Make Crypto Simple

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Welcome to the curious world of crypto, where fortunes can be made overnight and the concept of "value" feels like it's been flipped on its head.

Imagine explaining to your great-grandfather that today, we're trading invisible coins stored in digital wallets on something called the blockchain. Sounds like a plot from a sci-fi novel, right? But the value in crypto isn't just a collective hallucination—it's as real as the dollars and cents jingling in your pocket.

At its core, "value" is an agreement among people about what has worth. Traditional currencies, like the dollar or euro, carry value because we trust that others will accept them as payment. This trust is often backed by governments or historical precedence.

Crypto takes this idea and runs with it—into cyberspace. Unlike fiat currencies, most cryptos aren't backed by a tangible asset or government decree. Instead, their value comes from the principles of supply and demand, combined with the trust and utility they offer in the digital world.

🏗️ Building Blocks of Crypto Value

• Scarcity: Ever tried collecting something rare? The less there is of it, the more valuable it becomes. Bitcoin, for instance, is the poster child for digital scarcity. With a cap of only 21 million coins that can ever exist, its built-in scarcity mirrors precious metals like gold, offering a digital way to hedge against inflation and currency devaluation.

• Utility: Think of cryptocurrencies as Swiss Army knives; each one has its unique set of tools. Bitcoin offers a secure and global money system. Ethereum takes it further, allowing developers to build smart contracts and decentralized apps on its platform. Other alt-coins have niches in their own right. This utility—what you can actually do with the crypto—adds layers of value.

• Decentralization: There's a certain allure to the idea of money that's free from the whims of governments and central banks. Cryptocurrencies operate on decentralized networks, distributing power among their users. This not only makes them harder to censor or control but also introduces a level of security and transparency that traditional financial systems struggle to match.

• Community and Network Effects: Ever noticed how a deserted restaurant tends to stay empty, while a crowded one attracts even more customers? That's the network effect in action, and it's a powerful value driver in the crypto world. The more people use and support a cryptocurrency, the more valuable it becomes. Community enthusiasm, development activity, and adoption rates can all skyrocket a crypto's value, making it more than just a token—it's part of a thriving ecosystem.

What? You’re not getting involved? You should be. Let me do the research for you.

🔍 Value Vs. Price: The Essentials

• Price: What you see on trading platforms; highly volatile and influenced by market trends.

• Value: The underlying worth based on technology, utility, and potential; more stable and fundamental.

• Think of price as the surface wave and value as the ocean depth—both part of the same sea but with different characteristics.

💡 The Speculation Effect

• Speculation: Adds volatility, driving prices up or down rapidly, akin to a roller coaster ride.

• Impact: Can lead to bubbles by inflating prices beyond intrinsic value.

• Key takeaway: Speculation is a double-edged sword, providing both opportunities and risks in the crypto market.

🌐 Real-World Crypto Uses

• Money Transfers: Secure and fast global transactions.

• DeFi: Loans, borrowing, and earning interest without traditional banks.

• Tokenization: Making ownership of assets like art and real estate more accessible.

• Real Impact: These applications showcase crypto's practical value beyond trading.

• Real Revenue: Many crypto projects generate real revenue, just like a traditional company would.

🧠 Psychology in Play

• FOMO: Fear of missing out can lead to buying frenzies.

• Media Influence: News can trigger market reactions, both positive and negative.

• Investor Sentiment: Overall mood can greatly affect market dynamics.

• Strategy: Recognizing these factors can help navigate the emotional roller coaster of crypto investing.

🤖 Tech Spotlight: Smart Contracts

• How They Work: Automated contracts that execute when conditions are met, like a vending machine for transactions.

• Use Cases: Foundation of DeFi, enabling automated loans, insurance, and more without intermediaries.

• The Big Deal: They're revolutionizing not just finance but any sector relying on contracts, showcasing crypto's innovative potential.

Your Takeaway

Crypto has value for the same reason anything else does: people want it. It doesn’t have to be more complicated than that. Do your research into each project like so:

• Find out why someone would want to own a specific coin.

• Find out how many coins there are, and where they are, and where they’ll be.

• Find out how much the project is worth (market cap), and compare it to the potential amount of people that would want that coin, but just don’t know it yet.

Do this research and you’ll find undervalued projects Crypto is home to an abundance of opportunity. Discover the right ones, and you’ll make life-changing money.

🚨 Action Items 🚨

Bitcoin is a hedge against government manipulation of currency.

I guarantee that many of you reading this have all of your assets in the current system. You need to get some money outside. Hedge your bets.

If you’re at all concerned about inflation and government control of currency, you need to:

• Educate yourself about crypto and Bitcoin. Free resources HERE.

• Add Bitcoin or other cryptocurrency to your portfolio. Want free, 1-on-1 help? Click HERE and use code: CRYPTOISCOOL for a free Gold Package Crypto Crash Course.

Dont hesitate any longer. Money is changing… and you do not want to be late.

Reply to this email with a question about crypto! I read and answer every single message.

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.}