Cryptocurrency - help me understand please.

After electric. In 2020 I had 13 gpu earning $1000/month, but some equipment was inefficient and created too much heat. So much heat that I moved everything to a tent with 2 800cfm fans and an a/c unit. Cooling and inefficient gear really ate up $500, and with my normal use with 3 kids it went to $700 a month by summer 2020. So 2 years later, I am well educated and trying to avoid making mistakes. Plus, gear is cheap again. My electric rate is $0.16kwh Here is my personal favorite guy on YouTube.

 

You buy the equipment, it generates money. It's much simpler than trying to figure what's wrong with the DEF system.

 

This is the operating system I use to mine, called HiveOS.

https://hiveon.com?ref=342135

I am going to try mining in the semi truck. It worked with my laptop, so why not? Plug in to shore power somewhere overnight lol.

 

Nothing I currently own has a def system. That probably explains a lot about me. Lol

 

Pretty sure Bitcion was started as the Currency of Choice for the; darkweb but with the insanely low Interest rate environment. It has become a bit more mainstream as people Chase Yield...

 

It is like a Tulip Mania, one day people are going to lose crap load of money in crypto coins and nft.

It might very well be a reason for next global economic crisis

 

I just watched recently the Gordon Gekko Wallstreet movie where the tulip mania is part of it. My guess is years from now your tweet will have aged very good.

 

If crypto is nothing, then why do you have to mine it?!! Someone with the patience of Job, please explain it to me, I cannot wrap my head around this. And to borrow a line from the movie "Margin Call", speak to me as if I was a child or a Golden Retriever. Lol

 

"Oh, biiiigggg stretch! Whose a good boy? Fetch daddy a beer!"

The only true commodity is labor. All other commodities are defined by other factors, the chief of which is how much labor does it take to acquire the commodity and how much labor it can command.

All paper currency is a stand in for commodities, with the total supply being controlled by a government entity, who assumes the cost of producing and maintaining the money supply. Banks, companies, and individuals all keep track of their own money and we muddle through.

For crypto, every transaction needs to be recorded in the block chain. Those who make the records are compensated for their labor with new coins. This is 'mining'.

 

First off the standard disclaimer, always research and do your due diligence before investing and never invest any money that you cannot afford to lose. This applies irregardless of asset class as you can lose your shirt in the stock market as well as with real estate. It all has risks. Also be advised that I am not a certified financial advisor and you shouldn't take financial advice from random people on the internet.

That out of the way, crypto is digital currency. The digital tokens are designed as an alternative medium of exchange to allow direct peer to peer cash like transactions from any two points on earth. If I wanted to give you money and we're too far away from eachother for me to hand you cash then I'd have to involve a regulated third party. If you are somewhere like Russia for example this could prove difficult. Crypto was designed to solve that problem. As long as we both have an internet connection I can deposit tokens into your digital wallet.

Cryptocurrencies based on the block chain are decentralized meaning no one entity can control it. Ole Yoshi created something that even he himself could never control.

Most crypto investment is speculative. People purchase tokens in hopes that they will go up in price. It's the old "buy low and sell high" that's not unique or new to the financial markets.

Next disclaimer, past performance is not indicative of future results. That said bitcoin on average doubles every two years. Each "crash" so far has been to a higher floor. If you go into it expecting to get rich quick you might get lucky but you'll most likely get burned or as those in the crypto forums say "rekt". However to date bitcoin and etherium has rewarded those who have held long term.

Many investors are also looking towards crypto as a hedge against inflation like gold and real estate which are also popular right now amidst inflation concerns. Again, do your own research, don't take financial advice from some random truck driver on the internet and never invest more than you can afford to lose. I wish you well on your financial journey.