ART, PROPAGANDA AND CRYPTOCURRENCIES: WELCOME TO THE UNIVERSE OF HODLCRYPTO

“He is a self-described cryptocurrency advocate, and despite having a master’s degree in science of finance, his current job has one objective: to convince as many people as possible about the potential of cryptocurrencies through art. To do this, he has developed an artistic propaganda project promoting the use of cryptocurrency, under the pseudonym hodlcrypto.”

The following interview is translated from the original version published by CriptoNoticias and authored by Javier Bastardo (criptobastardo).

CriptoNoticias had the opportunity to talk with artist Luis Poletti , who said that despite having completed high-level studies, nothing he studied then is part of what he does now. “It’s pretty ironic,” he said.

For him, this training taught him that economies need central banks for stability, while his own research showed him that these institutions are “the root of evil in this world”.

I would say that more importantly, everything I learned opened my mind to the idea of ​​Bitcoin, ” he said. He currently lives in Guadalajara, Mexico, where he settled in order to better develop his cryptocurrency art project.

Before devoting himself completely to this crypto art and propaganda project, he developed a line of similar designs, but with an eminently political theme named “pololitics“:  “My career in digital art and previous projects focused on political issues such as media manipulation, conspiracies, and the banking system, “he said, assuring that the art inspired by propaganda also “matches well” with his personality.

One of his emblematic designs combines the masks of Guy Fawkes and Fsociety with Bitcoin. Source: hodlcrypto.

“It’s important to take risks as an artist and not be conventional, as long as it’s authentic. My art, besides being my work, is my life project. I’m consumed by it. This is not something I’m doing to seek short-term rewards or gratification. I am doing this because I believe firmly in the future of cryptocurrencies, and if I devote my energy to this, the effects will remain even after my physical death.”

Luis Poletti

Cryptoartist, Aka hodlcrypto

According to him, he began using Bitcoin in 2015 but his first investment was made in early 2017. For him, Bitcoin is the central currency, which opened the way for the multiplicity of cryptocurrency projects that currently exist.

“For me, Bitcoin is king (…) Every other coin and token owes Bitcoin something for the creation of the blockchain, ” he stressed, although he was also interested in other projects such as IOTA due to the potentialities of the Internet of Things and its relationship with the cryptocurrencies.

Decentralize and Be Your own Bank

In addition, blockchain technology and its operation at the service of Bitcoin has proved to be a success, especially after 9 years of the implementation of the project designed by Satoshi Nakamoto. On the latter, Poletti affirmed what he “constantly glorifies” through his works of art.

“Satoshi is the anonymous father of the cryptocurrency movement and demonstrated tremendous foresight in the way he built the economic incentives into securing the Bitcoin network (i.e. mining) and wrote a code that has survived 10 years now without a successful attack. In my opinion it is the “digital gold” that backs the value of all other cryptocurrency.

Luis Poletti

Cryptoartist, Aka hodlcrypto

ART AND INFLUENCES

https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcRdccemeZivCF7UFayghQyu3QBWAVILvYmJy694Mmd2JAjwccCv

Source: Shepard Fairey, Obey

The artist said that his influences are varied, taking the best from different thinkers and academics from different areas of knowledge.

Thus, his work has been influenced by philosophers such as Friedrich Nietzsche , propagandists such as Edward Bernays , linguists such as Noam Chomsky , psychologists such as Carl Jung , and even comedians such as George Carlin , who coexist in the artist’s imagination with writers such as George Orwell , Aldous Huxley, and Ayn Rand .

In addition, regarding the propaganda style , he claimed to have used Shepard Fairey, aka OBEY: “The ideas obtained from these works always go through my mind when I conceptualize images,” Poletti said.

Advertising and war propaganda (especially that of the World War 2), the word art of Barbara Kruger , the Russian posters of Rene Mederos , and more recently Eugenia Loli are among the references in the pantheon of his crypto propagandistic inspiration.

https://encrypted-tbn0.gstatic.com/images?q=tbn:ANd9GcSp_WSBegO1qeHCJXWAx06_GPP6YibY67PTpftFbUuLgXELy6p4Bg

“Eugenia Loli does a great job juxtaposing different images in a way that provokes thought” explained Poletti. Source of the Image: Eugenia Loli .

As for cryptocurrencies, he explains that John McAfee, Charlie Lee, and Dan Larimer are currently his main references, qualifying McAfee as “the face” of the ecosystem.

With all these influences to to draw from, hodlcrypto constitutes a positive propaganda movement in favor of cryptocurrencies, where the handling of colors, symbols and composition are interspersed with words, since, according to Poletti, a “large part” of his inspiration comes from written word:” I use words as a central communication vehicle and images are the complement “, he emphasized.

“I find the word ‘HODL’ quite versatile, in addition to its ability to capture the attention of outsiders.

“In a way, ‘HODL’ is my version of ‘OBEY’, and I found it to be the perfect command to use in propaganda designed for the cryptocurrency movement,” he said.

“One of my main ideas is to use direct language and join these phrases with the command ‘HODL’ or ‘HODL CRYPTO’ to force people to confront the subject of using cryptocurrency. Also, it reminds current users of cryptocurrencies who are concerned about short-term price fluctuations to think long term.”

Luis Poletti

Cryptoartist, Aka hodlcrypto

Recall that HODL is a word originated within the bitcoin community, derived from a typographical error of the word “hold”, in reference to the strategy of not selling the cryptocurrencies that are owned in spite of price corrections over time. In his work, it has become as important as Fairey’s OBEY, being the “perfect command” for the case of cryptocurrencies.

“Language is a powerful tool and using it wisely can be crucial to awaken some emotion. Most of the time, words are the centerpiece of my work. ” Source: hodlcrypto.

[/caption]In addition, he said he likes to give his own spin to catchy phrases or quotes , use sensational headlines or slogans, and sometimes even put words in people’s mouths, as in a recent piece he made in reference to the American investor, Warren Buffett calling Bitcoin rat poison .

The logic of US investor Warren Buffet, who described Bitcoin as “rat poison”. Source: hodlcrypto.

[/caption]

THE CHANGE IN YOUR LIFE AND THE POTENTIAL OF CRYPTOCURRENCIES IN ART

He explained that Bitcoin has changed his life because it served as a means of investment to abandon his corporate career and pursue his two passions to “create art and promote the cryptocurrency movement.” Poletti said he was not afraid to take this risk, for something “I believe in and am passionate about”. “For me life is about creating and sharing, rather than acquiring wealth,” he said.

His propaganda and activism reflect a conviction that cryptocurrencies have a promising future. The tipping point in the adoption and use of cryptocurrencies can come from a strong response to the financial monopoly of banking and the end of the economy managed by the Central Banks. That possibility is worth the effort. But we need to continue convincing more nocoiners “to HODL”.

For him, it is necessary that those who participate in stable and productive economies can see the current scenario of cryptocurrencies and understand the benefits to start using them: “this implies the understanding of how central banks work in the way of systematically devaluing the physical currency and how blockchain technology and decentralized networks can solve this problem, “he argued.

“Art can be used to effectively direct the public’s attention to cryptocurrencies and help them learn about them and how important they are. This is what I am mainly focused on.”

Luis Poletti

Cryptoartist, Aka hodlcrypto

But it is not a technological fever, nor a snobbish movement . According to him, one of the most important elements of cryptocurrencies is the possibility of exchanging value directly and among peers , which can facilitate the emergence of a new economy, as well as support for all artists around the world.

Despite his perspective on the future and the potential he sees in cryptocurrencies, the artist also weighed the difficulties facing his development. Poletti pointed out two main difficulties: “the first is the scalability of the blockchain technology and for that we already have the most brilliant minds in the world to solve it. The second is adoption. ”

Currency Independence (Source: hodlcrypto)

 

As he said, art becomes “an instrument, and in my opinion is necessary and vital” to encourage the adoption of cryptocurrencies . As he explained, people tend to be resistant to change, and “if they do not have a reason directly in front of their face to start using cryptocurrencies they will not do it.”

However he clarified that an exception to this may be countries like Venezuela, “due to their economic situation led people to use bitcoin and other types of cryptocurrencies to escape the effects of inflation,” he said.

Poletti said he uses bitcoins and other cryptocurrencies, and predicted that “in the next decade, all traditional currencies, including the US dollar, will be replaced by cryptocurrencies”, as these instruments solve many of the problems of fiat currencies, assuring that it is “a truism” that the time of the old paradigm of money is almost over.

In that sense, he said that he only has one doubt left, whether they will be decentralized cryptocurrencies or fiat-cryptographic currencies. “I only have one question left, and that is if the decentralized cryptocurrencies such as Bitcoin, Litecoin, Monero, etc. they will remain at the top, or if the centralized fiat-equivalent cryptocurrencies will be created and ordered by global governments for all people to use.

CRYPTOCURRENCIES AND NEW PERSPECTIVES FOR ART

But just as art is a vehicle to encourage adoption, cryptocurrencies have also generated a transformation in art: “they have created a new way of appropriating pieces of collectible crypto-digital art,” as in the case of CryptoKitties . In addition, he said, is currently working with a crypto collectibles platform called ” Fan Bits “, where fans can get unique and limited pieces of art that are in the block of Ethereum and that are impossible to duplicate.

According to him, he has known the work of Pascal Boyart, aka PBOY and his system of collecting Bitcoins , complimenting the work he is doing in Paris, France, and adding that “the donation system is also very ingenious”.

He himself will undertake a street art project, with pieces aimed at the general public. “My idea is to create propaganda that will capture the viewer’s attention in such a way that it helps them to see the subject of cryptocurrencies in a new light, which will make them more likely to start using them. Once I start applying art to the streets, I will consider using a similar donation system for PBOY, “he said.

“I suppose that the users of existing cryptocurrencies will appreciate the art that promotes the movement of cryptocurrencies and that perhaps they want to donate”, he emphasized. In addition, he also said that he could soon work on Rare Pepe Art , highlighting the potential of the artistic community associated with this movement.

“The artistic community of Rare Pepe is paving the way for the blockchain art market. The artists that are getting involved now with the art of cryptocurrencies will be at the forefront as they gain popularity “, he emphasized.

Jamie Demon - Be Your Own Bank
Dimon, Buffet and other traditionally anti-cryptocurrency characters are part of the symbolic arsenal of hodlcrypto.

Finally, Poletti assured that “we are living a very important moment in art”. He added: “I believe that I belong to a generation of ‘warriors’ and we are in the process of challenging and changing the old system (…)

The interest that now exists in art has reached new levels. More people are relating art as a reaction to new technologies and certain negative elements that this entails “.

Poletti emphasizes in his designs and writings the need for users to investigate on their own. Art has served as a vehicle to carry this message.

DYOR

For him, despite the consumerist nature of today’s world, art still continues to move human beings, generating authentic and real feelings. ” People need creative experiences both physically and in the digital world that allow them to create a connection with art and help them feel something,” he said.

Javier Bastardo (criptobastardo).

Miss Natoshi’s full-time crypto lifestyle

Who is Miss Natoshi?

Miss Natoshi is one of those bold personalities in the crypto community who both talks the talk and walks the walk. Once the crypto world caught her attention, she did her homework, became a believer in bitcoin and the future of cryptocurrencies, and put her money where her mouth was.

The Full-Time Crypto  Lifestyle

It’s safe to say that Miss Natoshi is a serious crypto investor, always on the hunt for ICO’s and hidden gems with huge potential. She gets down in the trenches on all sorts of crypto exchanges looking for trades that pay.

Miss Natoshi is one of my favorite examples of an effective crypto influencer because she demonstrates both:

1) a high level of expertise and knowledge about the cryptocurrency markets, trading, ico’s and early stage projects

2) an admirable full-time crypto lifestyle, which can go a long way to get people excited about the prospects of investing in cryptocurrency

It’s safe to say that Miss Natoshi has made some great calls on lower cap cryptocurrencies, and has been able to demonstrate an enviable lifestyle as a result.

You can follower her Twitter and Instagram accounts to get a glimpse into the life of a full-time crypto investor, expert, and world traveler.

An exemplary Crypto Boss-Woman

As shown on her social profiles, you can see that, aside from her somewhat lavish, crypto-powered lifestyle,

Miss Natoshi is also involved in all aspects of crypto investing, from being a die-hard bitcoin bull

to keeping a close eye on the markets and prices for an abundance of different crypto projects

and having her own mining GPU rigs, with her own style applied to them.

She also contributes to 21Cryptos magazine.

Another thing that makes Miss Natoshi a great (and very needed) influencer for the crypto movement is the fact that she’s a woman.

She certainly is already an inspiration to many in the crypto space (myself included) and I’m sure with her continued success, she will be a key influencer for new crypto women. The fact of the matter is that there is a big shortage of females involved with cryptocurrency in general.

Cryptocurrency Gender Statistics

According to a Forbes statistic taken in 2017, only 5-7% of cryptocurrency users are female. That means that there is about 1 female cryptocurrency user to every 17 male users. This low level of crypto adoption from women is concerning for all members of the crypto community.

The success of cryptocurrencies depends on mainstream acceptance of blockchain technology. This means we need more crypto women!

Leader of the Crypto Vikings

Miss Natoshi also created and actively manages a telegram announcement group called MISS NATOSHI’S VIKINGS where she actively shares crypto-related news and information, bots with new exchange listings, memes and gifs, and new coins and ICO’s she’s interested in.

I personally have been a member of the Miss Natoshi’s Vikings group for the past three months and would definitely recommend it as a valuable source of information. I find some of the announcements involving ICO analysis and other early stage projects on her radar to be particularly valuable.

Join the Vikings

Miss Natoshi calls her group the Vikings because she believes that early crypto investors will be the new vikings of our day. This is because they will be building digital empires and exploring new lands of code.

Remember, neither Miss Natoshi or I are sharing financial advice, nor are we financial advisors.

This is not financial advice I am not a financial advisor…. Just a 👸🏻 BTFD.

Educating Women on Crypto

There is a big opportunity to further educate women on cryptocurrency and the changing technology world around us. Some women, like Miss Natoshi are stepping up to the plate to advocate for cryptocurrency and be an example for others.

Getting involved with crypto is risky business, as seen by the price volatility in the markets. In general, women may be more risk-averse, which is why there is a much lower participation rate among women.

However, if we can get more women to open their eyes to the huge potential for the future of cryptocurrency and blockchain tech, it will certainly bring more of them on-board.

More and more jobs are/will be opening up for people who have blockchain expertise or knowledge and it would be great to get some women filling these jobs. It’s a new enough field that women who join now can grow with the industry as it evolves.

What can YOU do?

Share your knowledge with women close to you – the basics of blockchain/crypto, the positive impact that it could have on the world, and how to get started and keep on top of all the changes in this exciting space.

Show them an example of a successful crypto woman like Miss Natoshi and the tools she uses and shares with the community.

Make sure the women you talk to understand it’s not all about getting rich and buying Lamborghinis. There is a much bigger picture here. It’s about changing many broken & outdated systems out there and making them more secure, safe, and efficient.

I encourage anyone reading this to talk to the women in their life about cryptocurrencies and sow the seeds of belief that will get them to join the crypto movement.

Hold On for Dear Life

Jamie Dimon A.K.A. Jamie Demon “The Fraud” vs. Bitcoin

Over the past few years, Jamie Dimon (CEO of JP Morgan Chase) has been the most outspoken critic of Bitcoin. Jamie Dimon, also known as “Jamie Demon”, the fraud himself, has gone on record numerous times over the years expressing his distaste for Bitcoin.

Recap of Jamie Dimon’s most infamous Anti-Bitcoin statements:

  • Jan 2014: “Bitcoin is a terrible store of value”
  • Nov 2015: “Bitcoin will not survive”
  • Jan 2016: “Bitcoin is going nowhere”
  • Sept 2017: “Bitcoin is a fraud”
  • Oct 2017: “Im not going to talk about bitcoin anymore”
    • “If you’re stupid enough to buy it, you’ll pay the price one day”
    • “The only value of a Bitcoin is what they other guy pays for it”
    • “Governments are going to crush it [Bitcoin] one day”

When given a chance to elaborate, Jamie has also stated that he believes that blockchain technology is a very good technology and it will be used for a lot of things. However, he made it very clear that he has an issue with any non-fiat based digital currency.

In this same interview from October 2017 on CNBC, Jamie goes on to discuss how governments like to track how money is being spent and also like to control their own currencies.

A lot of what he says is entirely off base in regards to whether or not Bitcoin is legitimate, however it is interesting how he does recognize that one of the main, legitimate use cases for Bitcoin is in the case of failing central banking systems. For example in Venezuela or North Korea. 

The truth about Jamie Demon and other bank CEO’s

The incumbent banking system, banks that comprise this system, and their corresponding leaders are not prepared for the coming shift in the financial power structure. It’s already changed, and it will continue to change more rapidly in the coming years.

People world-wide now have the ability to be their own banks, and the growth of cryptocurrencies and their corresponding price appreciation is a direct indication of the failure of fiat currency and the monetary policies of central banks, which are all doomed to soon fail.

The 5-year end-game for the banks

Within 5 years, it’s highly likely that there will be no JP Morgan or Chase bank. The blockchain revolution is coming whether the banks like it or not. The bankers can adapt to participate in the crypto movement and benefit immensely financially, but they will no longer have the power to make decisions that affect the world around us.

Banks will no longer crush us under the burden of debt. Wealth will be redistributed to all who participate in the cryptocurrency movement. There will be no more fractional reserve banking system to create wealth for the few at the expense of the many.

The financial “rent-seekers” are nearly out of time as a wide field of financial lending solutions based on cryptocurrency and blockchain technology are hitting the market.

My message to the banks: Adapt or die.

Hold On for Dear Life

 

Take the power back and be your own bank with cryptocurrency

One of the most powerful concepts, which once understood, will help convince people to begin using cryptocurrency is that you can be your own bank.

Using banks: great for them, terrible for us

Take a moment to think about how ridiculous the voluntary arrangement you have with your bank is. You entrust your hard-earned money with your bank by depositing it with them. Thanks to the fractional reserve system (the biggest scam in human history) your bank holds a small fraction of what you deposit and turns around and lends it out to others who need credit for a massive profit in the form of interest, which you get no cut of.

Your bank also imposes limits on what you can deposit and withdraw for your own “safety”, which can be immensely inconvenient depending on your situation. Other negatives include travel limitations for your “safety” and a host of fees including but not limited to monthly maintenance, overdrafts, international payments, ATM, card replacement, early withdrawal, etc.

Bank runs and capital controls

With all these negatives out of the way, I’d like to focus on the biggest risk and most terrifying possibility for any bank account holder – the “bank run”. A lot of the people i’ve personally talked to about the concept of “be your own bank” seem to be under the impression that bank runs are a thing of the past.Bank Run

Well-developed central banking systems and deposit insurance have no protections against a bank run. In fact, if all the deposits in U.S. banks were simultaneously requested to be withdrawn, it would take an estimated 20+ years for the U.S. just to print all this digital money that doesn’t actually exist as paper currency.

And for those who may be under the impression that bank runs and capital controls are a thing of the past, you need to think no further back than to the latest 3 examples, all within the past 5 years.

  1. Cyprus in 2013
  2. Greece in 2015
  3. India in 2016

US and other economic superpowers not immune

It’s important to note that more developed countries like the U.S. are in no way immune to this. The fact of the matter stands that when people want physical cash, banks will have a huge problem and they will be absolutely unable to facilitate even a small portion of these withdrawals.

Why is Bitcoin better?

Reviewing all the negatives about using banks sheds a bright light on the stark contrast between using banks and using bitcoin.

Bitcoin shares none of the negatives of bank accounts and at the same time incentivizes users much better to “deposit” (or hold) bitcoin. Bitcoin provides users with security. Sending and receiving bitcoin is easy and has no limits or extra fees aside from the transaction fees used to compensate miners for securing the network.

Bitcoin’s value is also very attractive in the middle of this low to negative interest rate environment. While interest rates are at historic lows, Bitcoin’s likelihood to continue growing increasing in price over time is much more attractive than interest payments that don’t even match the inflation rate. 

Bitcoin is also extremely portable. It’s easy to store on anything from hardware wallets to paper wallets, and even brain wallets. Yes, with the advent of bitcoin we have for the first time in human history the ability to store our wealth in our brains. Simply memorize your private key and hope that you don’t suffer from amnesia down the line (pro-tip: always back up your private key somewhere!).

Power to the people: BYOB (Be Your Own Bank)

Banks are worried about Bitcoin because it’s a serious threat to their current power structure. For a number of reasons, Bitcoin and other cryptocurrencies could make them entirely obsolete. Since Bitcoin has no liabilities or debts associated with it, it’s truly yours when you hold it. This type of asset is known as a “bearer instrument”.

There can never be a run on the “bitcoin bank”. Therefore, the biggest risk (a bank run – which is highly likely to happen again) is entirely absent from bitcoin. This is a huge reason that Bitcoin is superior. This is also why you should seriously consider BYOB’ing with Bitcoin and cryptocurrency. Be Your Own Bank!

Printing your own money is optional

Another major factor in favor of being your own bank with crypto is the ability to “print” (otherwise known as “mine”) your own coins.

Bitcoin and other major cryptocurrencies have a limited supply and pre-defined parameters for issuing the bitcoin currency which is created through mining. Unlike central banks, where a small centralized group of bankers entirely controls the issuance of the currency, the bitcoin code was written to continue issuing the precious cryptocurrency to miners until 2140.

Although Bitcoin mining is very competitive at this point and requires serious start-up costs, expensive mining equipment, and high energy expenditures, there are many other options for “money printing” in the cryptocurrency world. A couple of these options include GPU mining and holding PoS coins in wallets.

Summing up the benefits of Bitcoin over banks

Bitcoin has all the benefits of banking and more without the risk of capital controls. This is the main reason Bitcoin has grown so much in recent years, and continues siphoning value out of national currencies. All this is being done with Bitcoin’s main use case as a store of value and speculative investment vehicle. It has yet to reach any level of mass adoption to be excited about.

If you ask me, it’s a no-brainer to use Bitcoin and other cryptocurrencies over traditional banks. Either A) you hold your wealth in an institution that might never allow you to withdraw it when you need it the most and lose value in the form of inflation, or B) you hold your wealth in cryptocurrencies and benefit from better incentives and almost certainly increase the value of your holdings in comparison with fiat currency.

The choice is yours. Hold On for Dear Life.

Cryptocurrency basics – 3 key characteristics and why they matter

In order to believe in the crypto revolution, it’s important to understand the fundamental aspects of cryptocurrencies and blockchain technology that makes it so revolutionary. The 3 key characteristics of cryptocurrencies are that they are trustless, immutable, and decentralized.

Bitcoin: our first and most prominent example

Bitcoin is a cryptographically secure currency that was created to be used universally for payments, similar to cash. It was also created with the vision of Bitcoin replacing of all forms of fiat currency in mind.

As Bitcoin is the first cryptocurrency ever created, it is the first to exhibit the 3 key characteristics we will cover later on.

Because the Bitcoin code is open source, people have been creating their own versions of Bitcoin, a.k.a. “Alt-coins” for the past few years. The vision of Bitcoin replacing all fiat currency is becoming less realistic with bitcoin’s current dominance at 45% (less than half) of the total cryptocurrency market. 

As you can see from the trend, there have been some tremendous altcoin rallies that have chopped Bitcoin’s dominance down over time, bringing in a number of other strong projects to the market.

However, bitcoin and altcoins share very similar blockchain technology and the 3 key characteristics also apply across the board (in most cases).

These 3 characteristics we will discuss are the answers to the questions you might often hear from skeptics such as: “what makes cryptocurrencies so special?” and “How are cryptocurrencies any different than fiat currencies?”

1) Trustless

Bitcoin is trustless because it was designed in a way that nobody has to trust anybody else in order for the network to function.

Every form of currency before bitcoin required a central authority that you had to trust in order to use it. In all cases, that central authority becomes the central weakness that leads to the demise of the currency.

With bitcoin, each part of the ecosystem validates what the other parts are telling it without needing to trust anybody. If you broadcast a bitcoin transaction, all nodes receive it and verify that the signatures are valid. If the signatures are not valid, they discard the transaction.

Everyone on the network has a copy of the ledger so we no longer need to trust a single entity/organization/third-party because there is no need to trust when you can just verify against this ledger because you have a copy of it. The decentralized ledger is known as the blockchain.

The incentivization of individual network actors though the proof-of-work (PoW) consensus algorithm is one of the most groundbreaking ideas in modern economics.

“The incentive may help encourage nodes to stay honest. If a greedy attacker is able to assemble more CPU proof-of-worker than all the honest nodes, he would have to choose between using it to defraud people by stealing back his payments, or using it to generate new coins.

He ought to find it more profitable to play by the rules, such rules that favor him with more new coins than everyone else combined, than to undermine the system and the validity of his own wealth.”

— Satoshi Nakamoto

Although we are still figuring out exactly how we use cryptocurrencies and and what for, they are here to stay. Aside from the other major benefits of cryptocurrencies and blockchain tech, solving the centralized trust issue alone is a big enough innovation to give crypto staying power.

2) Immutable

“Immutable”, in its simplest sense, means “cannot be undone.”

Immutability in regards to blockchain and cryptocurrency should follow 3 principles:

  • It should be highly improbable or difficult to rewrite history.
  • It should be impossible for anyone but the owner of a private key to move funds.
  • All transactions are recorded on the blockchain. (to guarantee the above 2 principles)

 

When we want to check how money has been spent from our bank accounts, we check our transaction history with the bank. We trust our banks not to fabricate transactions or manipulate our money as we trust them to deliver our transactions to recipients.

If there are fraudulent transactions, the bank also needs to be trusted to change them and fix the situation.

Since the elements of centralization and trust are removed from cryptocurrency, there is no longer a third party for us to trust to do these things. Therefore, transaction records are made public and unchangeable (immutable).

Although it isn’t impossible to change the transaction ledger, cryptographic security makes it extremely difficult. It require you to compromise the entire network of cryptocurrency users.

3) Decentralized

Since “decentralization” is such a relevant buzzword in the crypto community, it’s important to define it well. It can take on different meanings.

“Blockchains are politically decentralized (no one controls them) and architecturally decentralized (no infrastructural central point of failure) but they are logically centralized (there is one commonly agreed state and the system behaves like a single computer).” – Vitalik Buterin

So, why is decentralization useful in the first place?

  • Fault tolerance: decentralized systems are less likely to fail accidentally because they rely on networks of separate components.
  • Attack resistance: decentralized systems are more expensive to attack and destroy or manipulate because they don’t have vulnerable central points that can be attacked at much lower cost than the surrounding system.
  • Collusion resistance : it‘s harder for members of decentralized systems to act in ways that benefit them at the expense of others. On the other hand, corporations and governments collude in ways that benefit themselves but hurt others all the time.

 

With central banks and governments, the supply and creation of money through mints and interest rates are controlled only by the banks. Users of fiat currencies are at the mercy of the central banks’ money-printing whims.

The problem in this world is to avoid concentration of power — we must have a dispersion of power .

— Milton Friedman

If you are not yet outraged by the central banking money-printing scam, it is helpful to think of it as a hidden tax when they print and destroy the wealth you have stored in those fiat currencies.

With cryptocurrency however, no individual or consortium is able to affect the supply of currency or exert significant influence over it without the approval of the majority.

Maximum Supply & Infinite Supply with pre-defined production

Many top cryptocurrencies such as Bitcoin, Litecoin, and Dash have a maximum supply, making them deflationary by nature. Any increase in the demand or adoption of the cryptocurrency will cause a corresponding increase in the price.

Most of the other major cryptocurrencies such as ethereum, monero etc., that have infinite supply have pre-defined rules for how many coins will be produced each year. Therefore they are predictable in nature. If these currencies are successful in the long-term, it’s highly unlikely that the rate of production of more currency will result in any sort of inflation.

The increasing demand, adoption, and destruction of coins in the form of lost private keys will likely offset any moderate increase in supply due to PoW/PoS mining rewards.

Conclusion

So there you have it, the 3 key characteristics that make cryptocurrencies and blockchain technology so revolutionary. Plus the bonus economic characteristic of being deflationary through limited supply.

Next time anyone asks you those pesky questions like “what’s so special about crypto?” or “what makes them any different”, you can take them to school on the 3 key characteristics: trustlessness, immutability, and decentralization.

Hold On for Dear Life

PUMP IT – A Tribute to John McAfee’s $1 Million USD Bitcoin Prediction

This piece is a tribute to John McAfee for famously tweeting that he will eat his dick on live tv if the Bitcoin price does not reach $1 million by the end of 2020.

Although McAfee’s previous Bitcoin price prediction for 2020 was $500,000, he changed his prediction based on the fact that he was using a model which predicted Bitcoin’s value to be just $5,000 at the end of 2017. It was much higher than $5,000 at the end of 2017.. in fact more than double that.

Bitcoin or Bitcoin and other Bitcoin Forks?

Since McAfee is a strong supporter of Bitcoin Cash (BCH) and he has stated that he believes BTC and BCH will ultimately fight a war for the “Bitcoin” name, some speculate his prediction includes Bitcoin and all Bitcoin forks. 

In my opinion, Bitcoin can reach $1 Million and also not retain the dominance is has today at over 40%. There is so much potential for cryptocurrencies over the next couple of years, that a roughly 100X increase in any single coin’s price is not hard to fathom.

Props to McAfee for Bolstering Crypto Confidence

In any case, whether McAfee was referring to only “Bitcoin Core” or Bitcoin and all Bitcoin forks, this prediction is a bullish one and helps bolster confidence in the cryptocurrency space.

Way to put it on the line for the pump, McAfee. Well done.

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MCAFEE BTC 1M USD
MCAFEE BTC 1M USD

Hold On for Dear Life

BTFD – Buy the Dip to Get the Gains

Buy The F***ing Dip

Similarly to “HODL” (Hold On for Dear Life), “BTFD” (Buy the Fucking Dip) is another term used in the crypto world, which encourages investors to take advantage of lower prices in a falling market, as opposed to panic selling which is the worst thing you can do when prices are down.

The truth is that timing the market in the long-run proves to be a losing strategy for over 90% of investors and traders. Hindsight is always 20/20, but the truth is that very few could have predicted what’s happened in the crypto market over the past 5 or so months.

Once Bitcoin crossed the $7,500 and $10,000 levels, even the most renowned technical analysts such as Tone Vays didn’t even know what to say about which direction the Bitcoin price would go.

Buying the dip, which means buying coins when prices are down, has been a winning strategy for Bitcoin investors since 2009. This concept isn’t new. There are quotes as old as Finance recommending to “buy when there’s blood on the streets”.

With this in mind, it’s safe to say that one of the easiest and fool-proof strategies one can use is to both hold your coins long-term and buy the dip when prices are down to accumulate more.

You can find some rather amusing tweets on Crypto Twitter just by searching the #BTFD hashtag.

Here are a couple of my personal favorites:

Don’t cry when you see those big red candlesticks.. you have to buy the dip to get the gains.

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BTFD Buy the Dip Get the Gains-01

Hold On for Dear Life

Hold On for Dear Life to your Cryptocurrency

The HODL Phenomenon

The concept behind holding on for dear life, or “hodling” is nothing new to the world of invsting, nor is it only applicable to cryptocurrency investing.
You should manage your crypto portfolio as you would any other investment portfolio. The fundamental idea behind hodling is to let the winning trades run because doing so is both the easiest and most certain way to make large returns over time.

At first glance people often assume that hodl is just a typo of ‘hold’. This is partially correct.

The term “hodl” originated during the 2013 December where a Bitcoin investor vented his frustration with a post titled “I AM Hodling”. Here, he explained that only good traders know when to sell Bitcoin and identify bear markets. He also admitted that “Hodling” was a typo.

Hodling has moved on to become a strategy for investing in cryptocurrencies and an abbreviation for “hold on for dear life”. But should you always hold on for dear life or hodl each cryptocurrency?

FUD in the Crypto World

The crypto world moves very fast. So much so, we sometimes refer to “crypto time” as a different scale of time, similar to “dog years” in which there are so many new projects popping up almost daily, price pumps and crashes, and of course media stories promoting FUD (fear, uncertainty, doubt) causing novice investors to panic or at best feel uneasy.

While there is little we can do individually about any of this, having an understanding of these factors and their regularity can pay off for the newbies. They will keep calm and HODL.

Be like Chad HODL, not the Virgin Panic Seller

Prices should continue to be wildly volatile, governments should continue to threaten to ban crypto and then rescind these threats, and new projects certainly will continue to emerge claiming they will dethrone major cryptocurrencies and blockchain projects with their superior technology.
If you truly understand this, you will be able to see through the FUD and be more like the Chad HODL.

Not all coins are worthy of Hodling

Most cryptocurrencies are currently in a price-discovery mode. As the crypto markets are so young and rapidly changing, it’s very difficult to apply standard valuation methods as with equity investments to determine the fair price and whether a coin is overvalued or undervalued.

Instead of having things like price-to-earnings (PE) ratios and discounting cash flows (DCF) as methods to value equities, cryptos are often valued by factors such as:

  • Market Capitalization
  • Max & Total Circulating supply of tokens
  • Use cases and potential for adoption
  • Github repositories and activity
  • Number of transactions
  • Transaction fees & Mining profitability
  • Performance of the blockchain
  • Social media interest (Telegram, Reddit, Twitter, etc.)
  • Google search trends

Whether you’re a hodler or a swing trader it pays to learn about some of these valuation metrics for crypto, as coins that rank well comparatively on these metrics tend to outperform and outlive coins that don’t.

Always remember to think Long-Term & Hold On for Dear Life.

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hold on for dear life crypto currency

The Church of HODL CRYPTO

Welcome to the Church of HODL CRYPTO, where holding is acknowledged for the skill that it is amidst the volatile crypto markets. We hodlers dollar cost average our cryptocurrency holdings when prices are low, which results in a level of solvency higher than that of the average investor.

It is commonly said that 80% of crypto investors buy high and sell low.

Greed/Buy, Fear/Sell

While it’s entirely understandable for someone to (unfortunately) buy close to an all-time high, selling at a lower price after buying at higher prices is flat out dumb.

Venn Diagram for Buying High and Selling Low
Venn Diagram for Buying High and Selling Low

Not selling at a loss is a principle rule for many traders, who only break this rule for serious exceptions such as a change in the fundamentals of the underlying investment.

These 80% of crypto traders who (allegedly) buy high and sell low are primary reason for the fear/greed hype cycle we see so prominent in the crypto markets.

This is why Elliot Wave theory works so well at times for technical analysts in the cryptocurrency space.

For those unfamiliar with Elliot Wave theory, it’s basically a form of technical analysis that traders use to analyze market cycles and forecast trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors.

ETHUSD Elliot Wave Analysis
ETHUSD Elliot Wave Analysis

This is precisely where the concept of “Hold on for dear life” comes in. Yes, it’s true that the term “HODL” originated from a typographical error committed by an early bitcoin adopter who was under the influence at the time; however HODL has become an iconic mantra for investors in the cryptocurrency community to encourage others to hold their coins and not panic sell under times of extreme volatility.

At the time of writing this March 21st 2018, the Bitcoin price has recovered a solid 22% from lows set just 3 days ago, amidst a 3-month bear trend.

BTC USD 3 months

We are still over 50% below the all-time-highs set in December, however hodlers who may feel the sting of short-term price decreases also had an amazing opportunity to add to their Bitcoin holdings just 3 days ago a 65% discount from December highs.

The strategy I prefer to use, however un-scientific is may be, is to wait for those panic levels to add to my cryptocurrency holdings. In essence you are using those same emotions to your advantage to dollar cost average into a larger position at multi-month lows.

As the crypto-clueless Warren Buffet has so famously been quoted, “Be fearful when others are greedy and greedy when others are fearful”.

warren buffet washed up

This is excellent advice when it comes to crypto investing. If you follow this advice, you will be the one buying up all the cheap coins when panickers sell their precious coins at huge discounts.

Follow the gospel of the church of hodl crypto and dollar cost average your way to the pearly gates.

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Church of HODL CRYPTO
Church of HODL CRYPTO

Hold on for dear life.

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