Question: How is cryptocurrency different from U.S. dollars?
Answer: There are several differences. The government does not back cryptocurrency accounts. Cryptocurrency is held in accounts not insured by the government, unlike the U.S. dollar, which is deposited into an FDIC-insured bank account. So, the government has no obligation to help cryptocurrency holders recover funds that have been lost or stolen. Also, cryptocurrency values change constantly, even by the hour, so cryptocurrencies tend to be more volatile than traditional investments, such as stocks and bonds.
