Posted on 12/08/2022 11:00:20 AM PST by sodpoodle
I haven't invested in crypto currency because I don't understand how it works. Now after reading this I understand.
How Crypto Currency works... an analogy in Layman's terms.
Not long ago a merchant found a lot of monkeys that lived near a certain Village. One day he came to the Village saying he wanted to buy these monkeys!
He announced that he would buy the monkeys at $100 each. The villagers thought that this man must be crazy - How can somebody buy stray monkeys at $100 each? Still some people caught some monkeys and gave it to this merchant and he gave $100 for each monkey. This news spread like wildfire and people caught monkeys and sold them to the merchant.
After a few days, the merchant announced that he will buy monkeys at $200 each. The lazy villagers also ran around to catch the remaining monkeys! They sold the remaining monkeys at $200 each.
The merchant then announced that he will buy monkeys for $500 each! The villagers start to lose sleep!.....They caught six or seven monkeys, which was all that was left and got $500 each.
The villagers were waiting anxiously for the next announcement. Then the merchant announced that he is going on Holiday for a week, but when he returns, he will buy monkeys at $1,000 each! He also said that his employee will be in charge, and would take care of the monkeys he bought pending his return. The Merchant went on holiday!
The Villagers were frantic and very sad as there were no more monkeys left for them to sell it at $1000 each as was promised by the Merchant. Then the Merchant's Employee contacted them and told them that he would secretly sell them some monkeys at $700 each. The news spread like wildfire. As the Merchant promised on his return that he would buy monkeys at $1000 each, they would achieve a $300 profit for each monkey.
The next day The Villagers queued up near the Monkey Cage. The Employee sold all the monkeys at $700 each. The Rich bought monkeys in large lots The poor borrowed money from money lenders and bought the rest of the monkeys!
The Villagers took care of their monkeys & waited for the Merchant to return! However nobody came ! ..... Then they ran to Find the Employee....However he was not to be found!
The Villagers then realized that they have been duped buying the useless Stray monkeys at $700 each, and were now unable to sell them!
This Monkey Business is now known as Bitcoin!
The best way to make a small fortune in Cyptocoins is to start with a large one.
Think of A ponzi scheme. That’s how it works. đ
Hey, it’s humor. Maybe a New Yorker like yourself can understand.
Once upon a time guy was taking the backroads and stopped at a local store. He was startled to find a tin of very rare sardines. He bought the tin for $5 and when he got back to the city and people learned about the sardines, he sold the tin for $20.
The person who bought it kept it for a few weeks and eventually tripled his money. The price went higher and higher until a person paid $100 for the tin of sardines. After a few months he took it to an auction house for rare treasures and it sold for $1000. The person who bought it was very wealthy and had a party where he opened the tin.
A number of the people who had purchased the sardines along the way were present at the opening. And to everyoneâs dismay the sardines were rotten. When the wealthy fellow raised heck with the auction house, they told him he should have known better and told himâŚThose were âinvestingâ sardines and not âeatingâ sardines.
I saw a report the other day that indicated over 80% of all crypto investors have lost money on their investments. The number is obviously still going up daily. So I guess thatâs how crypto âworks.â
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