryptocurrency, FTT.

Since then, people’s interest has peaked ever more trying to understand what the hell is Cryptocurrency? What’s the buzz about this phenomenon? The past decade has seen cryptocurrency's relentless rise as an alternative digital currency. But what precisely is it and what potential does it have to change the world of money?

Let’s start off with a definition of Cryptocurrency. 

Cryptocurrency is not what one would call traditional currencies. In terms of government-controlled currency, the U.S. dollar, the Euro or Yen come to mind. Now the difference here, and a big one, is that a central bank system backs up the three I just mentioned. With Crypto, the backup comes from the technology called the Blockchain and the community. 

Now Blockchain is a whole different topic that I’ll cover in a future episode.

2008 Financial Crisis. Courtesy of: Promarket

The people who started Cryptocurrency, such as Bitcoin, wanted to avoid repeating the devastating 2008 financial crisis. The goal was to have a independent parallel financial system that would be the new financial system going into the future. This new financial digital system would lend itself to easier transfer of digital funds, and not reliant on any central authority, such as a government or bank, to uphold or maintain it. Ah yes, paradise at its best.

Simple, right? 

That’s where the book written by Gian Volpicelli comes in, Cryptocurrency-How Digital Money Could Transform Finance. As I read the book, I found with great interest the history of how Crypto got started. The ultimate goal behind this movement is that cryptography [another buzzword] would erode the relevance of national laws and regulations in cyberspace. In short, no middle man.

Gian Volpicelli's book. Courtesy of Amazon

Being a novice about this topic, I found all five sections covering topics such as Bitcoin and Ethereum written in a manner that it didn’t confuse me and was helpful providing a good background to what these crypto currencies are, their origin, context and
why / where they offer value.

So, about the author 

Gian Volpicelli. Courtesy of Amazon

Gian Volpicelli is Technology Reporter for POLITICO Europe. He was a Senior Writer and Editor for WIRED in London, covering cryptocurrency and technology regulation. During his time at WIRED, he published the book mentioned in this episode. His book was nominated for the British Society of Magazine Editors’ talent awards for his investigative reporting and editing of WIRED magazine’s “Start” section. 

He grew up in Rome, and received a master’s degree in journalism from City University of London after studying politics and international relations in Rome. Besides writing, Gian speaks four languages: English, Italian, Spanish and Russian. When he’s not busy typing away at the computer keyboard, he relaxes by playing the saxophone in his spare time.

What drew me to reading this book?

Like everyone else, when it came to knowing anything about the Crypto world, it was zero. So after thumbing through the pages, I thought, finally, here’s a book that demystifies what this world is all about.

After hearing about the rise of Cryptocurrency as an alternative form of digital cash, I found this book to be a great introduction to this world.  

The author does a great job in defining the peculiarities of Crypto. He defines it from a basic middle school approach explaining what this new digital currency is all about. 

The book lays out the history of how Crypto was developed and in layman’s terms, does a very good job in explaining how it operates. As for all of the buzz words that come with the Crypto world, such as blockchain, Bitcoin and stablecoin to mining, smart contracts and forking, the author provides a simple glossary covering all of the key terms discussed in the book.

Facebooks Libra project. Courtesy of: The Verge

In one section of the book, the author covers Facebooks [now Meta] attempt in entering the cryptocurrency arena with Libra. Right now, Meta is having enough problems so Libra has been placed on the shelve. 

One big question that still lingers with people: will Cryptocurrency really be that big movement that alters how we move towards a digital currency, along with the economic and social impact its followers claim it will be? The author shares his opinion, so you’ll need to read.

For me, the book covers all the key areas, and explains it all well enough for to walk away with a working knowledge about Cryptocurrency. 

From articles I’ve read in the newspapers and online, I wonder if crypto will manage to resolve the sustainability issues? Will the latest Chinese ban on mining and bitcoin have a lasting impact, or will miners just migrate outside of China? Will the Crypto world just go bust?

What can we learn from this story? What’s the take away?

If you know nothing about this Crypto world, then think of this book as a simple crash course about what it is and what it’s not.

It’s just enough information to give you a basic understanding. Once you finish the book, which is only 162 pages, you ought to understand the basic lingo and how digital money could transform finance. Finally, Gian Volpicelli breaks down in layman's terms, what precisely Cryptocurrency is and the potential it has to change the world of money.

With the recent FTX scandal, the jury is still out on the future of Crypto. 

You should know that those who are offering crypto asset investments or services may not be in compliance with applicable law, including federal securities laws. These investments also can be speculative, risky, and volatile.  Think the FTX scandal underlines those points. So, if you are considering an investment opportunity involving crypto assets, wondering if it is legal, is it right for you, or even whether it might be a scam, then this book will provide some light on the topic.

With recent happenings in the crypto world, like FTX, this book may help shed some light on what it is and if it’s really what it's cracked up to be. So, enter with caution when considering whether owning crypto investments are for you.

Well, there you go. That’s life, I swear.

For further information regarding the material covered in this episode, I invite you to visit my website which you can find on either Apple Podcasts/iTunes or Google Podcasts, for show notes calling out key pieces of content mentioned and the episode transcript.

As always, I thank you for listening. 

Be sure to subscribe here or wherever you get your podcast so you don't miss an episode. See you soon.