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STAY GOLD, Investing, Coin Supply, Crypto-Assets and the importance of Project Value.

By L0S3rC0D3r | L0S3rC0D3r | 23 Jan 2020


-DISCLAIMER-


The information here is not meant to be truthful financial advice, you should always make your research and invest at your own risk. As you could win profit, there's also likely to lose, given enough time. The only advice I can give is that never put at stake money that you are not willing to lose or need.


As I promise on my previous post, I will post a table of stake-able (hot and cold) coins currently at the top 100 market cap cryptocurrencies, only, later. Ill add more coins in overtime. And in posterior posts I will make an analysis on every cryptocurrency, in therms of their project value, price and legacy. So stay tuned!

 

Why its important to invest... in cryptocurrencies.

I recently looked at an interesting video on Youtube explaining ideas about saving versus investment, I won't share it here since will go out of the reach of scope of this post, but you can look for it in the sources, is in Spanish but with good quality translating subs.

I'll take an important idea from the video. "While a young person with 50 years (600 months) ahead of working utility decides to retire millionaire, he has two ways of reach his goal. Given the person decides to save. He will need to save up 1,666 (any currency) every month for reaching his goal, or the second path, the person finds an investment plan with an interest of 10%, and the person will only need to save 70 a month.". Pretty much everything in life is an investment, just to be clear, not just money.

Crypto-Assets

Assets are things that can have a profitability, and those usually are rare or have some kind of value intrinsic to their existence. Things that people value and are not consumable, and through the ages there hasn't been a better asset than gold, once the money of the old world.

Despite that you could change most goods that the people needed (i.e. food, clothes, housing), gold was everlasting and most valuable than a gold coin worth of bread or land. It where the wooden chests filled with gold and jewels what could ensure power and wealthiness among rulers, religions, regents, kings and alike.

Gold Prices over the last two centuries

Source

Some things changed overtime, no one can deny that some things never changed, what it did considerably is the digitization of pretty much of our lives, because is easier to handle all the complexity through  the "data-processing" monsters that are computers (if you ask me, those ones are the true gold - and literally made of). Among this who could have though that we could digitize gold itself. You don't believe me? Let me explain why you can consider cryptocurrencies (Blockchain) as a true asset, comparing it to the prime characteristics that made gold the standard currency for centuries, at least until the past century, where the gold standard: "You could convert paper money into an amount of gold" got replaced by the current fiat money." 

Probably you have heard of the first-principle statements that made of Bitcoin what it is today, a currency source

  • "It should be free from the control of any authority so that it cannot be manipulated and printed at will (and devalued), and nobody can tell anyone what they can and cannot use it for."
  • "The currency should be borderless, so that it can be easily exchanged across any location with anyone."
  • "It should be apolitical, so as to not favor a specific system or group of people."

Plus...

  • Private
  • Non-consumable.
  • One way transfer, no loss, tampered or copy of the value asset.

 

GOLD IS THE FLESH OF THE GODS

This was the statement of ancient Egypt civilization, where they literally covered their tombstones with the precious metal. Also here where the first place to have evidence of the first interactions with gold, about 6,000 B.C. Differentiated from other valuable metals, rare like they where unique, silver, bronze. But not like Aluminum, as incredible sounds. Gold could be combined with precious gems mostly because jewelry and accessories that where valuable, and gave some kind of status in social hierarchy to the people around and magnificent to sight! In fact, this was what we inherit from the Greeks.

But as this point in time, what is the use of Bitcoin, other than a block of salt in the ancient Rome, where the word "salary" comes from, or anything at all. Can it really beat gold of today?

Probably you are familiar to the statement of W. Dai (1998): 

"I am fascinated by Tim May's crypto-anarchy. Unlike the communities traditionally associated with the word "anarchy", in a crypto-anarchy the government is not temporarily destroyed but permanently forbidden and permanently unnecessary. It's a community where the threat of violence is impotent because violence is impossible, and violence is impossible because its participants cannot be linked to their true names or physical locations."

Other than the fact that gold is beautiful to sight as the light of dawn, there were the source to many conflicts and disputes. And a source for custody and safe-keep of power among people. This statement might not be truth. Conflicts mostly where for land or for crops, even vengeance and tribulation. If in a established government, if there's gold where you can exchange it, for anything that civilization can provide, for almost anything more than those jewels, what then? People give it value in the first place, that's why-- 

GOLD IS SHINNY SHINNY!

"The symbol of gold is Au, from the greek word aurum, which means glow of sunshine. The English word gold comes from the words gulb and ghel referring also to the color. It is the only metal of this color. The gold's characteristic yellow color is due to the arrangement of its electrons." Gold has been around civilizations dating back as the paleolithic age far as 40,000 B.C.

Bitcoin also as a reason for existing it needed to avoid this kind of loop holes within the currencies of today that are a reason for treachery and bad behavior in our world, since it cannot be control by regents to manipulate their politics or ideals. Just a valuable asset for everyone without distinction. 

STAY GOLD, THAT DOES NOT RUST

Bitcoin is just that. It never rust nor gets destroyed, because of his value. But seriously, "Blockchain" is like a living organism, that does not corrupts. Protects veracity and stays put for the transactions be a one-way only, for a sender and receiver, and never get modified or steeled in the mist of a battle! 

Cryptography is considered a weapon among governments, and surely this is what is made Blockchain, a tool for avoid the tamper of information, for avoiding the spot of signals of war. This is why there's some controversy about get to know this kind of technology and its use cases among common folks like my self.

There's a catch for keeping the trust value of gold, requires energy, not in the form of countless wars, but in the form of paying every user and terminal with lots of gold and lots, and LOTS of energy. For keeping alive the Blockchain or the straight and loyalty of our knights.

THE IMPORTANCE OF PROJECT VALUE ON CRYPTOCURRENCIES

GOLD IS USEFUL, GOLD IS SCARCE

Now more than ever, the price of gold is rising up, I'm sure this has to do most with his use cases rather than its old intrinsic value. It is most valuable in the electronics industry and scientific use cases, plus is a scarce asset. Which makes it more expensive.

It is stated that Satoshi Nakamoto mined the first bitcoins, the widely know "genesis block" with a reward of 10,000 of bitcoin. A stack so valuable that if they were expended and roam free in the blockchain, Bitcoin would lower in price...

I'm sure that the Ethereum blockchain and their smart contracts, are making a good job ensuring the true value of the cryptocurrencies. Smart contract is simply another word for "Decentralized applications", run by assets that are decentralized and carried out by the users that make use of them. I can't say to much about which applications, but I'll talk about them in other posts.  

COIN-SUPPLY

Stackable coins are capable to give two advantages to a crypto-investor, they can either have a coin-supply cap, and they can be more expensive on the run, and they add a compound effect by multiplying themselves on the mainnet. Not all stakable coins have a limited supply, in fact, Ethereum is inflationary along with as well as all their ERC20 (ethereum base) coins, this means that the more coins there are, the lower the price of the currency. This is just like the real world money. A dollar or euro back then, had more value than current value. So maybe is wise to seek for a coin with a limited supply and stakable option. Not quite. You see, there are countless of danger species that could go extinct. But they are not valued among men... and this applies to the real world. Money will still be printed, and will still remain to lost its value, but that's it for a currency, when its no longer used by a wealthy man to bring services unto the not wealthy, then there's is really no need or value for it.

I SHALL NOT SHARE THE BOOTY, I'LL RATHER SINK TO DAVY'S JONES LOCKER, THAN BEING IN SHACKLES.

A private transaction that is hold secretly and secure on a chest at a remote island is out of the look of governments its primarily the cause why there is a double sword beneath Blockchain. A utility that can finance operations, and nobody can trace guilty like is used to. This also saves from taxes the rich, but can also the poor roam free from the shackles? This is way to much of a discussion to talk and ramble about later. All I can say its that I were saved by a government health care, and if were not for them I would not be here writing this, currently health and beneficial government institutions are bleeding red numbers on their balances for the lack of funds that, probably the governments steel or the rich are not enough taxed.   

NOT ALL THE TREASURES ARE GOLD AND SILVER

What would happen, once there is no need for a currency, would Bitcoin lost its value? Definitely. Would stop be mined, yes! But not because of computing, probably we already have a quantum computer with more power than all out computers combined in today. 

Even worst. The need for a currency that can convert anything to goods and services its done by a machine turning the tide.

"In fact, the whole world that is destroyed for the greed of common folks like me. The world its way to valuable. We are lucky to made it far into this moment, Blockchain is already a game changer for me, it let me the possibility of investing through the world! But hopefully I can do more than just rambling about world decay on a blog. Hopefully you can help me, just spread the message, let them know how we can make a world distributed and just with Blockchain, not only to survive and thrive in the seek of our ends..." L0S3rC0D3r

Photo by Igor Kasalovic on Unsplash

I need to study more before making any more statements, but let me know if I definitely need to be more strict with my sources and emotions presenting these matters. Hopefully you understand my lack of illiteracy trying to talk about cryptocurrencies from facts than "telling a stories".

 

 

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