Cryptocurrency 101
Let me start off by telling you a story about when I was 23 years old. At the time I was a newly successful entrepreneur, making (to me at the time) a lot of money. I remember I had a dispute with my bank, I was angry that a teller had lost me around a thousand dollars by telling me a check that was written to my business was legit and had cleared. It didn't clear because it was fraudulent, and the money was reversed, and a loss of my product. I called the bank and argued with a bunch of low level customer service reps until I got to some higher up bank manager or executive. I was young and cocky, telling the guy off about the bank losing my money. I remember the bank manager on the phone stopped me and made it very clear to me, that the money in my bank account was not my money. It was the banks money. And they, or he, could at any moment they choose, freeze my account indefinitely and I would never be able to access that money again.
That conversation taught me a very important lesson. That the money you deposit into a bank account, is no longer your money. It's the bank's money, and they merely allow you to access it for the time being. Until they or the government or some other central authority decide to no longer allow you to access that money. This is a fact. You can look at the fine print in your bank account agreement to confirm.
I thought to myself at the time, "This is bullshit." I knew we needed a solution to this, where no bank or central authority can control the wealth that we generate and earn for ourselves. Nobody can come along and take your hard earned money. I thought that considering this is the internet age and the digital age, we should have a solution by now.
Fast forward a few years, and a friend of mine tells me about this thing called the Silk Road. An online marketplace where anyone could trade, buy or sell goods - mainly drugs like cannabis - and have it delivered to their doorstep. I thought at first this would no way work because there's no way to easily send and receive money without the government stepping in and stopping it - credit card merchants, paypal, e-gold, etc. Then I heard the magic word that made it all possible: Bitcoin.
Bitcoin (at the time) was sound money. There was no central authority that had the power to decide whether or not you were worthy of keeping your hard earned money. No government could step in and stop you from sending or receiving money with someone else. You didn't need permission from the government to spend your money or live your life the way you wanted. In essence, through Bitcoin, you became your own bank. You took power away from central authority and brought it back the individual - yourself.
Bitcoin was virtually free to use, and instant. Nobody knew about it, all the talking heads dismissed it as a scam. They had no idea what is was. But some people, the same people drawn to the power of authority, backed by violence and aggression, were instantly and instinctively afraid of it. Because they knew on some level deep down that this new technology called Bitcoin, backed by something called the Blockchain, would sooner or later bring an end to their power backed by violence and aggression.
So they did what they did best - lied, cheated and stole, used censorship and propaganda. They stole name of Bitcoin, and turned it into another fractional reserve tool for the corporations and power hungry. Another tool to be used by the sociopaths to control the population of peaceful, hard working people. People who earned their money by giving value to others, rather than take it through theft and coercion.
They stole the name of Bitcoin, but they failed to stop the technology. In 2017, the original Bitcoin technology became what is known today as Bitcoin Cash BCH. True, sound money that enables you to send money to anyone, anywhere in the world, instantly and for free. No need for permission from the government to do business with anyone. No need to sign up and fill out applications or deemed worthy by your credit rating or social credit score.
It's entirely trust-less, no need to trust anyone. It's backed by unbreakable cryptography and mathematics. It cannot be printed out of thin air like fiat cash and have the value stolen through hidden inflation. It cannot be controlled by any one central authority. It is decentralized and distributed. It takes power away from central authority, and gives it back to the individual, the people.
Okay, I got way too far off topic.
Here's the information that actually matters:
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How to Buy Cryptocurrency and Become Your Own Bank
The cheapest and easiest way to start owning crypto is to sign up an account at a regulated exchange. (Side note: nobody can own true cryptocurrency, you can merely control the private keys). For US and UK citizens, the easiest exchanges to get started with are Coinbase and Gemini. Takes a few minutes to sign up, then you connect your bank account, and you can buy your first cryptocurrency right away. There are a lot of regulated exchanges around the world, you'll have to find an exchange in your country that allows you to sign up and buy crypto. Another way which is more expensive is to use a credit card. And the most expensive way is to buy private party from somewhere like local.bitcoin.com
It's important to remember this popular phrase in crypto: Not your keys, not your coins. That means if you truly wish to control cryptocurrency, you need to be the sole holder of the private keys. Every true cryptocurrency consists of a public key and private key. The public key is an address where the cryptocurrency is stored. The corresponding private key is what enables that cryptocurrency to be spent.
In a traditional bank account, the bank has a private ledger where they keep track of which account has what amount of money in it. It's a private ledger that is controlled and seen only by the bank, you have to take the bank's word and trust them. In cryptocurrency like Bitcoin Cash, there is a public ledger called the Blockchain which keeps track of all inputs and outputs. The Blockchain is public, meaning anyone can look and verify which addresses contain what amount of crypto. Without going into detail, this public ledger makes doing shady things like counterfeiting and stealing impossible. And the only way to shut it down, is to shut down the internet over the entire world (which isn't going to happen, ever, unless there's a meteor that destroys all life on the planet).
Anyway, you don't want to leave your crypto in the control of an exchange, or somewhere stupid like PayPal or Robinhood. Because if you don't have sole access to the private keys of that cryptocurrency, then it's not actually your cryptocurrency. It's the exchange's or the bank's cryptocurrency, and they merely allow you to access it for the time being. Until they, or some other central authority, decide they don't want you to have access to it anymore. There's also the threat of an exchange being hacked and your cryptocurrency being stolen. Which has happened multiple times throughout crypto's short history.
Once you have exchanged your hard earned cash for cryptocurrency, transfer it immediately to a private wallet. I either suggest downloading a popular wallet on your smartphone, or buying a hardware wallet device. You can also print or write your private keys on paper, but that's not convenient if you decide to spend your crypto in exchange for a service or product.
This by the way, is one of the main reasons Bitcoin and cryptocurrency became what they are today: A Peer-to-Peer Electronic Cash. For spending. Most people involved in crypto today are only involved because "number go up", or to Get Rich Quick. They have no idea or care about what Bitcoin was originally created for, and no idea or care for individual freedom (at least until they experience the wrong side of government oppression).
Bitcoin enables you to send money directly to another person or business without going through a financial institution. It is a true Peer-to-Peer electronic cash. Not a Peer-to-3rdPartyFinancialInstitution-to-Peer centralized cash like government fiat - the US dollar or Great British Pound.
Okay, so once you have cryptocurrency in your own private wallet, you can go ahead and spend it (or save it). But beware: sending Bitcoin Core BTC will cost you somewhere between $5 and $50 to send any amount, and it will take a long time. Sending Ethereum ETH will cost you around $5, but at least it will be quick. My choice is Bitcoin Cash BCH, the original Bitcoin, as outlined in the whitepaper written by Bitcoin's creator Satoshi Nakamoto. As it's virtually free to use and instantaneous. You can send any amount to anyone, anywhere in the world, for less than a penny, instantly.
To send $1 of Bitcoin Core BTC will cost you between $5 and $50 and will take a long time to get where you are sending it. To send $1 of Bitcoin Cash BCH will cost you less than a penny and it will arrive instantly.
By having a private wallet that holds your cryptocurrency, you essentially become your own bank. It's like having a secret Swiss bank account in your pocket, or if you memorize your private seed words, having a secret Swiss bank account in your head. You and only you are the sole controller of that money. No government can tell you where you can and can't spend it. Nobody can freeze your crypto indefinitely. And nobody can counterfeit it by printing it out of thin air and stealing its value.
I recommend using a wallet on your phone rather than your desktop or laptop computer, simply because the security is stronger. If someone hacks your computer, they have access to everything on your computer. On an android or iphone smartphone, all apps run in a secure sandbox. If someone hacks an app on your phone, they cannot access your other apps like your crypto wallet. I'm sometimes attacked by suggesting your smartphone is more secure than your computer, but those attacks are usually founded on ignorance. Your smartphone is a safer place to store your crypto than your computer. Just keep your smartphone physically locked with password encryption. A password (not a pin) and biometric security is enough. If you're really paranoid, you can delete your wallet from your phone if you don't need to access it and just restore your wallet from seed words later. The important thing about your wallet are your seed words. You'll need to write those down and keep them secure somewhere, or stored in an encrypted container or password manager. And the most secure place to store your crypto is a hardware wallet.
For security, never use your phone number or SMS text message for two factor authentication in any of your online accounts. Phone numbers and SMS's have been known to be hacked easily to gain access to email accounts and online accounts to steal cryptocurrency. Use a 2FA app like Authy or Aegis Authenticator.
There's a whole lot more on security that I can go over, but I'm just not willing to go into detail right now.
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I think I've covered the most important things so far. Here I'll try to recap:
-Buy crypto through a regulated exchange like Coinbase or Gemini or the Crypto.com app. Those are the easiest, fastest and cheapest ways. You can also buy with a credit card at some places, but it will cost more money, you'll get a bad exchange rate and fees. Do some research for exchanges available in your jurisdiction/country to purchase crypto easily. Do not buy from PayPal or Robinhood as you will not be able to move your crypto off their platform and into your own wallet.
-Buy private party through a decentralized service like local.bitcoin.com, though you'll pay a huge premium for the privacy of not going through a government regulated KYC/AML exchange. The benefits to private party purchasing are your crypto is now totally private, can't be traced by government tax agencies, etc. I do not condone tax evasion as that can land you multiple years in a government cage. We don't make the rules, we can only play by them. The sociopaths drawn to power and control over others make those rules. But we can learn the rules and use them to our advantage.
-Move your cryptocurrency immediately to a private wallet that only you have access to the private keys. I use Coinomi, Bitcoin.com wallet and the Ledger Hardware Wallet.
-Make security of your cryptocurrency a top priority. Save your seed words, lock your phone with a password or passphrase (biometric unlock is fine). I usually only keep spending amounts on my phone wallets. Everything else I keep locked in my Ledger hardware wallet. If you decide to get involved in Ethereum smart contracts, keep it stored on a hardware wallet. Hardware wallets are the safest places to keep your crypto stored and easily accessed. Keep your seed words stored somewhere safe and encrypted. Some people advise writing on paper and hiding somewhere (paper can be lost or burned in a fire). Use a password manager like Bitwarden, LastPass or 1Password. Use google authenticator 2FA. Minimize your use of SMS text messaging 2FA. Keep an extra email address dedicated to your crypto accounts that isn't connected to SMS 2FA.
-Spend and Replace. Whatever crypto you send or spend, replace it by purchasing more crypto right away. I won't go into detail, but at this moment in history, it's important to keep only as much cash on hand as you need for living expenses. Your government fiat cash is losing value and has a high probability of being worthless in the next few years. I currently keep mine stored away in Gold, Silver and Crypto. More in stocks and real estate, but what's really important right now is Gold, Silver and Crypto. I'll leave some videos to start you off on your own financial education:
Mike Maloney's Hidden Secrets of Money Series
The most important episodes are 4, 6 and 7. Re-watch episodes 4, 6 and 7 a couple times at least.
Ray Dalio's How The Economic Machine Works
How Government Solved the Health Care Crisis
Other good resources are armstrongeconomics.com, George Gammon and Lynette Zang on youtube.
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-Figure out which cryptocurrencies actually have a use-value. Bitcoin Core BTC is expensive to use and takes a long time to send securely. Its proponents argue it isn't meant to be spent, instead it's a store of value. But if you aren't an economic illiterate, you would understand that you cannot have a store of value without an underlying use. Like Bitcoin Cash BCH, which can be used as Cash and is a Store of Value. Bitcoin Cash is the original Bitcoin. It's name was stolen by power hungry sociopaths through the use of censorship, propaganda, lies and manipulation.
-Cryptocurrency was created to take power away from central authority and give it back to the individual. Like you and me. Bitcoin and the Blockchain are one of the first technologies in human history to ensure that reality, along with the Internet. As things are today, we are living in a world where a central authority dictates to you what you can and cannot do with your life. That authority is backed by violence and aggression. The future of humanity is headed towards a reality of voluntary consent, backed by contractual obligation --- rather than the dictation of power hungry sociopaths, backed by the threat and use of violence and imprisonment the way it is today. Bitcoin and Blockchain technology are the first steps that ensure a future of humanity that is based on voluntary consent - peace and harmony through non-aggression and non-intervention. Where no individual or group of individuals like the government can have non-voluntary authority and power over others. No one person or group of people should be able to use violence against others to get what they want (including the government). Like it or not, this is where humanity is headed, and there's no stopping it. No amount of violence, aggression, coercion or intervention can stop it. It can be delayed, but not stopped. "An idea whose time has come cannot be stopped by any army or any government." "Power over others is weakness disguised as strength."
-You don't need permission from anybody to live your live. And government is not there to help you or solve your problems. Take control of your own life and become self sufficient. Be your own bank and control your own piece of cryptocurrency. And keep some gold and silver coins while you're at it, just in case of a pending and unavoidable economic collapse brought on by socialist authoritarian insanity. Gold and silver will never be worthless as long as human civilization is a thing. You have very little to lose, with a potential huge upside by owning controlling gold and silver (and probably crypto).
-Never keep all your eggs in one basket. Keep your wealth diversified. I recommend owning stocks via the S&P 500 (top 500 companies in America) so you don't have to gamble and bet in the stock market. When you invest in the S&P 500, you are investing in American capitalism. Also own real estate, the easiest way is through REIT ETF's, real estate investment trusts. Own Gold and Silver, only keep as little cash on hand as you need for living expenses because there is a high probability of a financial crisis and economic meltdown in the next few years, Top 10 Reasons I Own Gold & Silver. Also stay diversified in Cryptocurrency. I keep BTC, ETH, BCH, and a few others - do your own research, I like crypto with an emphasis on peer-to-peer, free and instant transactions, and proof of work. I also yield farm through ETH smart contracts while holding the underlying asset. You can check out Celsius Network, watch Alex Mashinsky on youtube to understand why. Gold and Silver can be owned either physically or through a custodian like bullionvault.com, or you can buy GLD and SLV ETF's (though you may lose your holdings in an economic crisis).
-The first five people to comment will receive a private message from me for some free Bitcoin Cash. You just click a link, download a wallet to your phone, and you can immediately spend it by sending it to anyone, anywhere in the world instantly and for free. No fees, no waiting, no permission from your local authoritative ruler. Your life, your choice.
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Bitcoin.com has a pretty good series on how cryptocurrency works
Satoshi Nakamoto and the Civil-War Within Bitcoin
Bitcoin is Returning to the TRAP of the Fractional Reserve Banking System
Skimmed through this, alot of good info. I'm going to read through it a few times later. I remember when I had 5 bitcoins in 2013 when the market was around 100 dollars lol
This is a great post man. I like that you broke down the steps and your links for further learning are solid. I’ve watched Mike Maloney’s vids and think that should be public education.
When I realized in 2019 the money in my bank is just a bunch of digits and they only keep 10% on hand, and lend out the rest, my common-sense told me how shady that is. Like you said, I don’t have control of my own money. To top it off, the fact that USD hasn’t been backed by any real store of value (gold) since the 70s showed me the feds can and do make money out of thin air which will inevitably inflate our currency to shit. Trillion dollar stimulus bills anyone? People think this is a far cry but in modern society, this has happened. WWI Germany, Zimbabwe, Greece, Venezuela etc.
Gold, silver, and crypto are hedges to that and crypto is even sicker cause you can make nice gains. As you said, block chain is the future and will eliminate industries like banking, title companies etc. Unless they adjust. Point is, more power to the individual and less to titans of institutions.
I actually don’t own gold but do own lots of silver. Its a bigger bang for your buck right now apparently. It’s at a 70:1 ratio and the pundits expect it going to 120:1. Those coins feel magical in your hands lol. Also own BTC, ETH, and some alts. ADA is very big to me as well that I believe will 10x in a few years.
I don't necessarily agree. I think there are plenty of people in the government, in both parties, that are REALLY good with money.
Remember, Trump said, "I have the biggest button with the biggest bombs" (or something like that) to North Korea. Biden's saying "I have the biggest purse with the loosest purse strings." to CHINA. Who's going to win the global economic war? REALLY?!
America DOES do everything bigger and better. I am certainly seeing strategy at work. The USG is very good
I go in and I'm crisp, clean and my vocals are fucking coming out like music. - Anonymous MW student
- Autismus Terminus Finis (Root Cause/Cure of Autism Epidemic)
- Called Off My Wedding & Other Turn Tail Signs Of The American Male
Skimmed through this, alot of good info. I'm going to read through it a few times later. I remember when I had 5 bitcoins in 2013 when the market was around 100 dollars lol
BC worth $100 in 2013?? Hmm.. I remember something different. Lol
I go in and I'm crisp, clean and my vocals are fucking coming out like music. - Anonymous MW student
- Autismus Terminus Finis (Root Cause/Cure of Autism Epidemic)
- Called Off My Wedding & Other Turn Tail Signs Of The American Male
Caliph you're way ahead of the curve haha.
Yeah I've been into Cardano for awhile now. Great seeing it take off recently.
How are you holding silver, just physical? I've had 90% silver since like 2013, but been buying a little more gold recently. A lot in ETFs to sell call options, but the gold bugs have convinced me recently to switch over to allocated and some physical.
BC worth $100 in 2013?? Hmm.. I remember something different. Lol
That was the 2013 Cyprus banking crisis in March when the government stole money from everyone's bank accounts. Everyone with over $10k in their bank account had the entire amount trimmed off. So if you had $500k, they took $490k and nothing you could do about it. But it didn't stop the cronies in government from telling their super rich friends to withdraw money a few days before it happened. Stories about Russian politicians and criminals flying in on their private jets, walking into banks and walking back out with suitcases of money and back onto their private jets. Everyone else lost everything. That was the first big rise in Bitcoin from like $10 to $150. Then in November, Silk Road was raided and got Bitcoin a ton of popularity and the price shot up to $1k for a few days. I remember I was with you when we saw the price hit like $900 in a day.
Yea jabronavich I’ve had it in a safe in a secret area of my house (the batcave). Although now I’m moving into a private depository because it has better security. I didn’t do the futures for the reason you mentioned that it is just paper in case something goes wrong and I’m not storing it at the bank cause its not accessible on the weekends. If something happens, my stuff is locked up. The private depository isnt that pricey and 24/7 you can do your thing.