Crypto (for short) is internet money. To understand crypto, you need to understand money.
So what makes money money?
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Money must have all 3 of the below:
1. Enough people must have it. 2. Merchants must accept it as a form of payment. 3. Society must trust that it’s valuable and that it will remain valuable in the future.
Our current money was designed thousands of years before the internet (bartering to fiat).
Money designed thousand of years ago CAN NOT and DOES NOT cater for the internet. It is that simple!!!
We needed a new currency that can keep up with the internet.
The world’s current money systems have some problems:
1 Credit cards & wire transfers are outdated
2 Middlemen like banks take a cut in the process...expensive & slow
3 Financial inequality is growing
4 3 billion unbanked or underbanked people can’t access financial services.
Along came Satoshi Nakamoto with the Bitcoin white paper to solve this problem.
Crypto is simply digital money.
Money that is stored in WALLETS with KEYS and that operates on a BLOCKCHAIN
Imma break that down
Wallets
Like the old skool version…Your wallet holds your money. But generally, they’re different from traditional wallets and come in different formats and levels of security.
You can’t get involved in the cryptocurrency market without a crypto wallet.
Some Wallets I use, but there are MANY more:
Trust Wallet
Atomic Wallet
eToroMoney
Wallet Keys
This wallet is not in your pocket, but on the internet, we need to protect it. Your wallet key is your life. You cannot share it with anybody. Most wallets will give you 10 random words. You need to type those words in the specific order. They are hard to crack.
Blockchain
This is where many people lose interest coz it is hard to wrap your head around. I tell people think of the blockchain as the train track and the coin is the train. The train cannot move without the tracks. That is the blockchain. It helps coins move around the globe.
Blockchain
The blockchain is what makes crypto super unique. The blockchain is not in one place. It is shares around the world on millions of computers and those computers are often called nodes or miners. They validate all transactions independently for a fee.
Blockchain
The blockchain cannot be corrupted. You will need thousands of people to collude, unlike in a bank where you need just 2 and your money is gone. her you will need thousand of people from different corners of the planet to collude. It is impossible, trust me
Why so many? How do I choose?
Bitcoin is the OG of crypto. Satoshi made just 21 million Bitcoin & vanished. There can never be more than 21 million original Bitcoins EVER! There are 7 billion people on the planet & 21 million BTC. You do the math if everyone wants one in 30yrs?
Bitcoin
BTC runs on the Bitcoin Blockchain. No other coins can run on the BTC blockchain. Satoshi vanished and now this is how it is forever.
Some BTC are lost, some people dies with keys, lost their hard drives or keys. We can never get those back😭
ALTCOINS
Every coin that is NOT Bitcoin is an altcoin. That is ETH, LINK, SUSHI, UNI, ADA etc etc etc…all of them are ALTS.
Ethereum
All ALTS run on the Ethereum blockchain. Ethereum is the name of the blockchain. Ether is the name of the coin
If u want BTC to run on the Ethereum blockchain, u need to “wrap” it in special coding to make compatible. Otherwise, you are screwed. We call it Wrapped BTC
Imposter syndrome, also called perceived fraudulence, involves feelings of self-doubt and personal incompetence that persist despite your education, experience, and accomplishments.
I had this badly for years
What my shrink made me do👇
many of you know I am a chartered accountant and that those exams are dam hard. I passed both exams on the first attempt. Instead of celebrating like other kids, I thoroughly believed the markers made a mistake TWICE
Yes, it sounds ridiculous now, but I believed it with my heart
I took these rubbish thoughts into my entire career that followed. Whenever I went for an interview, I got the job. I was never rejected. AGAIN, I thought I just had a smooth mouth. LOL.
I got promotion after promotion and still I waited for them to catch me out😭
Everyone has a story to tell. Your story is unique. Writing an e-book takes time and preparation, but it is very rewarding. Surviving a traumatic experience, overcoming grief, competing at the Olympics or completed your first marathon...write
You can type in any company and it will display the financials.
Let's use Aveng of course
Red is bad. Black is good.
An Income Statement shows you if a company made profits or losses.
It contains all the income and all the expenses of the company
You start at the top with Revenue. This is the sales the company made. Think of it as the heart of any business. We all start a business to make sales.
You want this number to increase year on year, right???
Let's not worry about inflation now. This number must grow annually
Something that I really struggled understanding for the longest time. Not sure how you guys feel?
An ETF is usually a passively managed index fund that trades on a stock exchange. I always tell people it is a basket of shares.
Lets say you buy the Satrix JSE Top 40. Satrix buys the actual shares of the Top 40 JSE companies and you own a piece of each.
ETF's are passive because they don't go buy and sell shares daily in there. If a company ie drops out of the JSE top 40, that's the only time Satrix will go and change the basket.