Proof-of-work cryptocurrency is backed by the destruction of wealth. Not wealth held in escrow like the gold standard, but taking something valuable and converting it into waste. A normal payment processor uses a thousand times less resources per transaction and will only become more efficient as technology becomes ever more optimised, while proof-of-work scales the difficulty of processing a transaction to counteract such improvements.
The fact that you have to "destroy" something valuable to make BTC is a good thing. It gives it inherent value as anyone who created one values the BTC more than the energy and hardware required to create it.
The people mining Bitcoin don't do it because they value Bitcoin, they do it because you value Bitcoin. They're not going to buy your Bitcoins off you - they're already earning their own Bitcoins which they need to sell for other stuff.
No it doesn't. If I break into your home and shit in your bed, it's something that required me to destroy your window or your door as well as said bed, but that doesn't make shit it inherently valuable, because it's shit in a bed.
Everyone will tell you what you should and shouldn't invest in so I can only give you my opinion. Disclaimer: this is not financial advice.
Other than bitcoin and etherium, just for being the biggest and most well known, I'd look at privacy coins and coins with functional use outside of a currency. In my case I have monero and cardano.
I barely know enough about crypto but is etherium worth it? I don’t need mega millions just something I could maybe help get a down payment of a not piece of shit house
So I should be clear, with the way I'm investing, I'm using crypto as a store of value, like physical gold, with the idea that all these wealthy people and institutions are also betting on the price to rise. Though I've made a profit here and there, it's nowhere near what some people have made with say dogecoin. But at that point, the risk is so high I might as well go to Vegas and play blackjack. At least I know what my odds are.
Proof-of-work cryptocurrency is backed by the destruction of wealth. Not wealth held in escrow like the gold standard, but taking something valuable and converting it into waste. A normal payment processor uses a thousand times less resources per transaction and will only become more efficient as technology becomes ever more optimised, while proof-of-work scales the difficulty of processing a transaction to counteract such improvements.
The fact that you have to "destroy" something valuable to make BTC is a good thing. It gives it inherent value as anyone who created one values the BTC more than the energy and hardware required to create it.
The people mining Bitcoin don't do it because they value Bitcoin, they do it because you value Bitcoin. They're not going to buy your Bitcoins off you - they're already earning their own Bitcoins which they need to sell for other stuff.
No it doesn't. If I break into your home and shit in your bed, it's something that required me to destroy your window or your door as well as said bed, but that doesn't make shit it inherently valuable, because it's shit in a bed.
I have money in gold/silver but I figured lit wouldn’t hurt to throw a little in different crypto coins. Thanks for breaking this down for me
Everyone will tell you what you should and shouldn't invest in so I can only give you my opinion. Disclaimer: this is not financial advice.
Other than bitcoin and etherium, just for being the biggest and most well known, I'd look at privacy coins and coins with functional use outside of a currency. In my case I have monero and cardano.
Cool! Thanks. I have learned with stocks that in some respects it’s a guessing game and being able to read trends.
I barely know enough about crypto but is etherium worth it? I don’t need mega millions just something I could maybe help get a down payment of a not piece of shit house
So I should be clear, with the way I'm investing, I'm using crypto as a store of value, like physical gold, with the idea that all these wealthy people and institutions are also betting on the price to rise. Though I've made a profit here and there, it's nowhere near what some people have made with say dogecoin. But at that point, the risk is so high I might as well go to Vegas and play blackjack. At least I know what my odds are.