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4 months ago

ISSUE6-NERDS

This mining also solves

This mining also solves an issue called the double spending problem. If I physically give you £10 then there's no question of where that money is. If I send you that money via a bank transfer, the bank is the authority on who has that money. Until the blockchain was invented, a digital token could be spent more than once because it could be copied like an mp3. CRYPTO EXPLOSION As the value of bitcoin increased, so did interest in the technology behind it. This has since spawned thousands of new usages for the blockchain and cryptocurrencies, with the latter being released on shiny unregulated trading sites. Some are great and some are atrocious scams, with the startup money coming from Initial Coin Offerings (ICOs). ICOs essentially let people crowd-fund new cryptocurrencies/technologies in a coin pre-sale. They're all the rage at the moment but are even riskier than putting money into a shitty kickstarter. A company will make a fancy new product that will ‘revolutionise an industry’ with the blockchain and a new cryptocurrency. To raise the money they'll let people buy some of their new cryptocurrency at a lower price. The company gets startup money and people get currency of a potentially great new technology before the value has exploded. ICOs have been used to fund some great projects but have also been used by trash like dentacoin. That's right, a cryptocurrency for fucking dentists. People PublicHouse "The moral of the story applies not only to crypto but to most things life: if it sounds too good to be true then it probably is, dumbass." have realised that crypto is so hot that idiots will throw large amounts of money into it without doing any research, the perfect environment for scams. Many people buy huge amounts of tokens in ICOs without that company even having shown a prototype of their app/service. It's worth pointing out that most people don't use the currency for what it’s intended for. Ether is meant to be used as a currency on the ethereum network, but I buy and sell it just like stock. I've never used an app using the network, but that's not how you make all this money! However, coins like bitcoin, litecoin, ripple and many others were just intended to be used as a currency. SCAMS Bitconnect was a perfect example of shitheads extracting idiots’ money. This service allowed people to buy bitconnect tokens (BCC) by depositing bitcoin and being guaranteed 91.25% profit each year with their trading algorithm. Many people pointed out that it resembled a standard pyramid-scheme, with huge incentives to refer friends and ridiculous amounts of potential profit with no risk. Turns out they were right and the whole thing was a big steaming pile of shit. 18

PublicHouse "Crypto is like stocks on steroids." When the news broke the value of the coin plummeted as crypto is only worth what another person is willing to buy it off you for. In this case bullshit equals just around $4. It's safe to assume the creators sold all their BCC and fucked off into the sunset. Hilariously in the days after its collapse, a lot of the top posts in the bitconnect subreddit were about legal action or suicide hotlines. My favourite had the title “Good luck trying to sue thin air retards” - brutal but makes a good point of how easy it is to scam idiots with crypto, there's no regulation or bank to hold your hand! The moral of the story applies not only to crypto but to most things in life: if it sounds too good to be true then it probably is, dumbass. If someone found a way of doubling an investment, why would they need you in the first place? WHERE TO GO FROM HERE Crypto is like stocks on steroids. It's stressful and you end up checking charts 100 times a day. I've made a lot of money in long-term investments and day trading, but I've also lost a bit (luckily much less than I've gained). A lot of economic “experts” persist that it's a bubble, all the while nerds across the globe are becoming millionaires. I'm not saying that it's crash-proof, but for the next few years I think there's a fair bit of money to be made if you play it smart. Hopefully the prices will settle down eventually and stabilise, allowing the technology to be used properly. No one wants to be paid their salary in bitcoin for example, imagine if your wages lost 30% of their value overnight! The best advice I can give is do your research, don't panic buy, don't panic sell and only risk money you're ready to lose. If you don't want to trade you can still learn more, go to coinmarketcap.com and check out all the new and interesting tech that’s about to shake up a lot of industries. Oh, and don't come blaming me if HSBC break your cunting legs because you blew all their money on stupid fucking dentacoin. Halstein 19

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