4 Must-Knows About Bitcoin, Cryptocurrency, & Blockchain by Nicole Villa - Essay
Updated: Apr 28, 2022
(Click above to listen to this article. Video editing by Dinorah Delfin)
“Paper money is going away” – Elon Musk
The following are 4 important cryptocurrency and blockchain insights, for beginners, and not so beginners!
Observe Patterns & Trends Before Jumping In
You May Not Know How or Where to Research
Be aware of ‘Sophisticated’ Users
Redefining Brand Loyalty (and Scandals) in the Crypto Space
1. Observe Patterns & Trends Before Jumping In
We all know that history repeats itself.
That said, if you go into the cryptocurrency & blockchain space, don't think you're the exception for anything negative that could happen. This false thinking could stem from naiivety, willful arrogance, or stubbornness. You’ll be better off if you’re the naïve one. The last two habits, won’t serve you well with cryptocurrencies of any kind. Especially the highly volatile and experimental ones.
There’s usually a disconnect between what people say and do. This really comes down to: keen self-awareness and critical thinking.
Don’t take information without vetting it!
In R&D, researchers use study groups where sometimes they ask participants questions before they start a task, such as allowing them to verbally project how they think they'll perform. After having taken action, participants don’t realize their choice was influenced by the seemingly unrelated questions from the researchers. The cryptocurrency & blockchain space is no different.
Then, there’s outright lying and deceit regarding full disclosure of the truth.
Give the benefit of the doubt, but do your own research. If you are unsure of a situation and your money is being proposed to be put on the line, anyone who is genuine and trustworthy will give you the time to research. Tell people you'll take your time to get back to them. Don’t do business if you aren’t given the time to research. Making a fast return on investments is possible, but most financial speculations usually sound better than what they are.
The examples in the following financial sources illustrate how money is lost with Cryptocurrencies:
Example 1: Quadriga Loses $140 Million
Example 2: Cryptocurrency Scams