Crypto Speak: Exit scam

This is a scam in which the developers of a project disappear with the collected investments without fulfilling their promised obligations.

This can happen in different forms: Developers can disappear after an ICO, collapsing the market value of tokens, or after raising funds for the development of the project without launching it.

The key signs of an “exit scam” are a lack of transparency, promises of unrealistically high returns, and the anonymity of the project’s creators.

An exit scam resembles exit liquidity, and exit liquidity resembles a rug pull. In general, scams related to liquidity collapse are common in the crypto world.

Crypto Speak: Burning

Coin burning in cryptocurrency is the process of destroying tokens or coins so that they disappear from circulation forever. This mechanism is used in the cryptocurrency world for several reasons, but the main one is to reduce the supply of coins.

If the demand for a token remains the same (or increases) and the supply decreases, it will inevitably trigger an increase in its price.

What is a blockchain explorer?

Today, we’ll discuss an interesting topic. A “blockchain explorer” is a search engine for a particular blockchain.

With the help of the explorer, anyone can view all transactions that have ever occurred on the blockchain. You can track transaction histories, public address balances, network hash rates, and other details. Consider it the Google of blockchains.

Remember when we discussed the anonymity of blockchains? So, with the help of the explorer, you can thoroughly study any wallet: see how much cryptocurrency it has, from which addresses it was received and where it was sent. You can examine every transaction on the network.

There are so-called multiblockchain explorers that allow you to “travel” through several blockchains at once.

Here are some recommendation for you:

— Blockchair: Supports many blockchains, including Bitcoin, Ethereum, and Ripple.

— CryptoID: Offers fast search and analytics for various blockchains, such as Ethereum, Bitcoin, and Polkadot.

— Blockchain.com: A widely used tool that supports Bitcoin, Ethereum, and Bitcoin Cash and is praised for its user-friendly interface and reliability.

You can use any of the explorers right now and start studying blockchains!

Random Bitcoin fact: More than 50% of mined Bitcoin is in just 1,000 wallets.

This is certainly not a good statistic concerning the world’s biggest cryptocurrency. Centralizing a huge volume of coins in the hands of a relatively small group of people adds to Bitcoin’s vulnerability.

Are crypto transactions anonymous?

Crypto transactions on blockchains are “pseudonymous,” meaning they can be traced to wallet addresses (via public keys) but have no direct connection with people’s identities.

Every transaction is open to the public, and anyone with an internet connection can view them. The date, the amount sent and received, the wallet addresses — all of this data is impossible to conceal.

However, if you use a non-custodial wallet, it will be impossible to identify you as the wallet’s owner (unless you deanonymize yourself).

For example, if you send crypto from a centralized exchange to your non-custodial wallet, the exchange now knows who the non-custodial wallet belongs to since you must pass Know Your Customer requirements by showing your ID.

Therefore, if you practice the basics, you can be completely anonymous on the blockchain, and no one will ever know your personal information.

What is “astroturfing?”

The term isn’t purely crypto, but in recent years, it has seeped into the blockchain world as well. It is the promotion of a product or service, such as an ICO, without disclosing a personal interest.

Celebrities such as Steven Seagal and Floyd Mayweather Jr. have been fined by the SEC in the past for astroturfing ICOs.

In other words, this is a situation where a celebrity who has received money for advertising “pretends” that they simply like the advertised project and recommend it to their audience.

Bitcoin Critique: Regular money works fine for me, so why do I need crypto?

Did you know that the purchasing power of the United States dollar has fallen by 95% since 1913? Since the U.S. dollar is the world’s reserve currency, it has a significant impact on all currencies.

Any money you’ve saved, even your pension, is like melting ice cubes: They lose purchasing power year after year. If your salaries do not keep pace, your financial situation will deteriorate over time. That is why wealthy people invest in things like art and real estate, which are greater stores of value than cash.

Bitcoin Critique: Cryptocurrency isn’t real, so how can it have value?

This is one of the most commonly used arguments. Only about 2%–3% of all money, as we know it, exists as coins and cash. The rest survives solely as records in a digital database.

Money has value because of how useful it is: It’s portable, divisible, fungible, long-lasting, and identifiable. It makes no difference whether the money is physical or digital, as long as it meets those requirements—and Bitcoin is one of them.

Given that fiat (government) money is only supported by authority (and the threat of violence or censure), consider why you believe your money has worth, whereas Bitcoin does not.

Bitcoin Critique: What happens to my Bitcoin when I die?

Bitcoin, and crypto in general, come with a different level of responsibility than traditional money. This is a feature, not a bug. It suggests that you should have a plan to pass it on if you...well...pass on.

If you’re not careful, you could lose your Bitcoin forever; figures vary, but approximately 3 million BTC is thought to be lost for a variety of reasons.

Estate and inheritance planning from firms like Casa already exists to ensure your Bitcoin is transferred when you pass away.

Bitcoin Criticism: Bitcoin is a fad; it will never catch on.

Kodak didn’t believe anyone needed digital machines. Sony thought the same way about digital music. Radio, television, the internet, cars, computers—virtually every significant invention in human history has gone through major phases of distrust and resistance.

Does this mean that Bitcoin and crypto are with us forever? Purely theoretically, no. But given that the market is not in its first, second, or even fifth year, it’s worth assuming that blockchains are something more serious than just a temporary trend.

Check out the attached image; it’s an article from 1996 making a prediction about the collapse of the internet.