The cryptocurrency multiverse is notorious for bad actors and clever scams.
Be particularly wary of investing in any project with an anonymous team.
Be suspicious of attractive marketing of an idea that is so far associated with no working product.
Follow the developers with the best track records. It can be argued that part of the value of any network will be associated with the value of the skills and resources employed in its construction. The best developers tend to be attracted and retained not just by money but also by the quality of people with whom they they will be working and the attractiveness of the project mission and the vision that they will be helping to realise.
You are less likely to become a victim of fraud, theft or your own carelessness if you religiously follow our "Ten Commandments".
Mainstream media outlets are influenced by financial institutions, governments and other political factions that wish to maintain the status quo and may feel threatened by the emergence of decentralized finance. Few reporters have knowledge of the multiverse.
The history of blockchain technology is littered with cases of fraud and misrepresentation. Any opportunity that seems too good to be true usually is. A whitepaper may propose a brilliant idea but it isn't wise to invest in a project that has not released working product or has no credible team or investors to sustain it.
Many cryptocurrency influencers do not have their followers' best interests at heart. They'll promote a token that they have already bought so that the price increases before they dump it. Technical Analysis can help you understand the past but it cannot predict the future.
Most blockchain code is open source so some cleverly marketed projects are little more than crude profit generating copies of work previously carried out by real innovators who focussed on blockchain development and testing rather than token sales.
A disaster area - the whole fabric of the space time continuum is not merely curved, it is in fact bent.
So it is wise to try to understand tax laws in your jurisdiction and endeavour to legally avoid them but it is unwise to illegally evade them.
Yes Ethereum is an enabler of decentralised finance and yield farming can be profitable in the short term, but do some research and then seriously ask yourself if the project in which you are about to invest is likely to be around in 5 years time. Or is it a "pump and dump"?
The Pan Galactic Gargle Blaster is an alcoholic beverage invented by ex-President of the Galaxy Zaphod Beeblebrox. Its effects are similar to "having your brains smashed out by a slice of lemon wrapped round a large gold brick." Beeblebrox advises, "never drink more than two Pan Galactic Gargle Blasters unless you are a thirty ton mega elephant with bronchial pneumonia."
No. They prioritise the security of the own families and their network of friends. This is not evil. It is natural and normal human behaviour.
At last, cryptocurrency allows you to take control of your own money and irrespective of much your government and central bank devalues your national fiat currency or extends the size and reach of their parasitic bureaucracy your personal savings in Bitcoin will increase in value because of its fixed limited supply and increasing demand for it.
Governments and their regulators seem content that financial institutions who take excessive risks and then lose can get bailed out. Do you remember the banks in 2008?
A hedge fund is an investment fund that trades in relatively liquid assets and is able to make extensive use of more complex trading, portfolio-construction and risk management techniques to improve performance, such as short selling, leverage, and derivatives. Regulations tend to prohibit retail investors (non-accredited) from doing this, even although they wouldn't get bailed out if they lost. Is it fair that the accredited rich are allowed to play this game while ordinary people are not? Form your own opinion after reading about the experiences of the Reddit group r/wallstreetbets, how their chosen trading platform, Robinhood, responded and how a $13 billion hedge fund, Melvin Capital who had bet against GameStop (a company that employs 15,000) capitulated and closed out its position. (GameStop's new crowd of bulls got their first taste of blood on Monday January 25 2021 when The Wall Street Journal reported that Melvin Capital would receive a $2.75 billion investment from Citadel and Point72 Asset Management, expected to buoy the short-seller after its loss of nearly 30% through Friday).
Why are our institutions failing? Are things really worse today than yesterday? Do we have other choices? In this talk, Andreas Antonopoulos discusses the pandemic, the failure of institutions, the beginning of humanistic globalization, and our new governance model: a system of rules without rulers. Click the picture to view Andreas's video, "Unprecedented: Rules without Rulers [a new governance model humanistic globalization]"
This is an abstract from a controversial Playbeing article, edited by Zarniwoop, that contemplates the contrast between resistance and true resilience. The difference is more than just semantics. Resistance is all about hardwiring pre-programmed responses to known threats, whereas resilience is something more subtle altogether.
Resistance assumes that you can deconstruct a system into its component parts, see how they fit together and so understand how it all works. This works well in simple systems, but global financial markets are now so complex and interconnected that this just will not work; if anything, it actually makes the probability of some non-linear calamity more likely. Despite this, regulators around the world obsess on resistance by setting hard limits on some activities, banning others altogether and trying to impose blanket taxes.
Resilience, on the other hand, takes a different approach. Instead of focusing on the near field, it emphasises context and adaptivity. Making markets safer is the right thing to do, but it should be everyone’s responsibility not imposed top-down by a few well-intentioned regulatory bodies. The more rules they impose, the more everyone else abrogates their own responsibility and simply plays catch-up with the new regulations. Maybe it is time to think about letting markets manage themselves again, re-energise the concept of SROs and trust that market participants are best placed to learn from the mistakes of the past. This will not go down well with the politicians, but maybe it is the only path to a truly resilient global financial system. The alternative is just to keep on ratcheting up complexity with more and more rules, which will either strangle the industry to death or lead to the next unforeseen disaster.
So maybe, as far as financial markets go, resistance really is useless, but resilience, well that’s another story. Perhaps we should consider it ironic that the Vogons, who are our galactic civil servants and the most bureaucratic species in the galaxy, are famous for saying, “Resistance is useless”.
To grab the chance of a more promising future one needs to navigate and manage some of the risks described above.
Emerging blockchain technologies are enabling, through a combination of the Decentralised Autonomous Organisation (DAO) and Decentralised Finance (DeFi), exciting opportunities for ordinary people to take back control of their own finances and investments by making some of the existing inefficient financial establishment redundant.
While leverage can increase a trader's trading power, leverage trading comes with its inherent risks. Trading using leverage also amplifies losses at the same rate it amplifies gains. For example, a trader opening a $1,000 Bitcoin long with 10x leverage will fund the position at $100 and borrow $900.
Some centralized cryptocurrency exchanges are unregulated and have their own trading desks that can see how their customers are betting and can manipulate markets to maximise their own profit from liquidating their customers' positions.
"Hopeum" can be as addictive and dangerous as opium
You may think that day-trading in cryptocurrencies can be fun and exciting but it is dangerously similar to gambling in a casino that for many people is fun and exciting too. The house usually wins and gambling can become an addiction that will ruin your life.
Marvin's lullaby goes like this:
Now the world has gone to bed
Darkness won't engulf my head
I can see by infra-red
How I hate the night
Now I lay me down to sleep
Try to count electric sheep
Sweet dream wishes you can keep
How I hate the night.
The S.E.P. is a sort of cloaking device that can run almost indefinitely on an AA battery, and is able to do so because it utilises a person's natural tendency to ignore things they don't easily accept, like, for example, aliens at a cricket match. "Somebody else's problem" is a phrase used to describe an issue which is dismissed by a person on the grounds that they consider somebody else to be responsible for it. The term is also used to refer to a factor that is "out of scope" in a particular context.
In the context of cryptocurrency projects, it is the phenomenon that causes people to ignore issues that they know about but think of as either not something they can do anything about, or not personally relevant to them right now. This can result in something that's very important to a group of people being ignored by every individual member of that group.
For years, the fabulously beautiful planet of Bethselamin increased its booming tourist industry without any worries at all. Alas, as is often the case, this was an act of utter stupidity, as it led to a colossal cumulative erosion problem. Of course, what else could one expect with ten billion tourists per annum? Thus today the net balance between the amount you eat and the amount you excrete while on the planet is surgically removed from your body weight when you leave; so every time you go to the lavatory there, it is vitally important to get a receipt.
Eccentrica Gallumbits is the far-famed triple-breasted whore of Eroticon Six. Some people say her erogenous zones start some four miles from her actual body. Ford Prefect disagrees, saying five. It is possible that the Big Bang was actually one of her orgasms. She wrote The Big Bang Theory - A Personal View by Eccentrica Gallumbits and It's Just One Boob After Another. It was reported that Zaphod Beeblebrox, whom she described as "the best bang since the Big One," had delivered a presidential address from her bedroom on at least one occasion. She offers Bethselamin Lessons, for which Marvin can book you an appointment if you click the CONTACT button below. It is also rumoured that Zaphod grew his third arm for her.