Crypto Education And The Wrong Perception of Newcomers

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Avatar for Pantera
3 years ago

There is a growing positive sentiment towards investment in cryptocurrencies around the world, although there is also excessive ignorance on the core features of cryptocurrencies. The crypto evangelists are mostly BTC fund managers that care only about the exchange value and how to push adoption to institutions, possibly without understanding the fundamental characteristics of cryptocurrencies.

Sadly, we observe a purposed absence of discussion of the permissionless features of cryptocurrencies and this contributes to the stagnation of real adoption.

Instead, we watch on our screens folks like Michael Saylor pushing an “investing” agenda that will eventually surrender all crypto to the whims of regulators.

An overwhelming majority of newcomers don’t quite understand that the money in your bank doesn’t belong to you, and never understood the concept of financial freedom. The same newcomers still haven’t figured out the importance of holding your private keys, using non-custodial wallets, and the dangers of KYC.

I remember when I joined in 2017, some decent people were trying to educate the newcomers. Right now it is just speculators and traders talking about investing, ROI, trading and price, and nothing on the tech itself. Too many of these useless Pomps have brought crypto to the point of becoming PayPal 2.0.

With this article I would love to discuss these subjects, as besides the millions of newcomers in Crypto this year, there is also a high percentage of investors and speculators that entered the previous bull-run but still understand very little about the importance of decentralization or censorship resistance features of cryptocurrencies.

Crypto adoption is Robust But For The Wrong Reasons

Image from Unsplash

Everyone that enters the world of crypto does that for investment purposes. The rise of DeFi has not proceeded with the inclusion of any other asset class but cryptocurrencies, so it is still detached from the real economy.

We discuss often the term financial freedom or financial independence, but let me ask you, what do these words mean to you?

Have you ever considered that we are not talking about investments, ROI, APR, or any kind of profit by investing in crypto as assets?

Because this is a common misunderstanding. Financial freedom does not mean that you will get filthy rich by investing in crypto. It doesn’t mean that you will have the freedom to quit your job and retire on a tropical island.

This is sadly how the fund managers understand freedom. By having more fiat. And from what I’ve seen, this is how way too many people in this field understand this concept.

Financial Freedom Is Our Private Keys

Financial freedom is the freedom cryptocurrencies give to everyone around the world to transfer funds with no one in between. There are no rejection codes in the blockchain world. 

This is not the centralized banking kleptocratic system. We are talking about absolute freedom to do whatever you want with your money, without the need of asking for permission.

Nobody controls your crypto but you. The crypto we own is not in our wallets. They are inside the blockchain and the wallet only provides access to move them. Nowadays, we have more and more custodial wallets as options and even more completely centralized investment options that offer cryptocurrencies, but do not allow access to move the coins. These coins are not yours.

Did you buy Dogecoin at Robinhood or Revolut? Not your Dogecoin.

Did you buy Bitcoin through PayPal or Square? Not your Bitcoin.

The private key gives you access to your crypto wealth. Not your Robinhood password. Anything you bought and still hold inside a custodial exchange wallet is not yours. It only becomes yours when you transfer it out, in a non-custodial wallet where you own the private keys.

Governments Are Increasing Control

Image from Quotemaster

Governments are now pushing legislation to adopt KYC compliant and custodial features and ban any other services that give access to your funds.

The rapid expansion of Bitcoin led to the hijacking of the brand name by Blockstream, the stalling of scaling developments, and instead, the development of layer-2 solutions. As we see today with Strike and the El Salvador example, Bitcoin, as it stands in the BTC version, will soon have nothing to do with the original vision of the whitepaper.

  • Not P2P but Layer-2.

  • No control of private keys but centralized second-layer networks.

  • Centralization in LN hubs

  • KYC/AML compliance, anonymity is not an option

  • The middle-man is not removed

  • Strike and other similar LN wallets do not differ from PayPal

  • Censorship instead of Censorship resistance,

  • Authorization of transactions by centralized power in control

Crypto does not serve the government’s purpose of tax collection and mass surveillance, unless transactions are administered by centralized financial hubs. Musk understands PayPal and would love to transform crypto into a PayPal 2.0.

Your data is required to be linked to a name no matter if this is already happening with the bank transfers to exchanges. Because of the complexity of the blockchain and the various obfuscating mechanisms, governments will require a vast cost of running blockchain analytics and they don’t like that.

Instead, with the help of some “entrepreneurs” like Dorsey and Musk, the governments already have an easier solution, enforcing custodial wallets and services that will lower the cost of surveillance and increase their power and control.

Final Notes

In a previous flipstarter (I don’t remember which one it was) someone donated using the alias Andreas Antonopoulos with the quote: “If I wasn’t a total sell-out, I’d be with the side of Bitcoin Cash”.

Completely agree with this statement.

Andreas is a person who helped me understand a lot while a beginner in Bitcoin. I followed him until it was obvious he was taking the side that was against everything he was advocating for previously.

I wonder how he feels about Bitcoin becoming BTC, and then transforming to LN-BTC. One time, he specifically stated that both scaling on-chain and side-chains will be a requirement. Yet, on-chain scaling is not a consideration by the Bitcoin Core (Blockstream) devs, and moving all scaling into a second layer while the first one is crippled will create conditions for financial hubs to take control with authorization (and rejection) mechanisms under strict governmental regulations and authority.

Since the institutions demand BTC to become more regulated, the BTC bagholders will agree to anything.

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Avatar for Pantera
3 years ago

Comments

hi good evening, i dont totally understand what is crypto but im really willing to learn, thank you for you article it can help me to understand a little regarding crypto, thank you

$ 0.00
3 years ago

Partly true for my side

$ 0.00
3 years ago

Good read mate . Thumbs up.

$ 0.00
3 years ago

Informative post and I must appreciate the way you described everything. Newcomers will definitely find their way to crypto-currency. Recommended for those people.

$ 0.00
3 years ago

I hope that newbies and people who need to educate themselves in cryptocurrencies read your article. Governments and the financial system will not stop trying to control BTC.

As you may know, I live in Venezuela, where the use of cryptocurrencies is much higher than the average in other countries. Although there is still a long way to go. Here many power groups have put their hand on the BTC. In recent years, the government has tried to make regulations to know the information of people who use cryptocurrencies. Lots of money come into Venezuela in remittances with cryptocurrencies and the government is always looking for a way to have control over this information.

Also for months, I've seen an ad campaign on the street that encourages people to save in BTC, but there is no sign of who is behind the campaign. And I haven't stopped wondering what are the hide interests that are behind.

People have to understand what is the true meaning of financial freedom, as you said. It's very enlightening how you put it in here.

$ 0.00
3 years ago

I call this article the simplest definition of power & freedom.

Since the institutions demand BTC to become more regulated, the BTC bagholders will agree to anything.

Not sure but I think 🤔 the statement could be a meme to awaken BTC users ( we already know they that BTC users have lost their way.

And what you said is totally true they will do anything to get the government off their back) Even if they have to sell their privacy 🔏.

Also the crypto world 🌎 has we know is ending since everyone / everybody who adopts cryptocurrency these days is only in has an investor not a believer. They don't know the valve of it - all they think is the price 📈📈.

I read a post yesterday about the difference between price and value ( I forget who wrote it) but I think you should check it out.

Great 👍 post

$ 0.05
3 years ago

I read a post yesterday about the difference between price and value ( I forget who wrote it) but I think you should check it out.

I read a post by Telesfor about that, is it this?

cryptocurrency these days is only in has an investor not a believe

It feels that for 99,99% of those newcomer investors the revolutionary features of cryptocurrency don't mean anything at all. Coming from discussions I've had with people I know, they bought without even understanding what they bought. I remember a person I know for years calling me again this January after many years, and asking me for investment advice. I gave him information about cryptocurrencies instead, explained a few things about BTC, Bitcoin Cash and Monero.

$ 0.00
3 years ago

Unfortunately, CBDC's now will lead to a one-world digital currency in due time. Therefore, I am taking advantage of my crypto while I can.

$ 0.01
3 years ago

This might take a while and if we are to count the odds today, I'd say that CBDCs may require decades ahead, so don't worry too much.

$ 0.00
3 years ago

Of course, I do not worry about it. I just keep my nose to the grind and keep at eye out for developments in the financial sectors.

$ 0.00
3 years ago

Many people don't know about cryto because others are still ignorant and they are hesitant to invest in cryto. It is unavoidable because they are afraid that they might lose their assets and lose their money.

$ 0.00
3 years ago

A lot of people have been given the wrong orientation about the main importance of crypto and that's why people have lost lots of money coming into crypto.

Financial freedom for me means having total control of my money and the things I do with my money. It has to do with no one having to check or serve as an intermediary between my transaction and the receiver.

I think a lot of big names associated with crypto have created cracks in the wall which has given the government opportunity to interfere with how things are done in the crypto world.

$ 0.05
3 years ago

At least when it comes to any BTC influencer or investor, financial freedom means to make more fiat money. They only bought to sell later again and will spam and write any kind of nonsense to justify KYC and regulations. There are some people that think differenty but all of them have long abandoned the BTC sinking ship.

$ 0.02
3 years ago

I joined crypto for the wrong reason. I've read stories of guys who bought $100 and became a millionaire few years down the lane, though with time i knew better than to expect an overnight change in fortune from my crypto investment.

Also i do join them in saying "Not your keys, not your coin" . In fact, in my Zoom classes where i teach people how to use noisecash and readcash, i do say it and it makes me appear as some crypto god to them.😂 but i didn't know the meaning until recently when i moved my Coin to Nexo ( A custodian wallet). Every day i was feeling unrest about possible things that can happen to my coins since i don't have the seed phrase written down.

After a week of receiving a little interest i transferred back to Bitcoin.com, though it doesn't have any interest plan but i have the rest of mind i lacked. I saw MGS article about Custodian and Non-custodian wallets and finally saw a noisecash post of yours about a Firm that hackers attacked. It was then the true meaning of "Not your keys, not your coin" became known to me.

$ 0.00
3 years ago

in my Zoom classes where i teach people how to use noisecash and readcash

Wait, what? You are doing classes teaching people about these platforms? What are you teaching them?

I'm sorry for asking, don't count it as dude behavior, I was surprised, but I guess I understand that you are doing this to help some people find a way out of a mess they may be in. I honestly understand it. But I wanted to understand how you came up with this idea and if it brings profit to you. I guess with the new feature of referrals you will not need to ask for payment. I would also want to bring to your attention Bitworkerss.cash. Maybe the guys you are teaching will have different skills each of them, and could find a useful website to advertise their skills.

$ 0.00
3 years ago

Most of them are my coursemates. Currently I'm earning from the readcash referral. Close to 20 people constantly get tipped from the bot and i receive a little percentage. The guy at the top of the list has brought in $12 for me. Noisecash is like a bonus to them. Yes I've heard of Bitworkerss.cash , i registered but i haven't checked back since. I will introduce it to them on my class group tonight using my referral link. Maybe they can get jobs from there and of course more referral earnings to me.

$ 0.00
3 years ago

Even IMF now forcing governments to regulate cryptocurrency..

$ 0.00
3 years ago

I hope a lot of noobs read this article, and look through the comments section. Lots of great discussion going on here! Unfortunately I noticed quite a few spam comments in your comment section too though.

It seems to be getting worse lately. You have to click on them to see what they are, so I guess the system already flagged them? Make sure you report them anyway just in case. I already reported them and blocked them. The one user has only had an account for five hours and they are posting links to lord knows what.

*Just a pro tip for anyone who reads this. Never click on a random link posted in a comment thread. It's most likely bad news.

$ 0.05
3 years ago

You are right, too many spammers are commenting lately. Out of topic and didn't bother to even read the first two sentences... You did well to report them and I reported as spam that first guy with the link to that wallet. This wasn't marked as spam initially.

Don't open the spam, they are marked as such for a good reason.

$ 0.01
3 years ago

One thing that should keep recurring in our minds and more especially the newbies is that life is not a bed of roses and hence that's the case, then, patience is all that is required to make the most out of life and such should be the case with the language of Cryptos where the key word definition should mean patience in order to grow with time when much more money is made from holding on and being patient. I think everyone needs some education on this to be able to you understand what Cryptos really mean and represents

$ 0.00
3 years ago

Totally on point

Little did people or newbies into the crypto verse know about what cryptocurrency is all about.

Many would think when they mean financial freedom it mean they are getting a billion of dollars in few months after investing.

Yeah private key are what save us from the old time centralized financial system and government policies making it our personal finance.

$ 0.05
3 years ago

I have been thinking about the way the government is doing anything to regulate crypto and I concur with you. These whales will easily agree with the government to any term that favours them more not minding the ripple effect.

$ 0.05
3 years ago

Eventually, it will be seen as a complete waste of time and resources. These BTC whales are not interested in anything else but the rise of price.

$ 0.03
3 years ago

No matter what happens, crypto keeps defiling the odds. Crypto is here to stay and that's the future. One of the best decisions is to accumulate more gems on a trusted application like https://atomicwallet.io/ for the long term.

$ 0.00
User's avatar Frd
3 years ago

Absolutely right. Enlightenment, enlightenment and once again enlightenment. No use of custodial wallets, no use of LN-Coin (It doesn't deserve the name LN-Bitcoin). I fear that many lemmings will not understand and will jump into the abyss.

$ 0.10
3 years ago

LN Coin. I agree, it doesn't even need the name BTC or Bitcoin within.

$ 0.01
3 years ago