out of all the people
the one guy you would never think will
get scammed is mark cuban
if you have ever watched shark tank you
know what kind of tough questions you
would ask
to figure out if that startup is a scam
or not but here in the crypto world
he fell for it cuban is one of the
world's most successful entrepreneurs
he built an empire worth 4.1 billion
dollars
in fact he made his fortune during the
dot-com bubble he
sold his startup to yahoo for 5.7
billion dollars
which was an overvalued company that
didn't worth its money
but he got away with billions of dollars
and you would expect him to be cautious
and smart but no
a crypto company that promised a few
hundred percent of returns
scammed cuban and ripped his money cuban
invested in titan
it's a cryptocurrency token that went
from sixty dollars
to zero dollars in just a few hours
prices fluctuate all the time in the
market
but this token was a rocket that
exploded in the middle of its way
and it was a matter of time before it
hits the ground
even gamestop shares didn't crash that
much in fact
gamestop is doing pretty good now just
imagine how much
interest the hedge funds are paying on
their borrowed stocks
another company from south africa that
was founded by two brothers
vanished from the face of the earth with
3.6 billion dollars of bitcoin
and there are hundreds if not thousands
of such examples
what people don't understand about
bitcoin is that the blockchain on which
bitcoin is based
might be super difficult to hack but
most of these
online wallets or online platforms or
new tokens that emerge out of nowhere
could be hacked or they could be just a
scam like the case with
south african brothers remember bit
connect
it claimed to be an open source
cryptocurrency that guaranteed investors
40 returns it seems pretty realistic
however bit connect unfortunately turned
out to be
a ponzi scheme that cost its investors
an incredible
3.5 billion dollars i don't feel sorry
for the people who fell for it because
you could say it's a scam by watching
just one of their ads
pincoin was another scam a vietnamese
cryptocurrency
that raised about a billion dollars from
32
000 investors instead of being paid back
in cash
investors were rewarded with new tokens
called ifan
before the team behind pincoin
disappeared alongside
all the invested money if you're not
convinced yet
then good luck does that mean bitcoin or
crypto in general is one big scam
or as peter steele calls it a chinese
financial weapon
to destroy the united states to answer
that question
we have to go back in history in 1962
an mit computer scientist lichter came
up with the idea for global computer
network
and three years later he with his team
successfully made two computers
communicate with each other in 1969
a student from stanford wanted to send a
message
login to another computer but the system
crashed because the message was
too big so he could only send l-o
it wasn't a big deal back then but it
was the beginning of a revolution
that will soon change the world you see
at the end of the day what is internet
have you
ever asked yourself this question it is
not a technology that
introduced something fundamentally new
it just made communication
faster and better take uber for example
taxis were a thing way before the
internet existed
but the internet made communication
between people who want to give a ride
for a financial reward and the people
who want a ride
more effective stopping every car in the
road to ask them
if they would give you a ride for a
certain amount of money
is dumb but when you're using uber
that's exactly what you're doing
but much much faster now wait a second
much much much faster
at some point in developing the internet
we'll realize that
why do we have to communicate the same
message over and over
where we can just store that information
in one place
and let everyone access it from there
take this video for example
it is stored in a data center when you
want to watch this video
a signal is sent from the data center
where this video is stored
to a cell tower via an optical fiber
network
and from the cell tower the signal
reaches your phone
through electromagnetic waves but if you
access the internet from a wifi
then your router is literally connected
to the global fiber network
the optical fiber network connects the
data centers
with cell towers and routers this
network is literally the backbone of the
internet
whenever you create a website upload a
video to youtube or a picture to
instagram
your device sends that picture in the
form of codes
to data centers then the data center
sends that message
to other people who are connected to the
internet
that's how the internet works in short
but before we got
into all of this back in the 1970s
all that internet could do is send
emails
and it wasn't clear how sending an email
could
fundamentally change the entire world
but as more people got involved and
learned how the internet works
they started testing different ideas
what if instead just
sending an email you could send an audio
or maybe a video
so beginning in the 1990s thousands of
companies emerged like
netscape yahoo amazon ebay
every company tried to take an existing
business model
and make it more effective since the
whole purpose of the internet
was to make communication faster
ebay connected sellers with buyers if
you want to sell your old tv
you could let the world know that you
want to sell your old tv
without leaving your house if you wanted
to buy a book you no longer had to go
to the bookstore because the bookstore
could be on your computer
as long as you had access to the
internet
the first email was sent by ray
tomlinson to himself in 1971
and it took us 21 years to be able to
send video and audio
via the internet and even after 20 years
of developing the internet
we still did not have youtube facebook
paypal or google
it took us 36 years from the time we
sent the first email
to creating a device that put the
internet in our pockets
but this revolution had its dark sides
as well
back in the 1990s people realized that
they could easily steal people's
sensitive information
such as credit card numbers social
security numbers or access
their computers by pretending to be the
bank
the irs or anyone with authority
scummers can empty victims bank accounts
take out tens of thousands of dollars in
bank loans
and their victims names and purchase
expensive
furniture or electronics under no
repayments for 12 months schemes
a lot of people handed their information
because back then
most people had no idea how the internet
works
that was just one part of this camp as
the internet became more mainstream
every business slashed.com then of its
name
making their stock price shoot through
the moon
does that remind you of something even
mark cuban sold a worthless company
broadcast.com for 5.7 billion dollars
which made him a billionaire but the
company went bankrupt
a few years later it kept happening
until everything crashed in the 2000s
and a lot of people lost faith in the
internet but people who
understood the underlying technology
behind it
understood how it could make the world a
better place
and that led to innovations such as
airbnb
uber google amazon youtube iphone
and so on and that's the perspective you
have to use to understand bitcoin
bitcoin could worth millions of dollars
or maybe
zero it's a mystery that only time will
tell
but judging blockchain based on bitcoin
is like saying that the internet is
yahoo back in the 1990s
the company that barely anyone knows
today we can already see how blockchain
is capable of changing the financial
industry
or the art industry through nfd's but
that's just one
tiny part because when you understand
how this technology works
you can see how you can apply to
everything else
the internet made communication faster
and more efficient
but blockchain makes that information
more trustable
and reliable at first glance it doesn't
seems helpful
how does making information trustable
could revolutionize the world
and that's the question early users of
the internet asked
how making communicating information
faster
could change the world to answer that
question
we have to understand how blockchain
works and how it could be
implemented in other industries besides
the financial industry
blockchain stores information in
chronological blocks
and when you make changes to any
information in these blocks
you don't change any of these blocks the
change is stored in a new block
a change to b at a specific date and
specific time in a new block
we have been using this technology for
centuries but we've been storing that
information first in books
and now in computers when it comes to
your credit card information
it is stored in the computers of your
bank that manages your transactions
when it comes to drugs that are sold in
pharmacies that information is only
stored
in that pharmacy and blockchain is that
technology
that provides a single version of the
truth
to all authorized parties blockchain
builds
trust in any data or information by
decentralizing it
and allowing everyone to interact
directly with each other
without the intermediaries it seems like
the next
natural step in the evolution of the
internet
every property in the world could be
stored in a blockchain
and there will not be any land disputes
again you no longer have to pay
fortunes to lawyers and go through
costly time-consuming disputes
over who owns this land there is
literally a war going on in the
courtrooms between companies
for intellectual properties every
intellectual
property could be recorded in blockchain
technology that can serve
as an indestructible digital ledger
marriages divorces supply chains
is entirely possible that the entire
world is going to be run
on the blockchain but only time will
tell how the final version
of this technology is going to look and
bitcoin
although it is the currency popularized
blockchain
it might not necessarily be the future
of this technology
that is speculation of course it could
be or it might not be
but when you look at its rivals such as
ethereum that's not just a currency but
an entire platform upon which could be
built
a blockchain for anything starting from
smart contracts to ledgers to record
intellectual property you start to
understand that
bitcoin is a tiny part of the blockchain
so when you think about crypto or
blockchain think outside the scope of
current popular cryptocurrencies
to see the wider picture of where this
technology is headed to
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