What’s up, this is a Tai Zen and I’m sitting here with my Indian driver and I’m broadcasting from the midtown area of Atlanta. In this video, I want to talk to you and explain to you what is a Cryptocurrency bucket or a Crypto bucket so you can understand this and it and will help you make a better decision when you are investing in the Cryptocurrencies.
You have heard me say this before in the previous video, but in this video, I want to make it specific so that you can understand. There are different types of Cryptocurrencies and on the surface, they look like they are different. When you do the research and you look at it, the problem or that the goal that they are trying to solve is very similar.
I’m going to give you a few examples so that you understand what a Cryptocurrency bucket or a Crypto bucket is. For example, there are groups of people trying to make smart contracts on the blockchain. For example, Bitcoin has what’s called a dumb contract system where it’s all their transactions are either pretty much black and white, yes or no.
A dumb blockchain is something that if A happens then do B or B happens, do C. Right now it doesn’t, in the future, they’ll probably make it so that it’s a smart contract so there are conditional statements in there.
For example a smart contract or a smart blockchain such as the Ethereum blockchain, that’s considered a smart blockchain or a smart Cryptocurrency because it allows people to create conditional statements on their program, the blockchain or create software they can program it where they can say hey if A happens do B, if B happens do C or if X happens do Y.
That’s what the DAO Hub and the Augur project and the Akasha project, everything that’s built on top of the Ethereum network, they rely on the fact that you can create conditional statements in their software, and the Ethereum blockchain will execute those conditions when they arise.
Unfortunately, during the DAO hub when they created that was supposed to be a software that was supposed to collect money, raise money and then distribute it based on the community vote to future projects to build software on top of the Ethereum blockchain. There was a bug in there where the DAO attacker came in and wrote some software and was able to take advantage of that bug.
So that’s how the DAO attack happened. So that’s the danger that you have when you invest in a smart blockchain like Ethereum. So in the bucket of smart blockchains, you have first of all is the Ethereum Classic, which is the original first to the market blockchain that has the smart contract capacity or the ability to do conditional statements on there.
So if you listen to this and you are technical if I get this wrong don’t jump on my ass about it. I’m trying to make it so that it’s a non-technical explanation for the people are just getting into Cryptocurrencies.
I’m sure there’s more technical stuff that goes behind it, I’m just trying to make it simple by differentiating that is a dumb blockchain or smart blocking just so that people that are new to understand it. So in the bucket of smart blockchain and smart contracts, you got the Ethereum Classic which is the original one that was the first blockchain that came to the market that allowed people to program stuff with conditional statements in there.
The second one that I know about is the expanse. So there another blockchain that also allows people to write smart contracts or smart applications or allows people to make conditional statements in their software on top of it.
And now since July 20th, we have another one added to the bucket of smart blockchain, and that’s the Ethereum Hard Fork. So the Ethereum Hard Fork arose from the Ethereum Classic chain, they fought off to the side so that they can return the money to back to the DAO investors.
Now some people like to say that that’s the original blockchain but that’s hard for me to argue that or to support that statement because the original blockchain is the Ethereum Classic and I don’t want to get into the semantics here, it’s up to you which one you want to believe. But right now as of right now it says there’s a consensus among the community that the Ethereum blockchain that was not Fork is the original one and the Hard Fork Ethereum chain is the one that fought off to the side.
So which whenever you invest in, that’s up to you, I’m just explained to you at those blockchain or those Cryptocurrencies or they fall in the smart blockchain Crypto bucket because it allows people to program conditional statements in there. Now we have another Crypto bucket, that’s what I call the decentralized Crypto bucket or the decentralized storage bucket or the decentralized Dropbox bucket.
So many of you know that Dropbox, Google Drive, Amazon Storage, those places like that, those services right now they allow you to customers to upload data up to their centralized servers. So Google has server farms all over the world where you can their Google Drive where you can upload your photos your videos your documents up to and store it there for safety, they back it up on a regular basis.
So the likelihood that they are going to keep your content and your data safe is much higher than you probably can at home on your computer, especially if you are not technical. You’re technical and maybe you can do a better job but they do a pretty good job. I have stuff saved on Google Drive, I have stuff saved on Amazon S3 storage and I have stuff saved on Amazon Glacier storage.
So because of stuff like that, you’re relying on a third party to save it on what they call the cloud. And they call it the cloud because you can access that data from anywhere in the world as long as you have an internet connection to their servers. However Amazon controls their glacier storage, they control their S3 storage.
Google controls its servers that contain Google Drive. The other one that’s very popular is Dropbox, you can upload data content videos, photos, documents up to Dropbox and they store it up there also.
Now, there’s a Cryptocurrency bucket where it’s what I call the decentralized storage bucket or the decentralized Dropbox where people are storing their data. So we got the MaidSafe, which is probably the oldest one where they’ve been at it for 8 years now, they’re trying to build this decentralized storage base on the blockchain technology.
Then you have Siacoin and then you have Storagecoin. So there’s more but those are the 3 possibly more popular ones that the Cryptocurrency community recognizes. And that’s what I call the decentralized Dropbox bucket.
In the decentralized bucket, just so you know what they’re doing and instead of having a huge centralized server farm like Google or like Amazon, what they’re doing is they are attempting to get people to rent out their hard drive space on their computer. So let’s just say that I have a 1 terabyte solid-state drive in my laptop. So let’s say that I only use 50% of it, I got 500 gigs a solid-state drive that I’m not using.
Well, I can rent that space out to Maidsafe or to one of these places, to one of these decentralized storage Cryptocurrencies and they’ll pay me for renting out that space. So you have thousands and millions of people around the world renting out empty space on their computers while the people that own the computer like me we can make a small interest or a small income from renting out our storage space and then they that the network customers can store their data on my computer.
Now obviously that data is not going to be stored in a raw format, it’s going to be encrypted and can be compressed before it is sent over to my computer to be stored on there. So they’re working on that and they’re working through the security issues to make sure that it’s stored safely so that for example if you stored data on my computer that it does not infect my computer and that I don’t get to access that data easily.
So that’s how the decentralized storage Cryptocurrencies are working on. And again, Maidsafe, Siacoin and Storagecoin, that’s the second example of a Crypto bucket. The third bucket I want to share with you is the social the decentralized social media bucket, and this is a decentralized social media but it’s also decentralized social media slash blogger bucket and that’s buckets such as the Akasha project, it’s not out yet, it’s not available to be used yet.
And then you have something like Steemit.com and that falls under the decentralized social media bucket. And you might ask why would somebody get involved in social media? Why would they need to do that when you got Twitter, you got LinkedIn, you got Reddit, you got Facebook and you got all these other places? Well, those are not designed to be censorship proof and it’s centralized in 1 location with Facebook.
For example, Mark Zuckerberg has control of Facebook, so if he doesn’t like something you post on there, he has the authority to get rid of it block it and censor it. Whereas when you post something on the Akasha project once they come out with it, they haven’t come out with it so don’t waste time trying to post on there.
But like Steemit you can post on there and then the owners the developers who created, Dan and Ned who started the Steem blockchain, they cannot go in there and arbitrarily erase it from the blockchain the blog post that you put up there. Now they can create the user interface which is the Steemit.com, they can create their website which accesses the blockchain to block certain stuff that they don’t agree with, they can do that but the data that you post onto the blocking is still there.
So those are the 3 different types of buckets that Crypto buckets that I want to share with you. Now there are different ways to approach this. Now that I explained to you what a Crypto bucket is, there are several different approaches to investing in this.
One approach is to analyze each Cryptocurrency in each bucket and try to figure out which one is the best one and then load up on that one. So, for example, let’s take the decentralized storage bucket. Let’s say that you believe that Maidsafe or Siacoin or Storagecoin if you believe that one of those has the best chance of succeeding, you can load up on that one coin, that’s one approach.
So you’re taking the sniper investment approach by zeroing and aiming for one and you hope that that one’s going to hit. And if that’s the case then you get to put all your money, let’s say that you have 3 Bitcoins, if you have 3 Bitcoins to invest, you can put all 3 Bitcoins into that 1 decentralized coin that you want, that you believe in, that you’ve done your research and you believe this has the strongest probability to succeed and the market will use this when you put all 3 of your Bitcoins in there.
Now keep in mind I’m just using 3 Bitcoins as an example, I’m not telling you to put 3 Bitcoins in there so don’t come back and say you lost my whatever because Tai told me to put 3 Bitcoins because I’m just using that number as an Obit trade number just as an example.
Now the other approach instead of taking the sniper approach and aiming for one of them to succeed, you can take what I call the shotgun investing approach where you take those 3 Bitcoins and you put 1 in each of those Cryptocurrencies. So you put 1 Bitcoin to Maidsafe, you put 1 Bitcoin into Siacoin and 1 Bitcoin into Storagecoin.
And by doing so what you’ve done is that you’ve spread the risk out among 3 Cryptocurrencies and you don’t know which ones didn’t succeed, nobody knows. If everybody tells you that they know which one is going to succeed, they’re lying to you.
So if you take the shotgun approach just be aware that when you take that approach, you are going to spread your risk. The advantage of that is that you spread your risk among 3 different Cryptocurrencies instead of just 1 and the disadvantage of that is if the one that you picked out of those 3, one of them is going to make it big.
Let’s just say if Storagecoin makes it big and the market adopts that currency and that decentralized storage platform or that decentralized storage blockchain, then what’s going to happen is the other 2 are probably going to go downhill and so you lose the 1 Bitcoin that you have in the other 2 and you only make profits on that one that you have, and the profit that you make on is going to be obviously a little bit less than if you were to put 3 Bitcoin or all your money into it.
I personally don’t like to put all my money into one thing, I believe in spreading the risk because at the end of the day no matter how much you see me blog about any Cryptocurrency or anybody blog about their Cryptocurrency or talk about it, the reality is nobody knows. If somebody swears up and down that this is going to the moon, tell them to mortgage their house, get a loan against it, max out their credit cards and put their life savings on it.
So for example, I believe that the Cryptocurrency investing is the wave of the future, it’s the new asset class. So whenever people say that I’m stupid, I’m crazy, I believe in it so myself I put my entire life savings into it all of it. There’s not a penny of my savings outside of Cryptocurrencies because that’s how much and how strongly I believe into it.
If you believe in something just put your money where your mouth is at or what your beliefs are at. So obviously, it’s just like the Ethereum Classic chain. Like a lot of people that they believe that bullshit, I did too the first day that Poloniex listed it, I thought it was bullshit.
But then when I saw the trading activity, the metal volume that was being done, it changed my mind because as a trader and as a Cryptocurrency trader and a Cryptocurrency investor my goal is to make money from this and I can feed my family and take care of my wife and kids. Having a biased opinion, that does not make me money, does not help put food on the table and help pay rent and pay the mortgage and pay for the houses that we live in.
So because of that, I try to be flexible and as soon as I see things change, I try to adapt to the environment. But anyways I want to wrap it up and to share with you those 3 examples of what a Cryptocurrency bucket or Crypto bucket is so you know. And if you have any questions on it, give me a thumbs up, leave the questions in the comments section below.
If you don’t like it, give me a thumbs down and I put a link somewhere on my YouTube channel and my website Cryptocurrency.market and send it over to my Steemit account, at Steemit.com/atcryptomarket. So that’s our channel of that steam it and we’re doing some testing on there so we’re going to post our videos sometimes in there. If you get a chance, upvote it, so we can test out the Steemit network and report back to you.
So thanks for watching this video, I hope that this video that I explain about the different Cryptocurrency buckets will help you make a better decision in your investing. And I’ll see you in a future video.