The Power Of Cryptocurrency


Hey there, guys. Welcome to another PIVX Class. I think I have a really
fun episode for us today. All the videos up until now have
been tutorials and introductions. I’m told a lot of newcomers
find this pretty helpful, but there is a lot more
to crypto than just tech. There is a kind of purpose
to it all, and I think that’s what we should
talk about today. Because in my opinion it’s
really freaking cool. You should know why these aren’t just stocks
being traded around to make people money. So without further ado, let’s talk about
what cryptocurrencies can really do. We know that cryptocurrencies like Bitcoin
and PIVX are intended to be used as money. But that is just the tip of the iceberg. The various forms of cryptocurrency that
exist are all essentially different methods of storing and using data. This can be used to run a currency, but
almost anything can be put on a blockchain. Which leads us to a common beginner
misconception about cryptocurrency. Not all cryptocurrency is currency. In the end cryptocurrency
is kind of a generic name. It would probably be more accurate to
just call it blockchain technology. The amount of stuff you can do
with the blockchain is staggering. I think maybe we’ll start with the biggest
name in cryptocurrency next to Bitcoin. Ethereum. I would wager my left that most people who
saw one of Ethereum’s ads on social media never knew that Ethereum
wasn’t just another Bitcoin. Most of the ads I saw were just about how
the growth of Ethereum on the charts was almost vertical at the time. Sure you can treat it as money
and buy and sell things with it, but Ethereum isn’t really
aiming to be money. Ether, a unit of Ethereum, is usually
referred to as a form of gas. This gas is used to facilitate the Ethereum
network where the blockchain is used to carry out activities
such as smart contracts. A smart contract is a form of digital
agreement that two parties could make. You can agree to exchange
something for something else. And the contract is only valid if both
parties fulfill their side of the agreement. Essentially, each smart contract must consume
a little bit of Ether as gas to fuel itself. What is truly magical about all of this
is that this Ethereum platform is so powerful that many other
cryptocurrencies are built on top of it. These cryptocurrencies are usually referred
to as tokens as opposed to currencies. There are hundreds of them out there. Most run on the Ethereum blockchain, but there
are others that run on other blockchains. These tokens do some
of the coolest stuff. Why don’t we go over a few of them
because they might just blow your mind. Disclaimer: I’m not going to name most of these
tokens as I have investments in certain ones and this channel is
not for investment advice. There’s usually more than one organization
doing their own take on each of these ideas. To begin with there are tokens out
there that strive to create a new way to invest in real estate. Buying their tokens is essentially
buying a share of a property. Their platform essentially offers new
ways to handle real estate investment as well as rentals. The ultimate goal being that it will make the
entire real estate sector more accessible by the masses since you don’t
have to buy huge chunks at a time or pay large fees on your purchase. Imagine you are renting a property
that you can see is well maintained and clearly profitable. You can then choose to buy a
small portion of your own home and effectively be paying
yourself with your rent. And that’s on top of the inflation
of this well run property’s value. Personally, I would like that deal. Another truly mind-blowing project that
is already out there getting stuff done is decentralized supercomputing. Allowing anyone to buy and sell computing
power on the network in exchange for tokens. This means you can rent the
power of a supercomputer online to process anything you want. I actually don’t hold anything in this field,
but I really love that it is a proof that just about anything can be done
with this technology. You can be running high intensity
simulations for scientific research, or rendering CGI on a massive scale. All while never having
to buy the hardware. There has been programs to do
this kind of thing in the past, but this is a whole new way to
organize and revolutionize this idea. It’s really pushing the envelope, and
again, it’s super freaking cool. I want to talk about one more token out
there that kind of requires you to look past the surface. I’m even going to name this one,
and yes I do have some of these. This cryptocurrency is
called CryptoKitties. No joke. It is a very simple online game. Essentially, you have these cats and
you can breed and trade them around. Each cat is its own unique token. That makes it an asset permanently
recorded on the blockchain. There are people trading these tokens,
these cats around in exchange for Ether, and they they also pay small amounts
of Ether to pay for the transaction. The game is as basic as they come,
the cats are just quirky images that are determined by the
characteristics of its parents. All you can do is trade and breed them. It is essentially trading baseball cards. They don’t really do anything. There’s no in-depth interaction. But people like to collect them. This was a complete first, though. It is a game entirely
built on the blockchain. This means that with
more development a whole host of games can
be built like this one. Games that are far more in depth
and far more complicated. Now I realize that many viewers watching
this are are probably not gamers. But our world is drifting deeper
and deeper into the digital space. More and more of us spend countless
hours on games, on social media, watching online video content. The economy associated with
that is just beginning. Things like CryptoKitties is just the
first steps in turning digital assets into being fully
tradeable and valued. There are already traditional video games that
have turned in-game items and real estate into something that is worth
sometimes thousands of dollars. However, they are usually really awkward and
clunky to get in and out of financially. Integrating blockchain technology
means that these assets can be made freely tradeable between
games and other means. There are stand-alone non-Ethereum
projects that are aiming to become the in-game currency
of video games. All that in-game gold or rupees or ISK
would be replaced by a cryptocurrency that can be sent to other games
or to the market to be sold. Players spending hours every day on their
favorite game can actually accrue a currency that has some value
in the real world because it can be used to buy things
in the game or any other game. This is all a big, long way of saying
that the currency of a video game can be made a real
cryptocurrency, and the assets within that
game can be tokenized. Making the game’s economy
powered by the blockchain, and making all of it
have real world value. Gamer or not, that is
some revolutionary stuff. I think that’s enough
examples for today. The goal was to get you thinking about
how cryptocurrency can change the world from head to toe. So why don’t we instead shift
to a thought experiment? The gaming example showed that crypto
can be used to record the existence and ownership of
just about anything. So why don’t we think about
where that can be applied? Obviously, not everything will
be particularly easy to do, but let your mind wander. Maybe you can think of
a car sharing scheme, or how to have a stake in an
online content creator’s channel. I don’t know what wonderful
things your mind can think up, but hundreds of blockchain
ideas have been invented already, and there are probably
thousands more to come. So have at it. If you write about it
in the comments below, I’ll be sure to reply and throw
in my two cents on the idea. Obviously, I’m quite the
dreamer so it’ll be a blast. Also, on the note of comments,
I get comments in the Discord, I’ve gotten some private messages
about what people want to see next. But I’d really like to see you guys
post in the comments in YouTube for what you’d like to see next. It’s hard for me to know what topics
people would like to learn more about in particular without
these kinds of comments. In YouTube I get to see
how much a comment like, “I don’t understand Proof of Stake,” gets up-voted and
then I can say, “Okay, next week we’ll talk
about Proof of Stake.” So yeah, cryptocurrency dreaming
and what you’d like to see next. That’s all for today, guys. Thanks for tuning in, and I
will see you in the next class.

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