Learn How to Master Crypto
I began my conversation with Andreas talking about his life story, why he decided to embark on a nomadic lifestyle, and how he got into cryptocurrency in the first place.
Andreas Antonopoulos is the go to guy when it comes to cryptocurrency. Learning how to properly enter the world of cryptocurrency is key in developing society. Crypto is a complicated phenomenon and I wanted to do a brief “lesson” on some of the common terms and phrases used in dealing with cryptocurrency that I have learned from Andreas.
Common Crypto Terms
Blockchain – a distributed, decentralized, public ledger. It’s the record keeping technology behind bitcoin. Blockchain literally refers to digital information (the block) stored in public databases (the chain).
Bitcoin – the original cryptocurrency which has been around since January 3rd, 2009.
Altcoins – anything other than bitcoin. These other “currencies” started popping up around 2011 and were; for the most part, clones of bitcoin. 2014 saw another round of altcoin growth which led to the launch of etherium
Etherium – an open source, public, blockchain based distributed computing platform and operation system featuring smart contract functionality. It made it simple to put building blocks together to create all different features including ICOs.
ICOs – stands for Initial Coin Offering. These are essentially crowd funding schemes. A similar thought to an IPO (initial public offering) except that it doesn’t have any regulation involved, or very little regulation.
Regulation and Crypto
Andreas comments that regulation is not exactly what keeps investors protected. Regulation really allows investors to outsource the vetting the research that they should be doing themselves. It creates a bottleneck so that very few companies can actually do this kind of crowdfunding. This leaves a massive gap in the market where many great startups never get to that stage because they don’t have a way to get funding.
Then at the same time, many giant scams and pyramid schemes are listed on the stock market even after being vetted by regulators.
We need to think differently about what protects investors, and what really does this is education. Unfortunately one of the main ways investors get educated is through trial and error: getting burned a bit by losing some money in poorly thought or risky investments. This allows investors to develop better skepticism and better analytical skills.
Although right now about 99% of ICOs are scams, it is not inherent that that is the only future for ICOs. In fact, Andreas’ prediction is that in the long run, the opportunity to take startups and give them to international investors, to bring investors from all around the world to put money into startups, to cut out the middleman, and to accelerate possibilities will allow for more education for investors all around the world.
Right now there is no universal jurisdiction for these scam ICOs, so even though prosecutors are working to bring charges against all of these scams, it’s an uphill battle. It takes years to put a case together against and ICO, and everyday 10 new ICOs are created.
A Rocky Career
Shannon’s career has fluctuated greatly from the time he started boxing. In his early days, he was the undefeated boxer who everyone was watching. He won 25 fights in a row and was on a roll. He was highlighted on HBO as the next big superstar. However he was knocked out in the big televised fight against Darroll Wilson and after the fight, he split with his trainer.
He was on his own for the next few years and came back in 2006 to win another heavyweight championship. He went back underground, coming back in 2010 with a devastating loss against Vitali Klitschko, which landed him in the hospital with severe injuries.
Now he is back again. Like a phoenix from the ashes, Shannon always comes back for more.
No matter how many times he has been knocked down, Shannon gets back up. He is such an inspiration to me and I hope to everyone else reading this.
Use Shannon as your guide today to put yourself back in the ring, whatever that may mean to you. Let’s Go Champ!