During my life I never
treat you. The issue with a system like that is that even though you might be
perfectly happy to give up your holes you just might not want to cats so that
trade will never happen but that's weak currency came stage 2 queens which
because they were made of precious materials like gold and silver everyone just
accepted that they will with something you've heard of the British pound right
well the reason the coupons because one pound literally just used to be one
pound of silver and all the sudden in trade it doesn't matter if you don't want
my cat as long as I have queens we can still trade fuel holes even if you have
no use for the silver because is a precious material you have that reassurance
that you can take that coin to give it to someone else and trade to something
that you do what's convenient right.
But in the civil to
stage 3 as banks became established in government control we realize that as
long as there was trust in the system we could move away from needing to carry
a box of precious metal toward something even more convenient paper money it
does the same thing but now the money doesn't have value because it's made of
pure silver it just has value because the government says it has not like this
10 pound note here in the UK the net itself it's just made of was estimated
plastic they changed it recently because more durable but if you look closely
you can see that also she is the bank of England promising that they will pay
the barrel all this note 10 pounds really this is just a receipt a kind of
proof that you own a certain amount of money Bucks as technologies improved
even further we found even more convenient ways of storing and trading all stuff
we know and what I would call stage 4 where more people than ever buying things
online and using credit cards and pretty when you're at that stage we don't see
on many anymore it's not about coins or notes old cats it's just entries on a
spreadsheet like when I buy music album from Amazon all that's happening is
that my bank as an entry in my spreadsheet that says our now has $10 less and
then I was in the bank at an entry that says they have $10 mall sept the reason
I'm giving you this entire intro is to give you context on where cryptocurrency
sits it's the.
By many people as the
most convenient era of exchange have a. Stage 5 the way to think about crypto
currency is that its 100 percent virtual I know the logo for bitcoin kind of
looks like a physical coin it really is a bit coin in the house but with crypto
there is no cold there's no silver and there is no paper it really is just the
transfer of digital assets cool concept is exactly the same think of them as
luxury just running spreadsheets of who's paid what to whom but instead of
multiple banks keeping their own separate codes with crypto if there's just one
enormous spreadsheet of every transaction made using that currency and this is
called a ledger okay we'll have a good spreadsheet but also the fuss about why
someone going crypto crazy well there are some distinct advantages to a
currency system like this one it's decentralized which means that one every
transaction of a given cryptocurrency is all recorded on the same letter there
are many many copies of that letter and anyone who is a part of the network has
one you have heard of cryptocurrency mining for bitcoin mining well all that is
is someone who set up the computer to crunch through transactions on that copy
of this letter of spreadsheets they're already about 1000000 bitcoin miners
around the world and bitcoin is just one type of cryptocurrency the reason
they're doing it well if you dedicate your computer's power to mining state
bitcoin then you will own some bitcoin as compensation so the result of this is
that if I go into a store and spend 5 big points or something then instead of
just checking with one banks records show instead checks with every single
computer on this network if I have enough and assuming I do each computer will
give the go ahead and then every single one will update their records
independently said because you end up having this many copies of exactly the
same ledger it becomes very easy to tell if anyone's trying anything fishy. Did
you.
You pull this look if I
try to hack into someone's computer that's on the network and give myself more
money by adjusting figures on that copy of the ledger still going to get
through the system will realize that 99.9 percent of the copies on the ledger
is saying one thing but one of the missing something else so it must've been
tampered with there is very clear organization to the system and I think people
believe in it because they see the future as open traceable transactions much
more so than having like some bits of the report here and other bits of that
and I know it seems complex of this point but as we go through this I think
you'll realize that for a lot of people in a way it's simpler there are plenty
of areas in the world that have internet access which is will you need for
crypto but don't have access to traditional banks which require a lot of people
work and documentation to end a kind of implied this already but the main perk
of crypto is that you don't need banks anymore because everything is stored by
the people on this ledger you can make international payments almost instantly
instead of taking off the day with no spending limits plus you don't need to
worry about exchange rates you don't need to worry about interest rates and
even transaction fees close to 0 for some quick difference is that it but this
is where the real fun begins I'm fun to parties like promise the reason that
crypto currencies are called crypto currencies is because this security
cryptography and one example of this which is one of the major crypto
currencies like bitcoin use this blockchain no people often get confused by
this blockchain is not the point blockchain is not a currency itself blockchain
is just to secure all type of letter you know the big spreadsheet everyone has
this recording transactions blockchain is just a way of organizing it it's
funny enough into blocks so every time I pay for something with bit coin the
transaction is recorded as a block each block contains transaction data like
who is paid and how much the hush which is a unique identifier and the hash of
the previous block in sequence for the last transaction that was recorded and
the pivotal much the system rest is that something in the block is chain. Inst
and the apple hash will change you might be starting to see where this is going
because each block also contains the dates with the previous block hash of the
block here changes then the next block will no longer have a matching trust
with it and every subsequent block after that one becomes invalid so if you
combine this with what we talked about the idea this whole idea of 1000000
different uses all having their own copy of the blockchain ledger then if I
wanted to 40 let me create a transaction that says pays me money.
I have to not just
tamper with a block and every single block after it but I'd also have to do
this one at least call for 0 computers around the world said that for the
majority of computers in the system are also consistent with the one I've
tempted with probably not gonna happen what is just hacking into someones
dollar account and sending myself money that does happen and it's sometimes as
simple as just literally guessing someone 6 digit pin but there's a massive
jump between that and trying to hack into 500000 uncorrelated computers at once
okay Sir crypto currencies have their issues I'm literally gonna get them in a
minute but hopefully you can see why some people are excited about and that
brings me into investments you probably heard of people putting money into
crypto currencies and all that means is that they're exchanging normal
currencies like dollars for cryptos like bitcoin they're hoping that those
crypto currencies become the next big thing and apple suddenly shoot up in
value at which point they can then I to spend them what's the exchange them
back for more dollars than they pull them this is a time for crypto currencies
that skyrocket like this going to the moon or the moon but that can mean
something very different depending on who you talk to but the one decision that
someone would have to make at this point is which crypto currency because we
talked about bit coin the big point is just one of over 4000 different cryptos
already and each of them have different properties for example Ethereum which
is the second most invested in can process transactions even faster than bit
coin this one call call Donna which is considered to be technologically
superior this one could light coin which has a new algorithm and if you aren't.
Doing this video then it's up to the channel would be. Delightful. Let me see
what I've done and disclaimer this is not in any way possible financial advice
I'm not recommending this I have the tree only put in a small amount of money
that I'm comfortable losing and to be honest what I'm seeing is more of an
optimistic gambled as opposed to strategic investments the only thing that you
absolutely should buy one of these paths. That's 578.
That is managed by 40
percent in Ethereum 20 percent poly gone 20 percent in Cardano with 10 percent
in contents he attempts and likely and this portfolio is basically gone up and
then down and then up and then down and then on C. pretty get more consistency
from wish.com so crypto is in a pretty wet place right now and the Springfield
has problems the dark side one of the main ones is exactly this the reason I
think a lot of people don't take crypto seriously is volatility because these
currencies are so new and they're completely digital unlike say the market for
gold no one really knows what they should be with and so you find that crypto prices
quite heavily speculative that tied to the news cycles like when a glowing
article comes out about them prices spiral upwards but then when it on musk
posted tweets to put them down they go way down to is the fact that they're not
really accepted as a form of payment in most places like yes I can now book
holidays with crypto I can donate to wikipedia with crypto but there's been a
lot of companies who are pretty back and forth with it Microsoft has learned
even Burger King are examples of companies who said they were going to accept a
coin and then they said they weren't going to accept the coins 3.
They can be an
environmental concerns the whole reason why not a script is a safe secure old
is because of this concept of transactions being verified many many times by
many many computers so I think it's a fair criticism that that in itself
creates a fundamental inefficiencies that much computing power requires a lot
of electricity but at the same time you could counter this by saying that
traditional banking uses more electricity that during your coins a better
technology that's all more efficient and that 1 day we'll be able to get that
electricity from renewable sources depends who you ask and for this is a pretty
strong sentiment that because there's no real policing world regulation on
crypto right now it's like the perfect currency for criminals but to be honest
I think the data speaks for itself on that 1 according to Chainalysis no point
34 percent of crypto transactions and criminal up to 5 percent of normal cash
transactions a criminal and I think that's because it's a bit of a
misconception the currencies like bitcoin are anonymous directly pseudonymous
which means even the actual details on visible to everyone the public key your
unique identifier will be permanently baked into the blockchain upon making
transactions with it said cash is just a better currency from those types of
criminal activity because by its very nature it's untraceable. Don't ask me how
I know that. But as well as the negatives they're also just some straight-up
all the things that have come about because of crypto for example you might
have an N. F. T. the nonfungible tokens. If you haven't.
160 for this 1. Don't
call it stupid but this one 's a head scratcher he said you know now you can go
into an art gallery and you can pay to own a painting well now thanks to the
blockchain you can pay just to have digital ownership of something so it
doesn't stop anyone from using or sharing that thing the only means that you'd
effectively be the owner of the original and they'd all be sharing copies of it
even if the most intensive purposes the look and behave identically like a lot
of these entities are literally just JPEG images I think the reason some people
find this stupid and it's kind of funny is that there's a distinct difference
between buying enough to eat and buying the right so if something so if you buy
the rights of something that's a very legitimate purchase because you can
create much wholesale licenses with an entity you caught the original owner
still has all the reproduction rights over that piece all it is is that you're
using the blockchain to prove that you have some ownership over the assets but
clearly just being able to say that has some value because an entity of this
Gucci ghost so for $3600 the CEO of Twitter Jack Dorsey he sold the first week
he ever made as an N. F. T. for 2.$9000000 5 words I could do that any takers
and this one just blows my mind this photos which is basically an overview of
one guy's pieces of art sold for $69000000 very nice to clarify this literally
just give the bias some digital ownership over a JPEG image.
And finally, you might
have heard of Dogecoin Dogecoin is based on the same tech as a light coin. But
it was created as a joke people started sharing it and putting their money into
it because they thought it was funny but that propelled its value to the point
where now we have people who have actually become millionaires just because
people don't clean but it was cheap it's an interesting world out that if you
did find it useful then do consider sharing it with a friend or family member
you could benefit I would really appreciate it and my best friends of 2021
click here for an Instagram story the crashes over in here my name is ExamnewsBD.
Peace!