When You Send Crypto, the Money Never Actually Moves
26 Oct 2026 · 1 min
1:10
In this short video, Alexander Lorenzo explains that blockchain transactions do not involve the physical movement of money. Instead, the blockchain maintains a complete, immutable state of all accounts from the chain’s inception, and each transaction simply reassigns ownership of that existing state to a new holder. He uses a vivid rhinestone analogy: a massive, immovable rock represents the total value, and when someone pays another, they transfer ownership of the rock rather than moving the rock itself. This illustrates that, unlike cash changing hands, crypto funds remain in the same place on the ledger while the recorded ownership changes, emphasizing the importance of the full chain state for understanding how crypto works.
