Crypto in Plain English - by cryptohunt.it

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What does "FUD" stand for? - Crypto in Plain English - Episode 243 - by cryptohunt.it Sep 02, 2022

Show notes

Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. My name is Christian Byza, Co-Founder of Cryptohunt.it and I am your host of this daily show.

"FUD" a term you'll often find used by crypto people on social media, is an abbreviation of "Fear, Uncertainty, and Doubt".

It would be easy to think that this is meant to be a good thing - after all you'll want to be careful in a market so full of speculators and scammers.

But it is used as a negative call out by crypto people talking down to those who sold because they got what others consider cold feet.

Why? It helps to understand the general sentiment in crypto. As the market is largely driven by speculation, it only grows on the believe of people that it will grow more. That's why the community has developed elaborate ways to put peer pressure on those who disagree and get out. "FUD" is one of those.

We say: Who cares what other people say, especially if they have ulterior motives. Make up your own mind, gather your own knowledge. For an unbiased view on crypto, check us out at cryptohunt.it - we'll never talk down to you, promised!

Disclaimer: This podcast references our opinion and is for information purposes only. It is not intended to be investment advice. Do your own research and seek a duly licensed professional for investment advice.

What is FOMO and why is it so important to understand? - Crypto in Plain English - Episode 242 - by cryptohunt.it Sep 01, 2022

Show notes

Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. My name is Christian Byza, Co-Founder of Cryptohunt.it and I am your host of this daily show.

FOMO - short for “Fear of missing out” is one of the most important terms to understand crypto markets.

In the context of blockchain investments it refers to people looking at others making money, and fearing that they’ll miss out if they don’t put money in now.

And that’s understandable: It’s one of humanity’s most basic emotions. The neighbor suddenly drives a Lamborghini, so clearly you can make it too, right?

Arguably, FOMO has impacted crypto markets more than anything. Absent of solid fundamentals, meaning large real world use cases and mature technologies, crypto has remained mostly an asset for speculators. And speculators benefit most, if everyone gets in on something.

So next time your 60 year old aunt is talking about Bitcoin, ask yourself: Is it maybe time to get out because FOMO has already gotten to everyone?

What does “WAGMI” mean? - Crypto in Plain English - Episode 241 - by cryptohunt.it Aug 31, 2022

Show notes

Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English. My name is Christian Byza, Co-Founder of Cryptohunt.it and I am your host of this daily show.

WAGMI is a popular rallying cry often used by crypto enthusiasts and is an abbreviation of the grammatically incorrect phrase “We All Gonna Make It”.

It encapsulates the belief that you can’t lose in crypto if you hold on long enough, because no matter how much prices fall, there will be the next bull run.

That of course, may not actually be true, and deep down you know that WAGMI proponents know this. But as a rallying cry it helps to get social confirmation from others, making it easier to stick to the strategy.

And there you have it - what is your opinion? Hold on for dear life, or try to outsmart the system? And in case you disagree, there is always "NGMI": "Not gonna make it".

What are Tokenomics? - Crypto in Plain English - Episode 240 - by cryptohunt.it Aug 30, 2022

Show notes

Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English.

Tokenomics refer to the internal economics of a cryptocurrency or token.

You have to understand that each of those have very individual mechanics. There may or may not be an upper limit of coins, miners get a certain amount, rewards may be given to holders, or some coins might even be destroyed over time.

Tokenomics is a term that describes all of those dynamics and many investors believe that understanding them improves their decisions. Bitcoin, for example, has a supply maximum of 21 million Bitcoins, and some investors believe that this creates scarcity that will continue to push the price up. Others think it doesn’t matter.

So - in our opinion, it’s good to know each tokens Tokenomics, but at the end of that day that is just one way to look at things.

What does “apeing crypto” mean? - Crypto in Plain English - Episode 239 - by cryptohunt.it Aug 29, 2022

Show notes

Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English.

Bored Apes, Ape Coin… What’s up with all the monkeys in crypto?

Well, they are all named after a crypto term called “apeing”.

Apeing means taking an abnormally large and risky position in a crypto investment. If someone says: “I just aped into Bitcoin”, they mean that they just bought an irrationally large amount of it, hoping their speculation will work out.

It’s not entirely clear where the word comes from, but we ensure you that apes are probably smarter than some of those investors. Apeing is nothing other than gambling, and seeking public attention while doing it.

We prefer doing your own research and making smart decisions that play out in the long term - but in the end it’s really up to you!

Talking about smart decisions - if you want to listed to all 5 episoded of this week already - check out our parteon account to get early aceess under www.patreon.com/cryptoinplainenglish. Thanks so much already if you end up supporting us that way!

Why are wallet sanctions a problem for blockchains? - Crypto in Plain English - Episode 238 - by cryptohunt.it Aug 26, 2022

Show notes

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Why are wallet sanction a problem for blockchains?

Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English.

Yesterday, we talked about Tornado Cash, a service that was sanctioned by the US government because it allowed money laundering on the Ethereum blockchain. With that also came sanctions of 45 specific wallets.

What that means is: No US company or individual can do business with, or interact with those wallets.

Sounds easy enough? Actually, this makes things pretty complicated.

You see - these wallets are still recorded on the Ethereum blockchain. By design, a blockchain’s history can’t be altered. And they will likely move money again, and there is nothing the US government can do about that.

When transactions happen, a blockchain validates those. That means it has to interact with the wallets by checking and updating their balance. And this could potentially violate sanctions, putting Ethereum miners at risk whether they want it or not if they operate out of the United States - which the majority do.

It also creates issues for anyone operating any software connected to Ethereum: They will have to make sure to ban wallets associated with Tornado Cash, but due to the nature of the service, it will be impossible to know which ones are.

There you have it - this is the first time sanctions like this have been put in place. Keep an eye on the news, because this might get interesting.

What is Tornado Cash and why was it sanctioned in the US? - Crypto in Plain English - Episode 237 - by cryptohunt.it Aug 25, 2022

Show notes

CLICK HERE to learn more about Ethereum through our FREE course!
What is Tornado Cash and why was it sanctioned in the US?

Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English.

Today we are going to take a quick look at Tornado Cash, a so called mixer or tumbler for crypto.

This service allows crypto holders to hide the true origin of their funds.

Remember that sending crypto is usually simple and traceable: One address sends a specific amount to another and anyone can see that transaction because the history is public.

Some people, however, want to stay not only anonymous, but move around money in a way that origin, destination, and amount are all untraceable.

Tornado Cash does that. It works a bit like a bucket. It combines incoming funds from all kinds of senders before it sends them to destinations in random amounts - hence the term blender. That way, it’s near impossible to figure out who sent what where, even though we have the transaction history.

Think no good can come of that? So does the US government which says that Tornado has been involved in money laundry with North Korea. It just sanctioned the use of the service and 45 associated wallets.

And next time we’ll talk about why those sanctions could pose a real practical problem for blockchains like Ethereum, even if they didn’t necessarily do anything wrong.

What are Bitcoin ATMs (BTMs) and why are they not everywhere? - Crypto in Plain English - Episode 236 - by cryptohunt.it Aug 24, 2022

Show notes

CLICK HERE to start learning about crypto and blockchain technology! (It's beginner friendly!)
What are Bitcoin ATMs and why is it likely that you have never seen one in your life?

Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English.

Bitcoin ATMs are machines you can withdraw cash from, and often deposit it as well. But unlike traditional ATMs, they accept Bitcoin and - despite the slightly misleading name - often other crypto.

The idea is pretty simple: Send a certain amount of Bitcoin to the ATM to withdraw cash, or deposit cash to be sent to your Bitcoin address.

Sounds useful, right? So why are there only 25,000 of those worldwide despite the crypto craze of the last few years? The answer is: Criminals.

Governments aim to prevent money laundry, and unfortunately those Bitcoin ATMs are excellent for that. Here is how it works: Say you got paid for illegal activities, and want to deposit that cash somewhere. Traditional banks will need you to identify yourself before you can do that, and the money becomes traceable.

With Bitcoin ATMs, you deposit to a blockchain wallet, which will be anonymous as long as nobody knows who’s behind it.

And that’s why you have likely never seen one in the wild: Most local and federal governments don’t allow them to operate unless the user is identifiable, which makes the process so much harder that most people won’t bother using them.

But keep your eyes open - there are more and more out there regardless. And if we peaked your curiosity, get closer and inspect how they operate.

What is FDIC insurance, and what does it have to do with crypto? - Crypto in Plain English - Episode 235 - by cryptohunt.it Aug 23, 2022

Show notes

What is FDIC insurance, and what does it have to do with crypto?

Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English.

Today, let's talk about a major regulatory rule in the United States, the FDIC insurance, and what it has to do with crypto.

Personal bank accounts in the United States are usually protected by this deposit insurance. It is a government operated, bank funded protection against the failure of your bank. In the unlikely event that your bank collapses, your deposits are usually covered up to hundreds of thousands of dollars.

The reason why this matters for crypto investors in the United States, is simple: That insurance doesn't exist for them. Many assume that the same protections apply across different financial organizations, but the reality is that the bankruptcy of a crypto exchange or DeFi company may simply cause your funds to disappear over night.

Think that's a hypothetical risk? Not so fast. Celsius, which marketed itself as the anti-bank, recently collapsed and owes people $5.5 billion US dollars. Three Arrows Capital, a crypto hedge fund, owes $3.5 billion - meanwhile the founders are building a $50 million dollar yacht. And it took crypto brokerage Voyager down with it, which in turn lost $1.3 bn in customer assets.

So there you have it - governments often step in to help people avoid total loss. If you are in the United States, always consider that trusting a crypto firm with your money means you get none of the protections a traditional bank would give you.

What’s going on with Canada’s 30k CAD crypto limit? - Crypto in Plain English - Episode 234 - by cryptohunt.it Aug 22, 2022

Show notes

FREE COURSE: Ready to start diving deeper into the world of crypto? CLICK HERE to begin our Introduction to Crypto and Blockchains course!
Welcome to the Cryptohunt Jam, where we spend one minute a day to explain crypto. In plain English.

Canada might have just become one of the most restrictive countries when it comes to buying crypto: A new limit introduced by several crypto exchanges means that Canadians can now only buy 30,000 Canadian Dollars worth of alt coins per year.

What does that mean exactly, and why have they done that? Let's dig in together!

Strictly speaking, an Altcoin is any crypto currency that is not Bitcoin. But that definition is somewhat outdated given the dominance of alternatives such as Ethereum. For Canadians, four cryptocurrencies are excluded from the purchase limitation: Bitcoin, Bitcoin Cash, Ether, and Litecoin.

This abrupt change comes as major Canadian exchanges are trying to get regulatory approval from Canada's Ontario Securities Commission, short OSC.

The OSC's intention is to protect consumers from speculating on or becoming victims of scams in lesser known Altcoins. And if you look at the history of the crypto market, this is understandable: Many people have recently lost money they couldn't afford to lose by betting too much on the crypto market, specifically Altcoins that promised everything and delivered nothing.

And this change also comes with a mandatory questionnaire that explains the risks to prospective traders.

If you ask us, we have split opinions on this: On one hand, we are all for consumer protection, especially through education. That's why we have built cryptohunt.it - to give you a place where you can build your own knowledge. But limiting things to an arbitrary set of 4 crypto currencies is debatable: Why not include something like Solana, which is in the top 10 by market cap, but Litecoin which is not even in the top 20?

As always, things are more complicated in practice than they seem. We'll let you be the judge on this one!

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