How Crypto Currency Works email from a friend | 12/8/2022 | not shown Posted on 12/8/2022, 12:00:20 PM by sodpoodle
I haven't invested in crypto currency because I don't understand how it works. Now after reading this I understand.
How Crypto Currency works... an analogy in Layman's terms.
Not long ago a merchant found a lot of monkeys that lived near a certain Village. One day he came to the Village saying he wanted to buy these monkeys!
He announced that he would buy the monkeys at $100 each. The villagers thought that this man must be crazy - How can somebody buy stray monkeys at $100 each? Still some people caught some monkeys and gave it to this merchant and he gave $100 for each monkey. This news spread like wildfire and people caught monkeys and sold them to the merchant.
After a few days, the merchant announced that he will buy monkeys at $200 each. The lazy villagers also ran around to catch the remaining monkeys! They sold the remaining monkeys at $200 each.
The merchant then announced that he will buy monkeys for $500 each! The villagers start to lose sleep!.....They caught six or seven monkeys, which was all that was left and got $500 each.
The villagers were waiting anxiously for the next announcement. Then the merchant announced that he is going on Holiday for a week, but when he returns, he will buy monkeys at $1,000 each! He also said that his employee will be in charge, and would take care of the monkeys he bought pending his return. The Merchant went on holiday!
The Villagers were frantic and very sad as there were no more monkeys left for them to sell it at $1000 each as was promised by the Merchant. Then the Merchant's Employee contacted them and told them that he would secretly sell them some monkeys at $700 each. The news spread like wildfire. As the Merchant promised on his return that he would buy monkeys at $1000 each, they would achieve a $300 profit for each monkey.
The next day The Villagers queued up near the Monkey Cage. The Employee sold all the monkeys at $700 each. The Rich bought monkeys in large lots The poor borrowed money from money lenders and bought the rest of the monkeys!
The Villagers took care of their monkeys & waited for the Merchant to return! However nobody came ! ..... Then they ran to Find the Employee....However he was not to be found!
The Villagers then realized that they have been duped buying the useless Stray monkeys at $700 each and were now unable to sell them!
This Monkey Business is now known as Bitcoin!
no matter how imaginary crypto currency is, it will never be more imaginary than the US Dollar. it's all backed by nothing but belief.
That I agree on 100%.
All the Central Bank Digital Currencies and shitcoins are meant to distract from the idea of the og bitcoin and operate on modern banking rules which is why leveraging sites like FTX are utter shit.
Obviously government will attempt to ban real crypto meant to free people like Bitcoin, and force people to ise their shitcoins.
It would be like driving a modern automobile with horse reigns. Keeping old tech with new.
Always remember, not your keys, not your coins.
If you objectively described USD as though it were a shitcoin, it would be one of the worst. Massively centralized ownership, inflationary AF.
Totally agree, only reason it was worth money was because of being forced to be used as the oil currency. Biden continuing to print money, IMO the USD will probably be worthless shortly.
Evil people are probably going to try and crash it by design, then have a "Digital Currency" which will be there to 'save' us but it will follow old banking principles rather than Bitcoin open source deflationary etc.
Good people if smart would make a coin tied to gold and create a new gold-backed standard crypto currency that can be your reserve, then have proper tokens for daily trade which can be burned or other methods which would not lead to inflation like todays banks continually printing more via loans.
Well, you're describing something that already exists. Tether coins are fixed to the price of an existing currency or commodity, and i'm 99% positive there's one for gold.
What's really interesting is when you look at some of the US wars and how our biggest enemies just so happen to want to abandon the petro-dollar each time.
I recall an infographic from voat which had like 11 counties listed, each wanted to get off the petro dollar.
They were all countries we invaded and went to war with.
nothing like a parable where to see yourself in the protagonists you have to be pants on head retarded
This is incredibly misdirected.
But yes the cryptocurrency is fucked up.
Let me give you a better analogy.
A blockchain is like a group of consensus-giving people. When something happens on the blockchain, it becomes historically accurate and verifiable, as if every transaction or purchase or deal is signed by everyone, then they run some math on the paper to verify that it's the paper. If the paper is changed, then the equation will point somewhere else.
So if they purchase an upright piano, in 50 years, you can see the transaction. And if even one person says "No you purchased a violin" then 20 check and see "the receipt doesn't match and the math equation we did on all the purchases in that adds up to say there was no violin" and that node gets rejected.
The reason coin became popular is because it's the only thing created on the chain. Thus it's the only thing with verifiability that's more than solid. Blockchain's weakness is it can't verify initial data. Initial data, like "this piano" links to something, be it a picture or sound file, or your own personal account who then says "this thing really is a thing".
Technically the blockchain is the same as your stock bonds. A paper that links you as the purchaser. However, instead of 2, super-trustworthy sources (sarcastically saying), you have a network of nodes saying "he bought this" and nobody can change it.
Do you see now how the problem with blockchain is initial data, and why coin would be so fancy?
NFT's aren't the chain. NFT's are added-on like 100 chuck-e-cheese tokens. They're proof of buy-in to a company.
People confused NFT's with the actual offering of value.
Likewise, you've confused the technology with hyped up stockbros that don't understand.
If Trump's speeches were signed onto a block, then later when the news says "He said this" you'd have 100% proof he didn't say what they said. This would be solid evidence and possibly prevent what we're in right now.
Basically you're attacking the one technology that can undo this. Please stop attacking the one technology that can undo the democrats.
Not an attack my Fren. I thought it as funny. I am no expert, but I do know that the blockchain is the technology the CB will use to make us slaves. BTC is not going to be here for long.
Buy Physical Gold and Silver Bullion. Silver in investment form is now rarer than gold, due to most all silver being stored in landfills and in all of our electronics. Being the 2nd most useful commodity on earth, silver is very useful and will continue to be for modern society...vaporware like Bitcoin and other shitcoins.... not so much.
The analogy is stupid, which you partially proved in your comment.
First of all, nowadays the merchant runs the same scheme on every asset, that's the whole point of fiat currency. Enrich a few on the top with all the assets while the people lose all the asset they own, because they sold them for fiat.
Secondly, real world use does create value. However, gold and silver are primarily used in electronic hardware, hence the huge demand in this modern world. Should something happen to the power grid or worldwide internet connectivity, demand will go down and we're back to a pre 1800 society anyway.
However, with internet and power grids functional and more redundant both metals and crypto will have value. What if you wanna communicate without getting censored? What if you wanna buy something online without paying tax to WEF or have your transaction blocked? What if you need to cross a border, as in simply leaving your neighborhood, which means you're gonna have to pass a check where they do a full anal search, you can't bring metals throughout such check without having it seized. You need crypto when you're getting the hell out of that Orwellian place.
You can bring your gold and silver across borders without problems, jewelry is exempt from these laws and is often never searched. Silver and gold have value because of the price it takes to discover it, get permits, dig the mine, collect it, refine it, and mint it. Then supply and demand also starts it's process on the price. Since crypto can, and NEVER will be a commodity, it can never be considered money, so it will always be a currency. And because its a currency, it will behave and have the value of a currency, which in our day and age is quickly being destroyed.
Silver is the 2nd most useful commodity on earth next to oil, without either you cannot even have a modern society. A computer based vaporware currency will have zero value as well. And also your whole 'if you wanna buy something online'' line is completely null and void once you look up companies like Kinesis, which is a bank that trades only in gold and silver on your account, any worthless currencies like dollars, yen, bitcoin are traded into physical silver/gold depending on what % of each metal you want in your account. All purchases you make on your credit card removes gold/silver by the nano gram. All accounts are audited 2x a year and anytime you want your metals shipped to you just ask them. Companies online also make gold/silver foil notes, which look like currency but are in fact metal. If a country ever made those as the notes people carried in their wallets, they would be vastly more secure than any other currency/money on earth due to gold/silvers unique attributes which in and of itself would be the best security for any investment on earth.
Im also not going to leave america, im not pussing out and fleeing when things get tough. Sorry for writing a book :D
The original is about the merchant buying chickens and cows instead of monkeys. Then he can overcharge on milk and eggs because now he controls the supply. Meanwhile everyone is stuck with their worthless dollar bills that are now only good as toilet paper.
Dumb people would sell their cows and chickens for "the right price". You just choose monkeys because everyone knows monkeys are worthless.
I stole it from Sodpoodle on another site. Thought it was funny. I do not know much about crypto, but I do know the dollar has lost 95% of its value. It is still tradeable for toilet paper for now.
You'll love the original more then, but joking aside you really should learn about cryptocurrency as an asset. The usage areas are unlimited if you care about privacy, free speech, secure and private communication, no middlemen in the digital space, local storage of digital assets and much much more.
Speculation is done to every asset today, metals, stocks, crypto, cars, houses, energy, water etc. They even have futures markets which allows a form of speculation that makes every asset volatile in value. To use that as an excuse to dump everything you own in exchange for dollars is both dangerous and retarded.
Now I'm not saying you need to get into crypto, or even understand it. But whatever you do, make sure that you own assets, that is land, some animals, an off grid house with wooden stove and wood burner, a vegetable garden, your own water well, horses and bicycles. Anything that will help you not ending up living in a pod, which will happen very soon if you only have dollars and debt now.
I have most of what you are talking about. Not off grid but could be if had to. Ty for the information. My main goal is to stay out of debt. Only problem I see is even being debt free my property taxes have doubled every two years and they want dollars. At this rate I will be paying a mortgage payment to the county in 10 years. I am in the country with a farm, and they jacked me again this year. That is the achilleas heal for most of us.
There has to be a solution for this too, with artificially inflated house prices they automatically increase property taxes based on a fake value of the house. I can see how this phenomena itself will force many of the last independent people to sell everything they own, move into a pod and eat bugs.
Holy fucking Boomer post, complete with sharing an "email chain". Boomers love their email chains.
Go back to watching Faux News. You have no clue how cryptocurrency works or the nuanced history behind Bitcoin and its intended purpose.
Keep tryin kid. I find it interesting that you spend your time trying to get my goat. I am flattered. You prob want to date me.
I find it amusing you think you know about cryptocurrency from reading a forwarded email from your Boomer friends, in which it doesn't describe the intricacies and purpose at all. Stick with government bonds, gramps.