Have you been following crypto? It’s hard not to hear about the highly volatile industry that has dominated the headlines. With the downfall of Dogecoin and Bitcoin following Elon Musk’s remarks on “SNL” earlier this month and the entire industry collapsing – or correcting itself – last week, then rebounding a bit this week , it is obvious that these currencies have very unstable values. But does that make those assets risky to invest in?
Although most people have heard of cryptocurrencies like Bitcoin and Etherium, many people are reluctant to invest because there is still a lot of speculation around crypto. On the GoGedders podcast, we called on three Milwaukee executives who have been following cryptocurrencies closely: Erin Magennis is a neuroscientist and CTO at Spree; Christopher Perceptions is the founder of PerceptForm, an end-to-end ecosystem of cryptocurrency / blockchain products and services; and Alec Shaw is a business development partner at Sperax and the co-founder of the Marquette University Blockchain Lab. Together, we can help you find out everything you need to know about Crypto, Bitcoin, Ethereum, Dogecoin, NFTs and more!
âCryptocurrency: we can break this down,â Perceptions explained. “Crypto, paying homage to cryptography, then to currency, to the movement of goods or services … so it’s just digital currency, digital currency, digital value. Cryptography is a way extremely secure to encrypt information. â
One of the reasons cryptocurrencies are so secure is that they are decentralized. Transactions are carried out through what’s called a blockchain, which looks like a digital ledger, with several computers coming together to agree on the values ââof the transaction. This makes all direct transactions without a middleman, making them almost impossible to trace.
â(The blockchain) is not managed by a central individual, it is not managed by a company, it is not even managed by a government; it’s run in this truly unique, decentralized way that allows users, as well as engineers, to trust the infrastructure, âShaw said on the podcast.
âWhen we think of the blockchain as a database, we can think of it as a giant Excel spreadsheet that we all look at at the same time, but instead of being individual people, it’s actually these computers, or servers. , it’s watching it, âadded Magennis. “So if I wanted to go in and edit a cell and link it to something else, which could be an NFT, everyone would see it too.”
All three guests seemed to agree on the safety and security of cryptocurrency transactions and the technology behind it – but what about the value and safety of cryptocurrency investments? Will an investor see a good return on their investment or is they just playing it by chance?
Bitcoin has gained much of its value simply by the rules of supply and demand; the supply of bitcoin is limited, so people naturally want it. No matter how strong this “desire” is, the coin will influence the value. It takes any surprise that Bitcoin’s value fell below $ 40,000 after Musk’s announcement that Tesla would stop allowing currency as a payment method due to the negative impact of mining from Bitcoin on the environment. Much of the same can be said of the highly-remembered currency Dogecoin, whose value dropped significantly after Musk called it a âhussleâ on SNL. As scary as the volatility and the articles in the news are, Erin, Alec and Christopher kept us bullish on the podcast on the future of crypto.
âEther – the asset that runs on Ethereum, as well as many applications built on Ethereum, many tokens on Ethereum – actually earn a fee,â Shaw said. They won’t pay you anything, they won’t earn you any income, “that’s wrong.”
The Ethereum network has many applications that are changing the crypto space. Ethereum took all the good things Bitcoin was doing and built something different and innovative in it. A major difference between the two is that Ethereum is programmable. Bitcoin is super basic in that you can send X amount of Bitcoin from one individual to another. When the transaction is complete, this amount X is added to the recipient’s account. With Ethereum, we have just started to scratch the surface of the possibilities and applications of smart contracts.
If you are considering entering the crypto market, our guests wanted to stress the importance of more established coins, and buy and hold what you have for the longer term to ensure you see a return on your investment. They recommended keeping your coins for at least three years before trying to sell. The value will most likely remain very volatile, but the overall trends have been positive.
We’ve covered tons of valuable information in this episode; please check it out if you are still curious to learn more about crypto. You can find the GoGedders podcast on Spotify, Apple Podcasts and Google Podcasts, or find us on our website at www.ggmm.io.