Is Crypto like a Video Game?
Description
Do you feel like a Level 70 Cryptocurrency master or a level 5 novice? Learning about Crypto ain't easy and there are many mistakes to be made - but one thing is for sure - its hella fun! 👍🏻Subscri...
AI Analysis
The world of cryptocurrency is often compared to a video game, where you start as a level one newbie and progress through various stages, encountering different challenges, or "monsters," along the way. Each obstacle overcome or lesson learned helps you level up, making the journey both challenging and incredibly fun.
Here's a breakdown of the crypto "game":
* Starting as a Level 1 Newbie:
* You likely begin with major cryptocurrencies like Bitcoin or Ethereum, as they are the easiest to acquire.
* Your first "monster" encounter often involves impersonation scams, like fake Vitalik Buterins promising to give away Ethereum if you send them a small amount first. Smart players recognize these as scams and level up by avoiding them. Even falling for one can accelerate learning.
* Another early "monster" is Bitcoin doubling scams, which claim to have found a "hack" to double or even quintuple your Bitcoin if you send it to them. These are obvious scams to avoid. Defeating these early monsters helps you gain experience and level up.
* Venturing into Altcoins and Exchanges (Level 10-ish):
* Around level 10, you start exploring the vast world of altcoins and using exchanges to trade. This stage is both exciting and dangerous.
* The fun comes from discovering new altcoins and joining their communities, much like joining a guild or society in a game. These communities might even offer "bounty campaigns" where you can earn free coins for promoting the project or even programming for it.
* New "monsters" appear in this altcoin landscape:
* Pyramid Schemes / Ponzi Schemes (e.g., Bitconnect): These lure you in with promises of extremely high returns, like 7% per week. While they seem incredibly appealing at first, investing in them will lead to financial ruin ("getting wrecked"). Promoting such schemes can also damage your friendships.
* Pump and Dumps: These manipulate you into thinking you have "inside information" about a coin that's about to "pop" due to upcoming news. They show impressive past gains (e.g., 300%), making you feel smarter than others. However, if you buy in, the price will tank dramatically (20-50%) soon after, revealing you were merely "played" by manipulators.
* Unit Buyers (The "Cheaper is Better" Fallacy): Many new players think that because Bitcoin is expensive (e.g., $10,000), cheaper altcoins are more likely to "pop." However, this ignores circulating supply. Coins are cheap often simply because there are billions or even trillions of them, unlike Bitcoin's limited 21 million maximum supply. A low price per unit doesn't inherently mean higher growth potential.
* The Bitcoin Maximalist Path:
* Some players might decide at this stage that altcoins are too overwhelming or don't offer enough unique value beyond decentralization. They might choose to become a Bitcoin maximalist (or elitist), focusing solely on Bitcoin and effectively "ignoring the rest of the game."
* Entering the ICO Stage (Hard Mode):
* For those seeking higher risk and reward, the Initial Coin Offering (ICO) stage presents the next major challenge. ICO prices are extremely volatile, but they are also where the "max money is made" if you pick a winner.
* ICOs are entirely different beasts, resembling startups. The biggest challenge here is balancing social hype with a solid project that has actual underlying value. The "monsters" are no longer obvious scams; they are subtle, complex business challenges.
* It's crucial to understand that ICOs are startups, and the vast majority of startups (70-80%) fail. The biggest and most tempting trap at this level is to go "all in" on a single ICO. Doing so, like a "Leroy Jenkins" charge, can lead to losing everything and being "kicked out of the game."
* Actionable Takeaway: A balanced and diversified portfolio is extremely important at this stage. You need to learn about many projects and avoid going all-in based purely on hype.
* Beware of survivor bias: You'll constantly hear stories of "moon landings" and 100x or 10x returns from successful ICOs, which appeals to your greedy side. However, the "bodies"—the vast number of failed ICOs—don't speak up.
* Actionable Takeaway: Always do your own research (DYOR). Ensure a project has both perceived value (hype) and actual value (a clear path to revenue and a business model). Decentralization alone is not a guarantee of success; a project needs to bring in revenue and have a viable future like any traditional business.
The journey through cryptocurrency is indeed like a video game, full of learning, challenges, and the potential for great rewards if you navigate wisely.
Transcript
I just realized today that cryptocurrency is a video game and I'll tell you exactly why in this video. So you start off as a level one newbie. You just got into cryptocurrencies. You probably heard about it on the news or on some sort of social media. So you probably start off with Bitcoin or Ethereum. They're the major ones and they're the easiest ones to buy. You're also going to encounter Vitalik Buterin. He's going to come up to you and say, hey, you know, I'm going to give away all my Ethe...