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Cryptocurrency myths

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Written by   16
1 month ago

In the last article, we talked about whether we, parasites who left the system, can use cryptocurrencies to not depend on such deeply systemic things as banks and central banks. But before we are able to coolly choose our own way of how we can put cryptocurrencies at our service, we will first have to sort out common objections to cryptocurrencies.

This is what we are going to do with you now.

1. Crypto is not serious. There are only scammers there.

Indeed, any new phenomenon that has not yet been mastered by broad masses of people attracts a large number of various kinds of scammers. As usual, scammers exploit the desire of people to get rich quick. Cryptocurrencies are no exception, moreover, the scale of fraud has reached a systemic level. Do not forget that the biggest scammers in the world of finance are central banks, which we already talked about in the last article, but nevertheless they are somehow not considered to be scammers. “If you want to hide something, put it in the most visible place.” Approximately the same scale of fraud exists in the crypto industry. We will talk more about this later. And therefore, in order to avoid being a victim of large-scale fraud, we must abandon the emotional impulses that urge us to make a quick buck, and instead systematically improve our literacy. That is what we are doing here.

2. This is a pyramid (Ponzi) scheme.

The main distinguishing feature of a financial pyramid is a high promised yield with unclear sources that generate this yield. The real source of this return is new investors. Money is brought into a financial pyramid solely for the sake of this profitability, and as soon as the profitability disappears due to the fact that they begin to withdraw from the pyramid more than they deposit into it, a collapse occurs. Thus, if the only interest for which a certain cryptocurrency is bought is high profitability on hype, and this cryptocurrency does not really perform any other function (although they can be declared), then such a cryptocurrency is a pyramid (Ponzi) scheme. And there are many, as we will see. Our task is to choose cryptocurrencies that are not pumped up with hype, but rather the opposite, already driven by propaganda somewhere in the dungeon, but at the same time perfectly performing the function of electronic cash. This is the function we will be using. We discussed the criteria for such a cryptocurrency in the last article.

3. Crypto can easily collapse.

Yes, it can. And if it was a pyramid scheme, it won't rise again. Although in some cases, the pyramids, using people's craving for rake dances (stepping on the same rake again and again and getting hit on the head each time), can be restarted a couple more times. If it is a cryptocurrency that really performs a demanded function, such as electronic cash, independent of governments, banks and central banks, then it does not matter how it fluctuates. The function is here to stay, and since the demand for this function will only grow as cryptocurrencies are adopted, the price must also be higher to meet that demand. And fluctuations can be turned to your advantage if you approach the issue correctly. And the greater these fluctuations, the more benefits.

4. These are just abstract numbers, not backed by anything.

Fiat currencies, by definition, are numbers in the computers of banks, backed by nothing. You can't take a $100 bill and be guaranteed to exchange it for a piece of gold that matches it at a fixed rate. Until 1971, this could theoretically be done, and after that it was no longer even theoretically possible. In this case, what is the difference between the dollar and a chewing gum wrapper? Only one. So far, the entire population of the world BELIEVES in the dollar, and only chewing gum wrappers collectors believe in chewing gum wrappers. And while today they give you food for the dollar, tomorrow they will give you a punch in the face for it.

For some reason, no one is embarrassed that the numbers of fiat currencies are in fact in the hands of one Vasya Pupkin, who is in charge at the central bank. The value of crypto-currency numbers, but not of any, but only capable of performing the function of electronic cash, lies precisely in taking these numbers out of the hands of Vasya Pupkin and transferring them to the hands of the users themselves.

For that matter, the use of gold as money is also based on faith. For example, that tomorrow some alchemists will not invent a way to turn I don’t know what, let it be water, for example, into gold.

Cryptocurrency can be perceived in the same way as a chewing gum wrapper, and as the dollar today, or rather yesterday. It all depends on people's faith in a particular cryptocurrency. And on what does this faith potentially depend? It depends precisely on the fundamental abilities of a particular cryptocurrency to perform the functions of money, the criteria for which we considered in the last article. Cryptocurrencies that are not capable, or poorly capable relative to others, will be blown away after the hype, and those that are capable will take their respective place.

5. They steal wallets. It is not safe. It can be easily stolen by guessing codes.

Indeed, many people who are careless about the security of their computer or mobile device, setting simple, easy-to-guess passwords for their accounts, including bank accounts, have encountered such a phenomenon as account theft. Moreover, a system with centralized accounts on bank servers is vulnerable to various attacks, including password interception. Cryptocurrencies, on the other hand, do not have centralized accounts and no servers where someone's personal data would be stored. Private keys that give access to coins are stored only by the user, transactions are signed with them, and already signed transactions are sent to the network. If such a wallet that signs transactions is an independent hardware wallet, for example, just a separate computer not connected to the Internet, then it becomes physically impossible to steal the private key over the network, because it simply does not exist anywhere. There are also specialized hardware wallets. An attacker has to physically steal this device, and then also guess the password, but while the attacker is trying to do this, we have time to transfer everything to our other addresses. The private key itself cannot be picked up by any of the fastest computers, their complexity was specially chosen this way. That's what cryptography is for. But indeed, owning cryptocurrencies, you are your own bank, so the issue of secure storage of private keys must be treated with full responsibility. We already know that an irresponsible person cannot be free by definition.

6. It is not clear what to do with it. How to buy with it, how to withdraw, how to exchange.

Everything new needs to be learned. There is nothing complicated here. That's exactly what we're doing here. No one will come and put it all chewed in your mouth. All this is in our program, stay on the channel. You managed to learn how to use banking applications, didn’t you?

7. A lot of types. How not to get confused. How to choose.

In the last article, we formulated the criteria by which we will choose cryptocurrencies. Some criteria can be checked simply in practice by installing a wallet and trying to send cryptocurrency back and forth. For example, this is how you can estimate the speed of transactions and fees. Other criteria require you to study the history and some technical details of the cryptocurrency. It makes sense to read, and maybe chat with other users in the community of a particular cryptocurrency. But it's all in English, and I'm here just to deliver this information to you, my dear readers. Therefore, stay on the channel so as not to miss the unique information.

8. Shares can only be bought through brokers. Is it possible to buy crypto directly without brokers?

Yes! Crypto is good because it removes intermediaries. The best way to sell or buy cryptocurrency is to exchange directly with another user. There are exchanges where such users gather and find each other. And for this, of course, no documents (KYC) are required. The exchange ensures the security of the transaction, in no way touching either fiat or cryptocurrencies. The transaction takes place on the blockchain itself. There are also a large number of exchangers, which in fact are such advanced users with whom you can always exchange without providing documents (KYC). While on centralized exchanges, transactions with fiat without KYC are no longer possible these days. But it is possible to exchange crypto to crypto on some centralized exchanges without KYC.

9. It is very difficult to understand crypto. Only the youth can do it.

Grandmothers are already using banking applications in smartphones. Using cryptocurrencies is not at all more difficult, as we will soon see. But the question of how to choose really worthwhile cryptocurrencies is a question for people who value their freedom and are ready to defend it. This is what we are, and this is what we do here. And everyone else follows the people who pave the way.

10. It is unclear where to get information about crypto.

 Everything is very clear in fact. Links to primary sources for all cryptocurrencies are available on the websites coinmarketcap.com and coingecko.com. Using these links, you can study any cryptocurrency. But everything is in English. To conduct your own analysis, you still need to understand English. And I'm here to give you some information from there. Therefore, stay on the channel so as not to miss information that you will not find anywhere else in Russian.

11. Power outage. And that's it. Your crypto is gone.

Such comments speak of already ingrained thinking within the system where everything is centralized, where everything happens at the behest of a certain king, in whose hands everything is, and all people depend on this king. But cryptocurrencies have already undermined the ability of states around the world to control money circulation, and through it their citizens and their economies. Cryptocurrencies capable of performing the functions of money literally knock the ground out from under the feet of such kings, both imaginary, created by propaganda in the minds of people, and real ones. Therefore, one must understand that the entry of new, perfect money into our life changes it from all sides, makes our life more decentralized in all aspects, including electricity production, especially since very little of it is required for the cryptocurrency to work. By the way, decentralized energy is a separate interesting topic.

12. Cryptocurrencies are not money. It is at best “digital gold” or “store of value”.

It is widespread, including among bloggers, to treat cryptocurrencies purely as a means of speculation, which you need to buy at a lower price in time, in order to sell it later when the price rises, and then “withdraw profits” back into fiat. The very expression “withdraw profits” suggests that cryptocurrencies are not money at all, and they should not be. It is anything – a commodity, a financial product, even “digital gold” or a “store of value”, but not a currency or money that is used to pay for goods and services. Meanwhile, today many have forgotten, and even more people never knew that in the early years of bitcoin, the attitude towards it was completely different, namely, as alternative money, independent of the system, capable of making a revolution. Articles, videos, blogs - everything was around this particular topic, and not at all the topic of speculation, as it is now. Why now everything has changed so much is a topic for a separate video in which we will understand this.

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