What's The Difference Between These Coins?
Aren't all coins alike? Isn't Bitcoin just a slower Ethereum or Ripple? Every time I see a piece on cryptocurrencies in the mainstream press, they seem to make little distinction between the use cases for different project tokens. In the interest of keeping this high-level, it's important to understand that there are at least three different "types" of tokens: currencies (Bitcoin, Litecoin, Ripple), platform tokens (Ethereum, Neo, EOS, Cardano, WAVES, Stratis), and utility tokens (Bancor, Augur, Winding Tree). There are countless Youtube videos describing the differences between these types of tokens, but my summary statement is that platform tokens are where the most risk should be placed in the short term because these tokens will be consumed every time a user needs to interact with their respective blockchain. Ethereum is the clear front runner at the moment, so we can use it as an example. Here is a list of things that consume ETH when interacting with the Ethereum blockchain:
Sending ETH to another user (duh) 👩🏻💻💰➡️👨🏿💻
Making an Ethereum program/smart contract save information on the blockchain, even if it's just random bits of text 👩🏻💻💾➡️🤖⛓
Making an Ethereum program/smart contract to do something, even if that program is simply to say "hello". 👩🏻💻🛠➡️🤖🗣
Making an Ethereum program/smart contract to talk to another program and pass or retain some data.🤖🛠➡️🤖💾
Furthermore, most utility tokens currently in circulation are built on Ethereum, so every time someone needs to interact with the utility token, they are paying processing costs in ETH... and there are currently a LOT of utility tokens.
This is why I frequently make the analogy that oil is to transportation as ETH is to decentralized computing: as the utility and usage for Ethereum increases, the ETH token becomes more scarce, and in theory, price outlook gradually improves.
Now maybe you are asking yourself which platform you should invest in? That's the (multi-)million dollar question right now, but I would (and do) make the argument that Ethereum is light-years ahead of the pack, but that's a topic for the future.
Recent video gems
Former Facebook Exec Chamath Palihapitiya On Social Media, Bitcoin, And Elon Musk (Full) | CNBC
This guy was one of the longest running early Facebook execs and is co-owner of the GS Warriors. GREAT video about a wide range of topics, one of which is why he doesn't allow his kids to own "screens" (phone, tables, etc). Bitcoin conversation starts at 10:15. His basic point: if you are going to invest $100, put $1 in BTC.
Get 2000% Returns GUARANTEED* In These Legit Pump Groups! Easy Bitcoin
Another great video by Doug Polk summarizing my opinions on alt coins (any token OTHER than BTC or ETH) and pump and dump crews that seem to be ALL OVER the crypto scene right now.
Bitcoin Q&A with Andreas M. Antonopoulos: Network protocol design and privacy
Good, but very technical explanation on why computer networks are segmented by "layers", specifically in regards to Lightning Networks.
88N8 Digital Gold (Prod. Pyrodagod) Directed by Keem Ibarra
Sick rap about crypto! WARNING: contains NSFW language and factually incorrect tax advice, parental and CPA guidance is advised! Love the song though. (Thanks Brishen!)