The True value Proposition of Blockchain and Cryptocurrencies: A fourth industrial revolution, A new Accounting standard and a new form of truth for transacting value on a global scale

[Grindalythe]

NFT’s are simply tokens which rather than having one generic format to represent fungibility or voting power/utility on a protocol have unique attributes in and of themselves. You may all be thinking shitty jpegs but they have far more to them than that. NFT’s essentially allow us to store unique documents on chain such as deeds to property, legal documents, identification like national insurance numbers, health records etc. (these can be made private and hidden and attached to a private key so individuals would have controls over this as well has having the master key preventing duplication of ID and fraud see DECO and TOWNCRIER in my chainlink DD)

So to recap:

1. Truth over trust could displace or disrupt many large centralised institutions and cause a complete evolution of how we value things (would the brand guarantee hold the same weight in years to come?)
2. Blockchain and private permissionless keys give people access and control of their finances that have never existed before in history.
3. Blockchain can offer reduced counter party risk and reduced costs to users to the point where competitors in the space will be forced on chain or be squeezed out.
4. Proof of stake and stakeholder capitalism means economic actors have an enforced economic incentive to keep promises and not break agreements or misreport.
5. Interoperable fraud proof documentation records.

Hopefully I have constructed a convincing enough proposition to at least make you consider the possibility that this will be the primary driver of growth and be one of the biggest drivers of change in how humanity exchanges value, data and agreements and as a result represents the single largest space for opportunities for investment growth our generation will ever see.

A few dangers and considerations for new crypto investors

Pump and Dumps: This is the most common in crypto. There are over 10,000 coins listed on coingecko and believe it or not not all coins get listed. I would say there’s comfortably less than 1000 that do anything remotely useful and I’m probably stretching it at that. So what are all these coins then? Well Anyone can start their own coin on ethereum and call it anything they want, alter the supply, the permission on what they can do with the coins, how they are distributed etc. These coins with no inbuilt utility are referred to as shitcoins. Some try to build in some limited and simple utility, make fancy websites, twitter feeds, white papers etc to try and look more legit if they are going for a bigger PnD. Other strategies include sending coins to random wallets to trick data on how many people hold the token and transaction volume. I have PENIS and HOT LOVE coins in one of my wallets and I can assure you I did not buy them myself. But this is one of the metrics poochoobers use to “value” a token. That’s the next thing influencers on twitter and youtube are almost always paid shills. I just ignore them for the most part. There’s always exceptions but this is the vast majority. So how do they make it pay? Easy start a liquidity pair on uniswap or any exchange and when they add the ethereum and their shitcoin in the pair they set the opening price. As they are the only pool provider they can manipulate the price. They start with super low liquidity so hardly any eth or coins in the pool. They then Buy the coins in the pool (essentially this adds eth) and as the price is simply the shitcoin to eth ratio the price rockets quickly. If the pool starts with 100 coins and 0.00001 eth then the price is 0.0000001 eth per coin. If they add 0.00001 eth to the pool they just doubled the price for basically no cost. This is how they make the chart look like it is going to the moon but there’s no buyers there. Now they have all the tokens in a wallet where they created the token waiting to dump in the pool so when other people start buying they start selling into the buy wave thats where you get these natural looking retracements on low buy in volume. Then when the buy pressure look exhausted they dump all the coins in their wallet (or a lot anyway) and in effect steal all the eth in the pool causing the instant crash. This is unbelievably common. So you see if you buy a coin and it goes 10x there’s so little eth in the pool you will hardly pull out any money when you sell because the liquidity pool is so small. If you are trading something off a centralised exchange you can look at the depth of liquidity one the dex you are using for example this Uniswap Info. Systemic risk: Crypto in general is still in the test phase essentially. Until it has an ingrained and substantial role to play in value transactions and the real world economy most of the value is coming from speculative buyers which are weak hands compared to purchasers requiring it for utility …