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Topic	Cryptocurrency General Thread
TheMikh 04/20/21 5:36:27 PM #27:	MarbyIsBack posted... Sooo... can someone explain to me exactly how this stuff works? Been thinking about getting into it, but I don't know the first thing about it. what in particular would you like to know? in a nutshell, bitcoin introduced technology in 2008-2009 for issuance and peer-to-peer payments through use of a distributed and tamper-proof ledger. ethereum built on this idea starting in 2015ish, also facilitating applications with distributed computation/verification that are developed and executed on top of this distributed ledger technology. it also allows for issuance of non-native tokens in the network to be used by these applications such as erc20s and nfts, leading to the ico bubble of 2017 and the nft bubble of 2021. an entire ecosystem of applications developed within the ethereum network (esp. after the ico bubble popped). this includes decentralized finance, which is basically crowdfunded financial instruments on the blockchain, as well as prediction markets, oracle networks in development, data/reporting services, etc. this activity drove the ethereum price so high it became expensive to use, resulting in a large number of competitors, as well as a patchwork of applications aiming to reduce costs through the likes off-chain settlement using the main blockchain for finality. meanwhile, technology is in development to verifiably retrieve data from off-chain for use on-chain, effectively marking the beginning of blockchain attempting to eat parts of the mainstream internet, and whatever other long-term applications this data might have. all within a trustless, permissionless, transparent / p2p-verified, censorship-resistant context. What should I look for when buying cryptocurrency? i personally go for what i believe has strong fundamentals for long-term growth, time-tested technology and/or a strong team of developers and backers, ideally has first-mover advantage, strong network effects, a deep moat, and has potential to help the entire ecosystem grow. it's especially important to do your own research during bull cycles, since everyone and their grandmother is trying to cash in on cyclical booms with projects and schemes that are often lacking in functionality, fundamentals, or are otherwise redundant, never mind a sharp increase in scam activities. What is the lowest amount I could put into it where it would be worth it? when in doubt, dollar cost average on a monthly, biweekly, or weekly basis a dollar amount that isn't too taxing for your financial situation. best time to accumulate is during bear markets, but you can still get away with it for established projects during bear markets, during which more aggressive moves on early projects with strong fundamentals may not be a bad idea (but is necessarily far more risky in the long term). --- https://imgur.com/A0TAfek <cite>TheMikh posted [p:953046501] in Cryptocurr... [t:79415919]...</cite> <quote>MarbyIsBack posted... </cite> <quote>Sooo... can someone explain to me exactly how this stuff works? Been thinking about getting into it, but I don't know the first thing about it.</quote>what in particular would you like to know? in a nutshell, bitcoin introduced technology in 2008-2009 for issuance and peer-to-peer payments through use of a distributed and tamper-proof ledger. ethereum built on this idea starting in 2015ish, also facilitating applications with distributed computation/verification that are developed and executed on top of this distributed ledger technology. it also allows for issuance of non-native tokens in the network to be used by these applications such as erc20s and nfts, leading to the ico bubble of 2017 and the nft bubble of 2021. an entire ecosystem of applications developed within the ethereum network (esp. after the ico bubble popped). this includes decentralized finance, which is basically crowdfunded financial instruments on the blockchain, as well as prediction markets, oracle networks in development, data/reporting services, etc. this activity drove the ethereum price so high it became expensive to use, resulting in a large number of competitors, as well as a patchwork of applications aiming to reduce costs through the likes off-chain settlement using the main blockchain for finality. meanwhile, technology is in development to verifiably retrieve data from off-chain for use on-chain, effectively marking the beginning of blockchain attempting to eat parts of the mainstream internet, and whatever other long-term applications this data might have. all within a trustless, permissionless, transparent / p2p-verified, censorship-resistant context. <quote>What should I look for when buying cryptocurrency?</quote>i personally go for what i believe has strong fundamentals for long-term growth, time-tested technology and/or a strong team of developers and backers, ideally has first-mover advantage, strong network effects, a deep moat, and has potential to help the entire ecosystem grow. it's especially important to do your own research during bull cycles, since everyone and their grandmother is trying to cash in on cyclical booms with projects and schemes that are often lacking in functionality, fundamentals, or are otherwise redundant, never mind a sharp increase in scam activities. <quote>What is the lowest amount I could put into it where it would be worth it?</quote>when in doubt, dollar cost average on a monthly, biweekly, or weekly basis a dollar amount that isn't too taxing for your financial situation. best time to accumulate is during bear markets, but you can still get away with it for established projects during bear markets, during which more aggressive moves on early projects with strong fundamentals may not be a bad idea (but is necessarily far more risky in the long term). --- https://imgur.com/A0TAfek</quote> ... 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