Cryptocurrencies such as bitcoin and ethereum are popping up everywhere. But many Americans may not completely understand what they are.

As governments around the globe struggle to legislate on this new digital money, it can be useful to know exactly what’s going on.

Heritage Foundation research fellow Peter St. Onge, an economist, says he sees incredible possibilities for a future with various forms of cryptocurrency.

"You could replace the entire insurance industry with a couple of lines of code, and then you could run those on something like ethereum, so the concept of cryptocurrency is astoundingly powerful," St. Onge says. "The main application most people are aware of is bitcoin, but there are many, many applications. We've only just begun with it."

Unfortunately, governments seem intent on limiting cryptocurrencies.

"There are a number of government agencies that have been trying to either harness bitcoin or to destroy it intentionally and they haven't really resolved who's the top dog on that hill," St. Onge says. "It has created an enormous amount of regulatory risk within crypto."

St. Onge joins "The Daily Signal Podcast" to discuss what the future holds for cryptocurrencies and what you need to know.

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