Thread on Вîtсоïn - economic/stonk value and why the outrage:

Not investment advice.

Firstly, what are сrурtocurrencies? Let's look at normal currencies first. A currency is something you hold to exchange for other things, a store of value.

Unlike goods, which you use for some purpose, or financial instruments you expect cash flows from, a currency has no value except in exchange for something else.

Think of dollars - they're just a piece of paper that we've all agreed on is worth about a cheeseburger.

The big difference is that сrурtocurrencies have no economic backing - the value of a dollar is backed by the US govt and the entirety of the US economy, so there are things of actual value behind it. Most сrурto has nothing like that.

What does this mean? It means that the price of сrурto is 99% driven by popular demand and meme value and can basically do whatever it wants.

Note: gold also doesn't have enough value (i.e. Industrial demand) behind it, but we use it as a store of value witha fairly stable price. The fact that it's a physical item you have to hold, along with other factors, keeps its price reasonable.

Why is сrурto questionable? These are my opinions only.

Each transaction of Вîtсоïn is verified by complicated math,but you need someone to do it. So, if you're the one doing math, you might randomly get some coin. This is called mining.

So many people like the idea of "free money" that they end up mining a lot - this uses more electricity than some European countries and is bas for the environment.

Further, the complicated math means that transactions are anonymous and very hard to trace, so it's easier to use

сrурto for crime.

Finally, if you want to trade сrурto, you have to basically give yours to the exchange and some exchanges have just... Run away with people's coin.

Finally, why can those сrурto promotion accounts be harmful?

Firstly, because the price of Вîtсоïn is driven mostly by demand, if you own some and convince another person to buy, your coin is now worth more. So advertising coin is just... Free money to you.

Secondly, mining might be inefficient, but if you can get other people to do it for you - again, free money. So those accs might give you links to sites that trick your computer into doing work for them.

Thirdly, accs like that have been known to scam people for their data and sell it on to other scams or just advertising.

Last and probably least, giving those accs views and follows gives them ad money for no benefit to you.