The Wolf Den #426 - Crypto Doesn’t Have To Be Confusing
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This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. Occams Razor: "the simpler explanation of any two competing theories is preferred."My intention with the newsletter is to break down the complex aspects of crypto into ideas that everyone can comprehend. I aim to demystify the topics that I feel are most important and to share what I learn as I go. I am a student as well. I try hard not to overcomplicate the subject matter. On the surface, crypto is actually quite easy to understand. Bitcoin can be considered digital gold, cryptocurrencies can be thought of as a new digital asset class, and blockchain is akin to a new version of the internet. Obsessing over the details can cause us to lose sight of the forest for the trees.KISS - Keep It Simple, Stupid.Today I want to simplify a few complex ideas, starting with the infamous term "blockchain."The first time someone hears about blockchain, they typically have a litany of complex questions, trying to better understand how the system works. Imagine explaining the internet to someone for the first time and they respond by asking how HTML and SMTP function. Knowing what these acronyms stand for is a Jeopardy question in and of itself. If it is your first time learning blockchain and you are hyper-focusing on terminology such as node, distributed ledger technology, SHA-256, forks, etc., then you are making your life far more difficult than it needs to be. Keep the idea simple. Think of blockchain as a digital collection of blocks that store information in chronological order. Once you can grasp this, then slowly work your way into new ideas. Blockchain doesn’t have to be messy.Ethereum is another asset that is widely misunderstood. Even the Ethereum foundation and Vitalik Buterin have to constantly work on defining Ethereum's purpose by cleaning up the roadmap, terminology, and definitions. If someone can understand that Bitcoin is like digital gold, then they can likely grasp the idea that Ethereum is programmable money. Bitcoin works well because the code is solid and fixed. Ethereum works well because the code allows for creativity and flexibility. The token itself can be thought of as the oil for the system. We use the term “gas,” but as long as you can imagine the token serving the purpose of powering the system, you are there. Ethereum is the world’s most programmable blockchain. Don’t overcomplicate it.The last concept I want to break down is the cryptographic wallet. Wallets are the simplest concept but are still mischaracterized and misunderstood. Cold wallets and hot wallets become simple if you can remember that “hot” means online and “cold” means offline. Cold storage is generally understood to be safer. From here, the only other thing to remember is the difference between your public keys and private keys. The public key is for sharing — similar to your bank account details you give a friend. The private key is NOT for sharing — similar to your internet banking password. Just use common sense here. Public information can be shared, private information should not be shared. Don’t get wrapped up in the nuances of wallets - key generation; multi-sig wallets, and API add ons. There will be a time for this as you dive deeper. Instead, practice setting up 2FA and whitelisting.Fully understanding the nuances and complexities of crypto is a lifetime pursuit, and a road that most people have no need to travel. Keeping it simple is almost always a better strategy - then you can focus the rest of your time on choosing the right investments.In This Issue:Crypto Doesn’t Have To Be ConfusingBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsThe Truth Behind Buy And Sell WallsThailand Drops 15% Crypto TaxBillions In Bitcoin From Bitfinex Hack Are MovingIndia's CBDC Is Coming, Alongside A Crypto TaxThe Wolf Of All Streets Podcast Ft. Graham JenkinsMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO
The Wolf Den #426 - Crypto Doesn’t Have To Be Confusing
The Wolf Den #426 - Crypto Doesn’t Have To Be…
The Wolf Den #426 - Crypto Doesn’t Have To Be Confusing
This newsletter is sponsored by PHEMEX, the world's best crypto exchange for both spot and leverage. Sign up with the link above and get some free Bitcoin - up to $3600 worth. Occams Razor: "the simpler explanation of any two competing theories is preferred."My intention with the newsletter is to break down the complex aspects of crypto into ideas that everyone can comprehend. I aim to demystify the topics that I feel are most important and to share what I learn as I go. I am a student as well. I try hard not to overcomplicate the subject matter. On the surface, crypto is actually quite easy to understand. Bitcoin can be considered digital gold, cryptocurrencies can be thought of as a new digital asset class, and blockchain is akin to a new version of the internet. Obsessing over the details can cause us to lose sight of the forest for the trees.KISS - Keep It Simple, Stupid.Today I want to simplify a few complex ideas, starting with the infamous term "blockchain."The first time someone hears about blockchain, they typically have a litany of complex questions, trying to better understand how the system works. Imagine explaining the internet to someone for the first time and they respond by asking how HTML and SMTP function. Knowing what these acronyms stand for is a Jeopardy question in and of itself. If it is your first time learning blockchain and you are hyper-focusing on terminology such as node, distributed ledger technology, SHA-256, forks, etc., then you are making your life far more difficult than it needs to be. Keep the idea simple. Think of blockchain as a digital collection of blocks that store information in chronological order. Once you can grasp this, then slowly work your way into new ideas. Blockchain doesn’t have to be messy.Ethereum is another asset that is widely misunderstood. Even the Ethereum foundation and Vitalik Buterin have to constantly work on defining Ethereum's purpose by cleaning up the roadmap, terminology, and definitions. If someone can understand that Bitcoin is like digital gold, then they can likely grasp the idea that Ethereum is programmable money. Bitcoin works well because the code is solid and fixed. Ethereum works well because the code allows for creativity and flexibility. The token itself can be thought of as the oil for the system. We use the term “gas,” but as long as you can imagine the token serving the purpose of powering the system, you are there. Ethereum is the world’s most programmable blockchain. Don’t overcomplicate it.The last concept I want to break down is the cryptographic wallet. Wallets are the simplest concept but are still mischaracterized and misunderstood. Cold wallets and hot wallets become simple if you can remember that “hot” means online and “cold” means offline. Cold storage is generally understood to be safer. From here, the only other thing to remember is the difference between your public keys and private keys. The public key is for sharing — similar to your bank account details you give a friend. The private key is NOT for sharing — similar to your internet banking password. Just use common sense here. Public information can be shared, private information should not be shared. Don’t get wrapped up in the nuances of wallets - key generation; multi-sig wallets, and API add ons. There will be a time for this as you dive deeper. Instead, practice setting up 2FA and whitelisting.Fully understanding the nuances and complexities of crypto is a lifetime pursuit, and a road that most people have no need to travel. Keeping it simple is almost always a better strategy - then you can focus the rest of your time on choosing the right investments.In This Issue:Crypto Doesn’t Have To Be ConfusingBitcoin Thoughts And AnalysisAltcoin ChartsLegacy MarketsThe Truth Behind Buy And Sell WallsThailand Drops 15% Crypto TaxBillions In Bitcoin From Bitfinex Hack Are MovingIndia's CBDC Is Coming, Alongside A Crypto TaxThe Wolf Of All Streets Podcast Ft. Graham JenkinsMy Recommended Platforms And ToolsIF YOU HAVE ANY ISSUE WITH THE NEWSLETTER OR YOUR SUBSCRIPTION, PLEASE CONTACT: PREMIUMSUPPORT@GETREVUE.CO