Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,153,507 members, 7,819,838 topics. Date: Tuesday, 07 May 2024 at 02:14 AM

The Rise Of Cry-pto: How It Broke The Bank, Lesson Learnt. - Technology Market - Nairaland

Nairaland Forum / Science/Technology / Technology Market / The Rise Of Cry-pto: How It Broke The Bank, Lesson Learnt. (163 Views)

The Rise Of AI In Digital Marketing: Unlocking Opportunities For Personalization / The Rise Of Tecno Smartphones In Nigeria's Mobile Market / I Attended Eyowo Launch Press Conference And This Is What I Learnt (2) (3) (4)

(1) (Reply)

The Rise Of Cry-pto: How It Broke The Bank, Lesson Learnt. by flexydote(m): 4:17pm On Oct 19, 2022
This is a story of revolution and redemption, a tale of obscene wealth and power for those who will work with this information today.

HOW IT BROKE THE BANK

I was still an undergrad student In 2009 when Bit-coin was first introduced to the public by an anonymous developer named Satoshi Nakamoto.

Initially it was thought to be a joke because of its operational concept. I mean, when you think about it back then you would have every reason to call it a complete bull$hit but then few people who were free minded and like to think outside the box reasoned to get their hands on this new known digital currency.

Originally, Bit-coin was worth next to nothing but the first monetary value was in October 2009 when Martti Malmi a Finnish computer science student sold 5,050 coins for $5.02, making the worth of Bit-coin to be $0.0009 each.

Fast forward to 2010 when something remarkable happened.

A Floridian programmer named Laszlo Hanyecz had actually made a post on the Bitcointalk.org forum on May 18, 2010, that he planned to use Bit-coin to buy pizza, preferably two large pies and was willing to pay 10,000 Bit-coin to anyone who could place an order, collect the cry-ptocurrency, and bring it to him.

Well his wish was granted because on May 22, Jeremy Sturdivant, a 19-year-old at the time, accepted the offer of 10,000 Bit-coin for two pizzas, valued at around $41 back then and got it delivered to Laszlo Hanyecz.

Looking back now I guess Laszlo Hanyecz would be in total regret because 10,000 Bit-coin today is worth over $200M.

This is where it gets really interesting....

THE WINKLEVOSS TWINS:

In 2008, the Winklevoss Twins had already cashed out a whooping sum of $500 million from the suite against Mark Zuckerberg (Facebook).

Not knowing what to do with the money they flew to Ibiza, Spain in 2012 where they met David Azar who told them about the magic internet money (Bit-coin).

As they listened to David Azar they were sure that Bit-coin was either a complete rubbish or a really big deal, just that they really didn't know which one yet.

But as David begin to explain how Bit-coin is Digital Money, an electronic cash system that is completely decentralized such that it cuts out the need for middle man or banks plus there will only ever be 21 million Bit-coin in circulation so the government can't just keep printing more whenever they want just like the paper money.

Giving that the banks had just been bailed out of the 2008 market crash they easily saw some of the benefits of a decentralized system of money and instantly wanted to become a part of it.

Long story short, the twins later invested $1.2M in Charlie Shrem's Bitinstant company in 2013 and bought about 200,000 Bitcoin which is about 1% of all Bit-coin - Bitinstant help people buy Bit-coin the easy way just like we have Binance, Coinbase and others today.

Luckily for them some unexpected events in a small Island was about to change everything.

C Y P R U S

Banks in Cyprus had made a series of really bad investments, as a result, they were now broke.

So they reached out to the EU for a bailout but they told Cyprus that the only way they could help them is if they came up with some of the money themselves. Really!!!!

Well, the way Cyprus decided to do that was essentially taking money from the citizens. So if you were living in Cyprus at that time, one morning you'll wake up, check you bank balance and notice that part of your funds have been confiscated to cover the Country's dept. Very cool right?

All over the world, this raised alarm of a centralized system where the Government and Banks have the power to do whatever they wanted. From this point on, people began to see the need for a decentralized system.

People all over the world began to buy Bit-coin and the price of Bit-coin kept rising on a daily basis, up to this day.

LESSON LEARNT

The twins kept embraced the digital economy early by simply taking action after they heard David Azar's speech on the magic money (Bit-coin).

Today you don't need to have millions to invest in digital assets.

1.) Always invest for long term: The Winklevoss twins have held on to their Bit-coin through the highs and lows. According to some media reports, the only time they sold any Bit-coin was to set up new companies or buy other new digital asset that they believe will perform well in the long run. That way, they won't be as impacted if their assets fluctuate in the short term.

2.) Choose a reputable cry-pto company to invest in ensure you do your research very well.

3.) Live below your means: Even when the first Bit-coin peak took their assets to over a billion, the twins didn't rush out to buy flashy cars. In fact, in 2018, only one of the twins owned a car at all, and it was bought secondhand.

Sure, Bit-coin has made some people into millionaires overnight. But there's a more dependable way to build wealth: Don't spend every cent you earn, and invest money when you can. Investing in the right digital asset can even be able to help you retire early.

S U M M A R Y

We are in the midst of a cry_pto gold rush, and it's easy to get caught inbetween, but it's important to remember that digital assets (c r y p t o) are highly volatile. And it is never a good idea to invest money you can't afford to lose. The Winklevoss twins show us how important it is to think long term. That way you avoid panic selling if your investments lose value, or panic buying for fear you might miss the boat.

Do you want to know which digital asset will do more than 500% next year?

Do you want to find out how to spot a shit coin that will possibly make you few extra thousand?

Do you want to just know where to invest your asset and watch it grow without doing a single thing?

WhatsApp number in signature If you wish to know any of these.

Cheers...

(1) (Reply)

Earn Your First $1,000 Through Affiliate Marketing And Other Digital Skills. / How To Restrict Unwanted or Unexpected Persons From Entering A Restricted Room / Do I Need To Use Non-fungible Token Development Services?

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 50
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.