Cryptocurrencies Part III - We ran as if to meet the Moon

[Jussi]

Up and down it goes. If you aint in it for the long run, you shouldn’t be in it at all.

There is no long run in it.

 

[The Crypto Guy]

There is no long run in it.

Lol okay. Thanks for stopping by.

 

[Beau Knows]

Crypto is good if you like increasing emissions for no practical reason.

 

[The Crypto Guy]

Crypto is good if you like increasing emissions for no practical reason.

It's okay, we can just go to Planet B after we are done with this one.

 

[Beau Knows]

It's okay, we can just go to Planet B after we are done with this one.

I suppose we could colonize Uranus.

 

[PeteWorrell]

Crypto is good if you like increasing emissions for no practical reason.

Or you want to launder money. Very easy to go to a crypto ATM to change cash into crypto and then back into cash. So much for alternative currencies when in the end, they are just being tethered to cash.

 

[Mr Kot]

I suppose we could colonize Uranus.

GOT EM!

 

[The Crypto Guy]

I suppose we could colonize Uranus.

Nah, we'll just go to Planet B. Then C. Very simple. Damn Crypto is KILLING the world!

 

[SuperScript29]

Yeah, you keep laughing and deluding yourself. That'll be useful when you're LIVING IN A VAN BY THE RIVER!

The only thing that sucks about the prices is I don't have extra money at the side to throw at it. This is like the best time to buy and stock up, I wish everything keeps crashing for a while.

 

[Jussi]

The only thing that sucks about the prices is I don't have extra money at the side to throw at it. This is like the best time to buy and stock up, I wish everything keeps crashing for a while.

By all accounts, this crash is permanent.

 

[SuperScript29]

By all accounts, this crash is permanent.

No such thing. A lot of altcoins will indeed disappear, but this is not the first time the crypto market has crashed.

 

[The Crypto Guy]

No such thing. A lot of altcoins will indeed disappear, but this is not the first time the crypto market has crashed.

He doesn’t really understand Crypto, I wouldn’t pay him any mind.

 

[93LEAFS]

Or you want to launder money. Very easy to go to a crypto ATM to change cash into crypto and then back into cash. So much for alternative currencies when in the end, they are just being tethered to cash.

Also to transfer money to people in countries on embargo lists. For example, Crypto might be the easiest way for Russian NHLers to get money to relatives at the moment since they are essentially kicked out of SWIFT. It's not like you can easily mail someone gold bars to sell.

 

[beowulf]

He doesn’t really understand Crypto, I wouldn’t pay him any mind.

Ahh the expert has spoken

 

[The Crypto Guy]

Ahh the expert has spoken

Thank you!

 

[SuperScript29]

Or you want to launder money. Very easy to go to a crypto ATM to change cash into crypto and then back into cash. So much for alternative currencies when in the end, they are just being tethered to cash.

You can launder money in crypto, but it's far far from easy. This is not 2012, the governments and major institutions have caught on to the game. I suppose you can get away with it if you live in a country with little to no rules, but if you live in any country that has regulations like the US, Canada, etc, good luck laundering anything.

For starters, the main way to get real cash for your crypto is through major centralized exchanges such as Coinbase, Crypto.com, etc. When you sign up for these services you have to provide your SSN, meaning whatever transactions you do on there are on file for the government to see and you need to pay taxes on some of those transactions. Also any significant money movements through your bank account will require you to explain where your funds are coming from.

The best way to launder money in crypto these days is through NFTs. Suppose you have someone that has been selling illegal items on the dark web and have setup a crypto address to receive payments. Such person would be an absolute idiot to transfer funds from this address to any legit centralized exchange. Even if he address hops between different wallets, the ledger is public and can be tracked back to the illegal wallet. So what such person can do is create a new clean wallet and mint/auction some NFTs. From there he can come with his illegal wallet and buys his own NFTs. The funds are now going to a clean wallet and the source of the income would be "Selling NFT art" or whatever. From there the cryptocurrency can be sent to a legit market and exchanged for real cash along with paying the fees and taxes like a good citizen.

 

[Scandale du Jour]

He doesn’t really understand Crypto, I wouldn’t pay him any mind.

There is nothing to understand that is particular to crypto.

It is investment like stocks but more volatile because it is not tied to anything tangible for the most part.

Like any investment, someone who thinks they'll make a quick buck will most likely lose money. People that analysis tendencies and pick their spots will make money. Those who fall for the pump and dump schemes will lose a lot.

 

[SuperScript29]

There is nothing to understand that is particular to crypto.

It is investment like stocks but more volatile because it is not tied to anything tangible for the most part.

Like any investment, someone who thinks they'll make a quick buck will most likely lose money. People that analysis tendencies and pick their spots will make money. Those who fall for the pump and dump schemes will lose a lot.

To be fair, you can make a quick buck in crypto. But at that point it's hardcore gambling.

 

[The Crypto Guy]

There is nothing to understand that is particular to crypto.

It is investment like stocks but more volatile because it is not tied to anything tangible for the most part.

Like any investment, someone who thinks they'll make a quick buck will most likely lose money. People that analysis tendencies and pick their spots will make money. Those who fall for the pump and dump schemes will lose a lot.

I mean, crypto, especially Ethereum, is a lot more than just an investment as a whole (well maybe not things like Doge).

But I completely agree with everything you said in your last paragraph.

People who rush into investing to make a quick buck with any research, like you said will likely lose money.

 

[Scandale du Jour]

To be fair, you can make a quick buck in crypto. But at that point it's hardcore gambling.

And you can make a quick buck with penny stocks.. but at that point it's hardcore gambling.

What makes me sad is that people fall for the one in a million stories. "Oh, that guy made a lot of money by investing in XYZ, if I do the same I'll be rich too."

I mean, crypto, especially Ethereum, is a lot more than just an investment as a whole (well maybe not things like Doge).

But I completely agree with everything you said in your last paragraph.

People who rush into investing to make a quick buck with any research, like you said will likely lose money.

Well, the whole concept behind it is more than just an investment, I agree. For the common folk though, it ends up being like any other (bad) investment.

One thing I never understood was the whole mining thing.

 

[SuperScript29]

And you can make a quick buck with penny stocks.. but at that point it's hardcore gambling.

It's all gambling.

One thing I never understood was the whole mining thing.

This is a complicated subject, but in a nutshell, some coins use what is called "proof of work" concept while others use "proof of stake". When it comes to mining new coins, this is usually done in the proof of work. What this means is the miner sets up their machine (Also known as a node) to solve a mathematical problem on the ledger. This is to verify that all the transactions on the network are legit and there are no attacks taking place (DoS attack is one of those attacks). Once your machine successfully solves one of these problems, a new block is created on the chain and you get rewarded with the currency. With the proof of stake concept you don't need to set up a machine. You can stake your coins and you get rewarded that way.

The older generation blockchains like Bitcoin, Ethereum, Dogecoin, Litecoin, etc use proof of work, whereas newer blockchains like Cardano, Solana, Algorand, etc use proof of stake. It's worthy to mention that Ethereum will be moving to proof of stake in the future, so it seems clear that this may be the way going forward.

 

[Scandale du Jour]

It's all gambling.



This is a complicated subject, but in a nutshell, some coins use what is called "proof of work" concept while others use "proof of stake". When it comes to mining new coins, this is usually done in the proof of work. What this means is the miner sets up their machine (Also known as a node) to solve a mathematical problem on the ledger. This is to verify that all the transactions on the network are legit and there are no attacks taking place (DoS attack is one of those attacks). Once your machine successfully solves one of these problems, a new block is created on the chain and you get rewarded with the currency. With the proof of stake concept you don't need to set up a machine. You can stake your coins and you get rewarded that way.

The older generation blockchains like Bitcoin, Ethereum, Dogecoin, Litecoin, etc use proof of work, whereas newer blockchains like Cardano, Solana, Algorand, etc use proof of stake. It's worthy to mention that Ethereum will be moving to proof of stake in the future, so it seems clear that this may be the way going forward.

Thank you very much for your kind explanation, much appreciated.

 

[spintheblackcircle]

 

[Dirty Dog]

There is nothing to understand that is particular to crypto.

It is investment like stocks but more volatile because it is not tied to anything tangible for the most part.

Like any investment, someone who thinks they'll make a quick buck will most likely lose money. People that analysis tendencies and pick their spots will make money. Those who fall for the pump and dump schemes will lose a lot.

I paid for most of wedding with crypto gambling!

It is definitely gambling like a lot of investments. But unless you think this crash is permanent, I don’t think the major options are too risky right now if you’re going to sell on a high

 

[SoulOnIce]

I would compare most crypto with penny stocks. But bitcoin and ethereum are different, way more established. I will be buying up more bitcoin in future. These smaller exchanges getting wiped out is probably good longterm.