August Thoughts

Crypto Ponders In Public

Someone behind me in line at the gas station was talking to the cashier about Bitcoin with the customer saying loudly “it’s a scam, you can’t touch it”. The conversation started with me asking the cashier, who I see often “Does anyone use the Bitcoin ATM?”. From my understanding, ATM machine bitcoin transactions are where the criminals go because of just how sketchy it seems. They both agreed that crypto is a Ponzi scheme though, and some crypto is. Which sucks because some people clump that together thinking Bitcoin is a scam. I just learned that “Ponzi” is a capitalized word, but my thoughts are that scams in crypto are like scams with dollars. Is Bitcoin or Ethereum a scam? No. It’s a technology and with new technology comes to trial and error times and this is just one cycle of Bitcoin, the first in the mainstream. In 2018, Bitcoin had what happened last year but it was just a smaller pump to only $20,000 per Bitcoin or so. Then it dropped way down like what has happened recently with Bitcoin. One thing and maybe the most important thing about the Bitcoin ATM in town is that it doesn’t offer to buy Ethereum. It’s just Bitcoin, and I honestly feel the easiest and simplest way to buy Bitcoin is Cashapp, it only does Bitcoin also because that is the main cryptocurrency. Ethereum is possibly even better than Bitcoin in ways but Cashapp wants you to buy Bitcoin only because the owner of that phone app only likes Bitcoin. Coinbase had an insider trading scam going on from what I read online, a worker was telling people which coins were being listed next to Coinbase.

Crypto In A Bear Market

Some crypto has pumped since reaching a bottom, and overall if you bought the dips, you wouldn't be down that much for a bear market. No one knows when the bottom of the drop will hit and when Bitcoin will bounce back into a bull market. As of today, Bitcoin and Ethereum seem to both found a bottom but no one knows so it could drop further. I think most web3/crypto people think Bitcoin and Ethereum will follow technology stocks and bounce back. There is so much that affects the price and also is somewhat manipulated by whales. Whales are people or organizations that own a large about of Bitcoin. Smaller retail investors in crypto are called shrimps, and the total supply of Bitcoin is 21 million. Bitcoin is broken down into units called Satoshis, named after its creator. There is a mixture of groups that I share this blog with, so somethings people already know things already but also not so many others. DCA’ing, or dollar cost averaging has been a popular strategy for crypto people, basically accumulating as much Bitcoin and crypto as possible during a bear market at low prices. 

Defi scams vs ETH staking

Sometimes when typing these blogs about crypto now rather than music the past two years has me wondering how much more about a topic I know than others. I am simply trying to explain the stuff I try to learn or already know, in the simplest way I can. Defi, or decentralized finance, had many platforms offering money to people if they stake a certain amount of cryptocurrency on that platform.  Like Celsius, Block Fi, Terra, Voyager, and Compass, all these places people thought would last and were staking with them, they all lost their funds. The meme here I share of this Spiderman pointing at each other; it was sad to the Incubators but not for me. I knew that these random ass exchanges were becoming so popular because you couldn’t tell which one was better than the others unless you used them all. There is a difference though in Ethereum staking, and Ethereum is now switching from proof of work to proof of stake. Proof of stake is the same as those sketchy previous platforms that failed but this is Ethereum being staked. It’s better for the environment and makes Bitcoin seem like the devil since Bitcoin is proof of work mining. At block 15,050,000 of mining Ethereum, it starts getting harder and harder for Ethereum to mine by making it just more difficult to mine. That is supposed to happen sometime in September of this year.

Ethereum Classic is Ethereum just proof of work, and mining, and it looks like it’s going to be around along with the Ethereum merge. In the fall Ethereum is supposed to switch to a greener, or clean and less energy costing.  ETC vs ETH is looking like a competition now as some people want to still mine with proof of work on Ethereum Classic. Compared to the new Ethereum merge to proof of stake, and so now we have ETC pumping.

NFTs

The Incubator is still doing an NFT show when the NFT market is at its lowest price value in a long time. I don’t really know that much about NFTs other than most in the Incubator but I do know more than the average person. I had a bunch of Opensea NFTs of my art and photos way back but they didn’t sell. Smart contracts come with NFTs too, which as just contracts in code put onto the blockchain. Scams definitely happen with NFTs because people most likely don’t know what they are doing. The technology of Non-fungible tokens is here to stay and will evolve over time. Some people also just don’t have any random urge to purchase a duck or chicken cartoon photo on the internet. The urge to buy an NFT for $100 and sell it for $600 or $700 is different because there is a whole way of flipping NFTs in short term from what I understand. That is more of what the NFT channels in the Incubator focus on and they call good information ‘alpha’. It seems like you want to just be on the list to purchase a photo and then since you get on the list you can sell to others who didn’t get on the list but want the jpeg photo.

The NFT show the Incubator does on Thursdays will have the latest news on NFTs since they understand it so well they have started teaching others. One thing about NFTs that is a reason why I haven’t bought any, is that you can’t sell anytime you want. You need to have a buyer for the NFT.

Be a nice human.

 

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