Things You Need To Know About Crypto-Currencies
A) CRYPTOCURRENCIES ARE NOT A FAD
For instance, 2000 years ago if you got ill, you assumed you had sinned, or you would pray to get better, or you would assume a god was punishing you. 20 years ago, you’d go to a doctor and take two aspirin. And now, you get EEGs, fMRIs, genetic testing, etc to diagnose and determine best solution.
These trends are not going away. They solve massive problems created by the scenario before them and crypto is front and center for both of these 5000 year old trends.
B) CRYPTO CURRENCIES ARE NOT CRYPTO
I wouldn’t say, “It’s a software application that sits on top of the TCP/IP protocol.” Nobody would say that. But, in fact, that’s a valid way to describe what Amazon.com is.
“Crypto” refers to the aspect of Bitcoin that makes it secure. It uses a branch of math called “public key cryptography”. But knowing this provides basically zero value in understanding of cryptocurrencies other than it is secure in a way confirmed by mathematicians.
Better to call it “data currencies” or simply “currencies”.
C) CRYPTO CURRENCIES ARE NOT CURRENCIES
A currency is two things:
– a store of value: e.g. One can say, “I have $1,000,000”. That’s a number stored in the bank. It’s the value of net worth the person saying it has.
– a transaction mechanism. e.g. with $1 I can go into a deli and buy a cup of coffee.
Bitcoin is the first but not the second (unless you want to wait ten minutes every time you buy a cup of coffee).
And many other crypto-currencies are the second and not necessarily the first.
D) CRYPTO CURRENCIES ARE CONTRACTS AND WILL EVENTUALLY REPLACE ALL CONTRACT LAW
The rise of ICOs (Initial Coin Offerings) are because you can program functionality similar to contracts into a coin.
For instance, a coin called “Filecoin” has an implicit contract that whoever owns a file coin is also allowing (by the contract embedded in the coin) that people can share files on that coin. It creates a decentralized dropbox.
Cryptocurrencies can be used now to replace escrows, wills, and many other types of basic contracts. The entire field of contract law is a $400 billion market or more and will be completely replaced (and lead to the rise of) by legitimate cryptocurrencies.
E) 95% of CRYPTO CURRENCIES ARE SCAMS OR WILL GO TO ZERO
Like any field that is “hot” the scammers have arrived. Ponzi schemes. Fake currencies. hacked exchanges, etc.
But, like in every field of life, this will get regulated, criminals will get caught, and the legitimate coins will thrive. This is exactly like the Internet in the late 90s. You didn’t want to avoid the Internet then because of the enormous gains. But you did want to avoid the scams.
F) THE US GOVERNMENT SECRETLY LOVES CRYPTO CURRENCIES
How else will they transport millions of dollar into war-torn countries to pay off war lords and terrorists. If you think this is conspiracy theory, think again.
It will create generational wealth, and I want my readers to be aware and positioned to take advantage of this trend. Click here to enter your name for a chance to win!