 Today, I want to talk about why basically every kind of cryptocurrency is a scam now. Well, maybe I shouldn't say scam That's a little melodramatic But basically all cryptocurrencies even if they have millions of dollars in their market cap lots and lots of people investing in them They're probably all garbage. They're not fully thought through at a very basic level. Let me explain why okay now I have cryptocurrency. I have very few of them I don't have that you know, I don't diversify because most of it is crap, but I want to explain my metric Okay, now here's the thing about Bitcoin Bitcoin A lot of people focus on like the digital scarcity aspect of Bitcoin. Okay, because that's the point like you know You have this blockchain And it allows you to have scarcity in a digital domain You just can't copy and paste bitcoins so you can actually build a monetary system on top of it Okay, now we can talk about the specific traits of Bitcoin what it does right what it does wrong in another video That's not what I'm talking about But here is the nice that the really nice thing about Bitcoin. It is a self-propelling system. Okay the miners have incentive to mine and Secure the network and increase the hash power And people who have the coin of course since there is guaranteed scarcity They can use it for different things. It is it's it's on one hand It's a perfectly designed system to keep itself going You don't need like some agency monitoring Bitcoin In fact, the other benefit of that is because you don't have a single agency that has to monitor Bitcoin Bitcoin also is pretty hard to regulate. I mean you can crack down on mining You can say it's illegal. You can say it's illegal for a company to accept Bitcoin But the protocol itself is not censorable and you can't come for Bitcoin people, right? You can't come for I mean, what are you gonna do like? You know go to the individual developers houses. Maybe you could do that, but you know over the internet I mean if there's not like Bitcoin code There's not not like Bitcoin ink that you can come for and prosecute. Okay So that is one of the nice things about Bitcoin that people don't realize it's a decentralized There's not a some there's not like a single company controlling it all now you can debate Oh, it has blockstream taken over too much, but that that's another thing That's not necessarily a part of Bitcoin. Now here's my problem with basically every altcoin. Okay What altcoins? I mean most of the time they are not really I mean, it's not about the coin It's not even about the technology. It often is just about the company. Okay, instead of being decentralized like Bitcoin A company says, oh well, we need to fund ourselves So here's what we'll do We'll use a blockchain and we'll shoehorn it in our project project for some reason But the reason we want that it's a solution looking for a problem And they want this solution because it allows them to have a cryptocurrency and that is a great way for crowdfunding Okay, so what ends up happening? Well Bitcoin is this Decentralized network that doesn't have a single ruler and is self-propelling. You don't have to incentivize people to use it basically every Most all altcoins they are really managed by a company and they're incomplete in a way That is while Bitcoin, you know that the innovation of Bitcoin is that it's this system that you don't have to Incentivize people to keep like it has the incentives built into it the game. Theoretics of it are totally Like thought out. Okay miners are gonna do this They're gonna get that the mining rewards and transaction fees incentivize them to mine Everything works. You don't really have to have some company managing things But when you look at a lot of these other projects in the cryptocurrency sphere, they're not like that They they have a token that sort of does something in some system that they're really just using so they can have the token and Basically crowdfund because you know a lot of people want to get rich But when it comes down to it the company ends up making all the decisions They have a massive pre-mine that they give out to people when they do stuff They want. Oh, well, we're not actually gonna design a system like Bitcoin that's self propelling. We want to propel things We want to be in control. We're gonna give you some of our pre-mine. You know our ICO we are going to um We're gonna have dev taxes, you know, we're gonna get money from every transaction and we're gonna use things like that Now firstly that is so Ridiculous and self-serving like I don't know like when you see a coin that has like a pre-mine or like a dev tax Like I'm I don't know why anyone buys them because I mean to think about Bitcoin for a second Okay, what would you pay with like how much could you make if you could go back? You know ten years in time in work on Bitcoin when it was first, you know Get like be able to put five dollars in Bitcoin, right and buy, you know tens of thousands of bitcoins That would be a great thing like being at a base level of a technology like that That is so financially rewarding just in itself So why additionally do all these other projects feel like they need if they're if their thing is so good And it's gonna be the next big thing. Why do they feel the need to have all of these? Coin offerings and you know, they start with all this money and they get all these dev taxes Why do they really feel like that? It's because a lot of these projects. They're not fully thought out like Bitcoin Okay, they're not really self-propelling or they're unfinished. They're like well We still really don't know how this works, so we're gonna have to spell it out later So we're gonna need some professional developers who work on this and that right so that's that's I guess the big issue now Bitcoin has lots of flaws and I've talked about many of the flaws of Bitcoin In other videos and I will continue to talk about them like there are many tweaks you can make to it But the nice thing about Bitcoin actually, it's hard to make tweaks in Bitcoin because you have to do hard forks and stuff like that That's actually not the case in all these other cryptocurrencies because they're they have basically unfinished projects They're really just managed by a company. Okay They throw out words like decentralized all the time. Yeah, sure blockchains could be decentralized But it doesn't mean what they're selling what it's what you know what you're really it doesn't mean the product itself is actually decentralized So I think it's it's pretty cheap now. You guys know I I use Monero I'm a Monero person and Monero is that actually preserves that that the goodness of Bitcoin It still has it doesn't put on any junky stuff on top of that. So it's nice and simple I don't like other currencies or you know, even projects that aren't supposed to be currencies They're just supposed to be you know cash grab tokens on some kind of Network that isn't even necessary But here's my here's my thought about it Okay, when if you are developing a cryptocurrency project or not even a currency project I should should say like, you know, not if you're making a currency Just you want to use a blockchain genuinely and you want to establish a protocol for the internet to use The thing to remember is that you are not going to be a permanent fixture of the internet Okay, you can't be too greedy and I say this because there are a lot of projects out there Let's say projects that you know, I don't know I I wouldn't say I'm involved in but you know, I have a stake in right? So everyone on the internet has a stake in like the bat project Okay, because you know a lot of people who use the brain brave browser They can give you the little their little fake bat internet money So that's a good example because that is one of these projects that still has I mean It's still basically a centralized project and they are lead they want to become this internet standard But they're what they're really saying in that is that we want to be able to control this aspect of the internet and you know get You know what like 30% of this to you know of the income from this or something like that And that's just absurd when another project comes up that does the same thing in a decentralized way that You know the the people who designed it. They're they're not doing more of a cash grab They're not just doing it because they want to have a company make a bajillion adult bajillion dollars They're gonna win out and it's actually pretty similar to the distinction between Proprietary and free software for decades people thought that proprietary software is just a way to go How are you gonna make money? How am I gonna pay my developers? Oh my goodness? It's impossible when out everything even companies who write proprietary software are open sourcing things Okay, they're having like random people able to commit to them and and make changes to their Repositories and stuff like that and that's because that's just the better way of developing in the first place It you you will probably make less money. Yes, but open-source technology in the same way that Decentralized cryptocurrency projects are much more likely to become the layer that other people are gonna base things on in the internet That's just how it is. Why? Why would you take some crappy for proprietary? centralized Crypto project and you know permanently stake your own project on that. That's that's stupid. Why would you do that? You'd rather have a project that is, you know, truly self-propelling, okay? Now one example that you know another thing that people have this a stake in is the library project and this is a perfect example Okay, now if you don't know the library project, you know, they have this site odyssey.com That's odyssey.com Which is it's supposed to be like a video site where you know, you can host videos and the The the metadata is stored on the blockchain and it's all done through torrents So it's supposed to be an uncensurable video site. Okay, even though the front-ends like odyssey.com They're actually censorable, but that's another story you have to look into it The problem I have again with these kind of projects is they're centrally managed by one company and you can say Oh well someone else could use our blockchain, but okay your organization the library organization or whatever I forget exactly, you know, who does it but you know, they have this massive pre coin of this You know coin that is supposed to be used on the network and stuff like that So it's not really a fair comparison. You know what I mean? What would be and the other I guess annoying thing about projects like that is that like there are all these incentives that you need to provide for people like They need to have an incentive to host videos. They need to have an incentive Of course mining is is not a difficult thing to do because everyone knows mining Bitcoin figured that out and every other project Is doing it like how you can incentivize people to secure the network, but you know in the case of library You know, is there really an incentive for people to host their own video site monetary incentive? Okay? That's not really clear No one else has done it in all of library's existence, and I don't think it would be a fair competition if it were So what I'm trying to say is if you actually wanted a protocol that's gonna work You really have to have something that's totally decentralized. There's no CEO. There's no company Oh, and the the reason I brought up library in particular, you know that I forgot while I was explaining it is that they recently were Attacked by the SEC they said oh well your cryptocurrency because you gave it out or something like that because it's an Ico That's a security so we're gonna regulate you like that now if this were a truly decentralized now I'm not you know victim blaming library here because I think it's you know total nonsense the lawsuit It's just unjustifiable. However, if they had made a truly decentralized network, there would be no There would be no company to you know wage lawfare against that is that's the issue I think people in the cryptocurrency sphere, they're still making projects for their own profit They're not making projects because they you know They see this as the future of the internet and you have to remember Bitcoin I mean Satoshi Nakamoto. He might be the world's you know, richest trillionaire if he's not dead But you know, this was ultimately Bitcoin was ultimately a hobbyist project to be you know It's it wasn't a cash grab. It was let's create this for the internet. Okay, and that's why it worked That's why it works so well And so all these other projects coming out that just want to make money They're just centered around a personality or a project or a team and they're not really I Don't know like cryptocurrency is this great opportunity to have truly these a truly decentralized Internet and just like protocols to build all this stuff on and it's like people aren't really Getting the benefits from it. They're not really exploiting in the way that they should maybe these they just don't see it Maybe they're blinded by dollar signs. Maybe they just don't think it through. They're just like, oh, well I have a blockchain therefore. I'm decentralized That's not enough, but I think if you do this right If it's done, right? There are a lot of people who can build clever incentive systems clever tokenomics to have Systems that are self-propelling continue themselves and the internet can do stuff like host videos and host websites And all this kind of stuff without having some company manage it all. Okay, that's that's the point Okay. All right, that's all I have to say here