Make Crypto Simple

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It’s hard to remember my life before crypto. I’m honestly not sure what I used to fill my free time with. Learning about the future of finance has been so much more valuable than playing video games or watching tv, or whatever else I used to do.

My crypto knowledge is almost completely self-taught. I haven’t taken any courses. I learned from Youtube, reading books and articles, conversing with others in the space, and most importantly, trying and working with the blockchains and cryptocurrencies themselves.

Why is this important? I’m just like you. I’m a regular person. I have no coding knowledge or technical background.

I’ve spent the last 2.5 years inside the cryptoverse and soaked up everything I could. I’ve lost money, been scammed, rugpulled, and bought the very top of the chart. This, however, is the price of tuition. Experiencing these things for yourself is the only way to truly learn. On the other hand, I’ve also made returns that one couldn’t even dream of.

It’s time to tell the tale of my Crypto Oddessy. The beginning, at least. Here’s the story of how I got into crypto and the day my life changed forever.

It was April 11th, 2021. I was outside playing basketball in the street with some family and friends. I overheard my neighbor Sam telling my dad about some machine he had that was making money for him.

Being the curious person that I am, I jumped into the conversation asked for a quick summary of what I missed. What Sam proceeded to tell me made absolutely no sense.

It wasn’t his fault - the content was just very complicated. He told me about these machines that mine crypto. You put them in your house, and they connect with other machines on the network. You’re rewarded with crypto for keeping the machine running.

What?

Just then, the game was ready start back up. We jumped back on the court and that was that.

The very next day, I sent Sam a text to schedule some time to discuss this further.

Money making machines? My interest was piqued… and I HAD to understand! He agreed to help me and at 3:30 on April 19th, 2021, my crypto journey officially began.

Brrrring! Brrrrring!

“Hey Sam”

“Hey Chris, what’s up?

“At the office - as you know I’m a financial advisor….I just finished processing some transactions for a few clients. We manage their money, so they can’t process the transactions themselves.” I replied.

“One of my clients needs the money by Friday…” I continued, “but with all of the intermediaries and bureacracy, I don’t think the funds will arrive in time.”

Sam chuckled at the irony of what I had just said and asked:

“Are you ready to dive in?”

And boy, was I.

“The project that I was talking about on the court is something called Helium. It’s a new kind of wireless network that’s owned by the people, not by large corporations. Helium allows everyday people like you and me to run and maintain the network. This is cheaper than, say, owning up towers all over the place and paying an arm and a leg to maintain them. You’re paid in Helium tokens (HNT) for your work.”

“Hmm.” I thought. “So you’re saying that it's a decentralized network where individuals can contribute to its infrastructure? And they’re rewarded with cryptocurrency? That sounds innovative. How does it actually work? Do people need special equipment to participate?"

“Woahh… slow down.” Sam said as he smiled. “Yes, you need special equipment. I’ll help you get set up if you’d like, but let’s take a step back. Before you get started with mining Helium, you need to understand crypto as a whole.”

Crypto as a Whole

“The first thing you need to understand about crypto is that it’s much more than just Bitcoin.” Sam was adamant on this. “There’s a whole ecosystem of projects with different use cases.”

“Back up!” I said. “You mean to tell me that the dog coins I see memes about actually have a use case? Not to mention, there are other projects that I’ve never heard of, that actually have a purpose besides being a scam?

“Maybe not the meme coins.” Sam said with a laugh. “But yes, there are actually hundreds, if not thousands of different cryptocurrency projects with no affiliation, most with their own cryptocurrencies, that come together to form the greater crypto universe. You can think of them each like a company, but they operate very differently.”

Sam proceeded to tell me the key differences between traditional entities and blockchain based entities. Here they are:

1. Decentralization:

   • Crypto: Operates on decentralized networks where control and decision-making are distributed among users or stakeholders.

   • Traditional: Centralized governance structure with decisions made by executives and board members.

2. Ownership and Control:

   • Crypto: Often community-driven, with token holder having a say in the direction and governance of the project.

   • Traditional: Ownership is typically in the hands of shareholders, and control is centralized within a corporate hierarchy.

3. Transparency and Auditability:

   • Crypto: High level of transparency, as most transactions and activities are recorded on a public blockchain that is accessible to anyone.

   • Traditional: Transparency is often limited to what the company chooses to disclose publicly. Financial audits are standard but not as continuously accessible

4. Innovation and Agility:

   • Crypto: Tends to be more innovative and agile, quickly adapting to new technologies and market demands.

   • Traditional: Often slower to innovate due to larger size, more bureaucracy, and risk-averse nature.

5. Asset Nature:

   • Crypto: Assets are digital and often global, not tied to any specific country or financial system.

   • Traditional: Assets are typically tangible and closely tied to specific legal and financial jurisdictions.

6. Community Engagement:

   • Crypto: High level of community engagement where users, developers, and enthusiasts actively participate in the project’s development and promotion.

   • Traditional: Limited community engagement, primarily through customer service channels and marketing initiatives

“So what you’re telling me is that there is an entire universe of entities, like companies but ones that operate completely differently. They’re designed to cut out middlemen, save costs, and they’re owned, operated, and maintained by the people? And there are hundreds, if not thousands of them that exist right now, that you and I can participate in?

“Yes.” Sam replied. “Now you’re starting to get it.”

Helium

Back to Helium.” He said, as he continued to tell me about The People’s Network. Here’s a summary of what he said:

1. What is Helium?

   • Helium is a new kind of wireless network, but unlike traditional networks run by big companies, it's created and run by regular people.

2. Purpose of Helium:

   • The main goal of Helium is to provide a wide-reaching wireless network for Internet of Things (IoT) devices. These are devices like smart thermostats, pet trackers, or any small device that needs to connect to the internet.

3. How It Works:

   • People like you and me set up small devices called Helium Hotspots in our homes or offices. These hotspots provide wireless coverage for IoT devices in the area.

4. Decentralized Network:

   • Instead of one company owning all the equipment (like cell towers), Helium is made up of all these individual hotspots. This is what we mean when we say it's a 'decentralized network'.

5. Earning Rewards:

   • When you run a Helium Hotspot, you earn rewards in the form of Helium tokens (HNT), which is a type of cryptocurrency. You earn these tokens by providing wireless long-fi coverage or validating data transactions on the network.

6. Easy to Join:

   • To join, you need a Helium Hotspot, which you can buy online. Once you set it up, it connects to your internet and starts providing wireless long-fi coverage.

7. Benefits:

   • The network is low-power and long-range, making it perfect for IoT devices that don't need a lot of bandwidth but need to stay connected over long distances.

   • For hotspot owners, it's a way to earn digital currency and participate in a new kind of digital economy.

8. Community Driven:

   • The network grows and gets stronger as more people set up hotspots, creating a community-driven network.

My mind was blown. Helium seemed like a prime example of this new wave of decentralized ecosystems. It's like a modern-day tech revolution where the traditional rules of operation are being rewritten.

“Helium is not just a company.” He continued. “It's an entire network for Internet of Things (IoT) devices, but it operates completely differently from what we're used to. Instead of a big corporation owning all the infrastructure Helium relies on individuals like you and me to provide the network coverage. By doing things this way, Helium cuts out middlemen and bureaucracy, thus cutting costs.”

“But Sam, what about this HNT token. Why does that come into play? Why not just pay the user in US Dollars? Why crypto at all?”

"Ah, that's a great question. The use of HNT, the Helium token, instead of traditional currency like US Dollars, is central to how the Helium network operates. There are a few key reasons why crypto, specifically HNT, is used:

1. Decentralization: One of Helium's core principles is decentralization. Using a cryptocurrency like HNT aligns with this principle. When you use traditional currency, you rely on central financial institutions. With HNT, transactions are decentralized, aligning with the ethos of the network.

2. Global Accessibility: Helium is a global network. Using a cryptocurrency allows users from anywhere in the world to participate without the need for currency conversions or dealing with different banking systems. It simplifies the process and makes it more inclusive.

3. Microtransactions and Lower Fees: The Helium network often deals with small transactions for providing network coverage. Handling these as microtransactions is more efficient and cost-effective with cryptocurrency due to lower transaction fees compared to traditional banking systems.

4. Incentivization and Network Growth: Paying users in HNT creates an incentive structure that encourages more people to join and contribute to the network. As more people set up hotspots, the network becomes stronger and more valuable, which can, in turn, increase the value of HNT.

5. Security and Transparency: Cryptocurrencies offer a high level of security and transparency. Transactions on the blockchain are secure and easily verifiable, which is crucial for maintaining trust in the network.

6. Future-Proofing: By using HNT, Helium is also future-proofing itself. As the world moves increasingly towards digital and decentralized currencies, Helium is already aligned with this trend.”

“Hmm…” I thought. “So, while paying in US Dollars might seem simpler, using HNT aligns with the decentralized, global, and innovative nature of the Helium network. It's not just about the payment; it's about being part of a new ecosystem that challenges and changes how traditional systems operate.”

“That’s right.” Sam replied.

“Frankly, using crypto is just easier. And most projects design their own coin instead of using Bitcoin or something so that they can tailor it specifically for their needs. The traditional banking system simply isn’t the right tool for these decentralized entities like Helium.”

“Remember, Chris. Helium is just one example of this new frontier. There are hundreds of other decentralized entities out there with other use cases and purposes. You can participate in those too by owning the projects token and in various other ways. The world is changing, and this is the future of how things will work. It’s just plain better.”

“Click.” We hung up the phone and I sat there in silence.

I had no idea that cryptocurrencies and their projects not only had real value, but that there was an entire universe of them forming right beneath the public’s nose. We as humans tend to think that because things have been a certain way for a long time, they are simply going to stay that way. Often, we’re wrong.

Most people would agree that the financial system is ancient and needs to change. What they don’t realize is that this change is already happening, and it's happening through the world of cryptocurrencies and blockchain technology.

These digital currencies and the technology behind them are challenging the traditional financial systems that have been in place for centuries. Cryptocurrencies are not just a form of digital money; they represent a fundamental shift in how we think about and handle financial transactions.

The beauty of these decentralized systems is that they are open to anyone, anywhere. You don't need to go through a bank or a government to use them. They're creating a more inclusive financial world where transactions are faster, cheaper, and more secure due to the underlying blockchain technology.

Moreover, it's not just about the currency aspect. Blockchain, the technology behind these cryptocurrencies, has potential uses far beyond just transactions. It can be used for secure and transparent voting systems, supply chain management, digital identities, casinos, and much more.

Conclusion

What I’ve learned over these past 2.5 years of research is that blockchain, crypto and decentralized entities and their products are better, faster, cheaper, and soon, will be easier to use than traditional means. Beneath the surface, there's a quiet revolution taking place. A revolution that's redefining what money is, how we use it, and who has control over it.

This revolution will succeed. The reasons are simple:

1. It’s a better mousetrap. Blockchain and crypto are more efficient and can help companies cut costs. Companies want to cut costs, and will use this technology to do so.

2. The solution is global. No one government can shut it down. If one tries, the talent and money will migrate to friendlier jurisdictions. Regulatory Arbitrage.

Inflation is running rampant on centralized currencies all over the globe. The toothpaste is out of the tube… and those in charge do not know how to put it back in. Even though they pretend they do.

It’s become riskier to NOT own crypto than it is to own it. You need to hedge your portfolio with something that is not part of the traditional financial system.

And eventually, you will. Everyone will. The only question is this: will you be early, or late?

Thank you for reading Make Crypto Simple.

Sincerely,

Chris Schawel


^{The content provided in this newsletter is for entertainment purposes only and should not be construed as financial advice. All information, including but not limited to market analysis, price predictions, and investment strategies, is purely speculative in nature. We strongly recommend conducting your own research and consulting with a qualified financial advisor before making any investment decisions. We are not responsible for any losses incurred as a result of the information presented in this newsletter.}