Some Thoughts on Cryptocurrency

The Essence of Cryptocurrency Currency is a product of commodity exchange and can serve as a general equivalent. Gold, silver, and the US dollar are all currencies, but they are different. Gold and silver are naturally currencies, while paper money is just an equivalent symbol forced by the government. Cryptocurrency is much more complex. Generally, cryptocurrency is a transaction medium that uses cryptographic principles to ensure transaction security and control the creation of transaction units, and has the attribute of a general equivalent. However, the things represented behind it are not the same. Bitcoin is a valuable general commodity completely similar to gold and silver. Smart contract native tokens such as ETH are supported by teams and have application deployments behind them. People expect them to generate application value. Once they fall short of expectations, the value will fall. These smart contract tokens are more like stocks in the traditional financial world, just a kind of proof of stake. There are also some air coins like Hi and Pi that have no application and no value. They are purely Ponzi schemes and are worthless.

Behind the Heat Originally, blockchain, a geek technology, was far from the general public. However, the huge wealth demonstration effect brought by the 4 million times increase in Bitcoin in ten years has made cryptocurrency a wealth code that many people yearn for. It is estimated that 300 million people now hold cryptocurrency. Except for a very small number of geeks, decentralized believers, lovers of new things, and wealth managers, most people just want to get rich overnight. So the crypto world has become a hotbed for scammers. They either issue coins themselves, or stand for air coins and MLM coins ICO, or manage finances for customers, harvesting leeks who want to get rich one by one. After earning enough, they exchange their wealth for Bitcoin and then disappear. It is not an exaggeration to compare the currency circle to the wild west world.

Real Value As a highly imaginative technology, blockchain brings decentralization, anonymity, security and its own financial attributes, which are forces that can have a major disruptive impact on social structure. The performance of cryptocurrency in the Russia-Ukraine war has shown its value. For individuals, it can be used as an effective means of property preservation. For both sides of the military conflict, it can be used as an important way to evade financial sanctions and raise military funds globally. For humanitarian relief organizations, it can be used to raise donations and disclose the use of funds. Therefore, the Web3 world calls the Russia-Ukraine war the first crypto war in human history.

The Essence of Investing in Cryptocurrency Investing in cryptocurrency is similar to venture capital in the primary market.

Participate Early Crypto and CBDC are two completely different concepts and have completely different values. If you know a little about this Russia-Ukraine war and have a little sense of crisis, you should participate in Crypto as soon as possible. Of course, when participating, do not have the idea of getting rich overnight, otherwise you will be ruthlessly harvested. Just treat it as a means of understanding new things and asset preservation. If you don’t know which currency to hold, you can hold BTC and ETH without thinking, and then slowly study the entire crypto world.

Private Key is Everything Cryptocurrency wallets do not actually store digital assets, and the address you see on the wallet does not store assets either. Only private keys store assets. As long as you have the private key, you can operate the property on your address through various hot wallets, not just the wallet on your phone. Keeping the private key safe is the most important thing in the crypto world. If you lose the private key, you cannot retrieve the assets. Anyone or organization that asks you for the private key is a scammer.

Operate with Caution Any cryptocurrency sent to other addresses cannot be retrieved. Be sure to check carefully before sending to other addresses. Now some address generators can generate addresses with specified prefixes or suffixes, which are often used by scammers to defraud. Be sure to check before sending. Sometimes there are inexplicably huge amounts of strange tokens in the address. Unless you know the source, they are all phishing tokens. After interacting with the Dapp of these tokens, the wallet will be emptied.

Published at: Mar 2, 2022 · Modified at: Jan 14, 2026