WEEKLY WHEATIES #2501
Crypto Scam, AI Improvements, Working Out
In this newsletter:
📝 Post: Is Crypto a Scam? Understanding Its Path to Adoption
🗞️ In Case You Missed It: AI Continues to Improve
😎 Pick of the Week: Working Out for Beginners
📦 Featured Product: Lisen Phone Mount
📝 Is Crypto a Scam? Understanding Its Path to Adoption
As Cryptocurrency talk has been more in the news lately, especially with Bitcoin breaking past $100,000, I’ve had a few discussions with friends and family members I’d like to share and flesh out. The question I was asked that started this was simply, “Is crypto a scam?” And the simple answer is: it could very well be argued that at its infancy it appeared as if it was, but utility and adoption have helped overshadow that argument. Please hear me out…
The counterargument I ask is, “Is the US dollar a scam?” While I know some people who believe it is, I would argue a scam requires the [owner] to attempt to defraud a person or group by providing a level of intentional dishonesty involved, along with the inability to provide a mutually beneficial exchange of goods or services. Your US dollars can be exchanged legally within the borders of our country and have the same value anywhere you go - regardless of their individual purchasing power. I promise this is not about the legality or chances the US dollar is a scam, only that cryptocurrency falls under the same premise - but has other features allowing it to stand as a potential replacement - or at least a supplemental method of currency or exchange of goods and services.
Yes, the value of cryptocurrencies has been proven to be volatile. However, many stocks in the market are, too, and both can be affected by outside forces as well as inside forces. Nothing we all don’t already know. A reason crypto can be more volatile than stocks is simply because of the major players involved, along with the currently argued under-regulation or potential of up-and-coming regulation.
There are two other ways I’d like to compare Cryptocurrency and Bitcoin to other things you are similar with. First, the US dollar as previously stated, but secondly, Ford vehicles. But you have to promise to give me some liberties as this is a one-way medium of communication (at least as a whole), and analogies can be difficult in this type of medium sometimes.
Starting specifically with the US Dollar bill and similar paper currencies. All tangible currencies across the globe are printed on some form or type of paper using something similar. This is now done through a process based on the invention of the printing press. However, let’s pretend that none of the paper currencies were created, developed, or used until after the printing press - at least at scale for the sake of this argument, along with other technologies and inventions (travel, electricity, etc).
In this scenario, the paper currency has a worth, but the printing press arguably has a much higher worth - in that it can continue to print more and more currency. Controlling the printing press essentially controls the amount of currency in circulation. Not only that but the printing press can also be used to invent and create other goods that require mass production of uniform printed material.
Now, let’s look at this another way through Ford vehicles. Before the early 1900s, there were other vehicles, but Ford quickly took over after inventing and integrating the assembly line. Here we are decades later; we now have hundreds of other brands all using their own version of the assembly line to build their vehicles. And just like the printing press, the assembly line is used for millions of products outside of vehicles.
While the production of currencies and vehicles is important, the methods that allowed them to scale have arguably more worth.
The same can be true of cryptocurrencies, and especially Bitcoin. They inherently have value just as all previous versions of bartering have. See The History of Paper Money for tons of examples over history. While we joke about the one Man who bought two pizzas 14 years ago with 10,000 Bitcoin, no one thought the value would be where it is today. Compare that to real estate, artwork, or even the guy who bought a lifetime pass from United Airlines for $290,000 in 1990.
Anyone who has ever had a business revolving around goods and services will tell you the same thing: Something is only worth what someone else is willing to pay. And for scale - what the market is willing to pay. While the value of Bitcoin has certainly risen astronomically over the last 5 years, the rise in value has seemingly come more from the integration of the blockchain rather than people or businesses buying the coin to actually spend somewhere.
The blockchain is the backend ledger for all cryptocurrency transactions. Quantum hackers could break bitcoin in minutes, but don't panic just yet. We’re still years away from systems capable of that type of power, and the Bitcoin blockchain can update to deter this threat. And to be clear, if a system that powerful is around to hack Bitcoin, it could typically hack any bank of your choosing quicker or easier. All systems capable of ‘hacking’ are only as strong as the weakest link in the chain. This is where I remind you of the power of security behind your usernames and passwords. Bitcoin technically has never been hacked. Although Cryptocurrency Exchanges have been. See the Biggest Heist Ever on Netflix for an example.
So, what does this security give us? Well, it allows the use of the blockchain to be used for things outside of typical currency transfers. Many things haven’t made it mainstream yet, but it’s in the background of a lot of transfers happening every day. This list of Applications and Real-World Use Cases includes: global product and food tracking; securing and storing medical records, land and other public records; facilitating property transfers; assisting in decentralizing networks; and much more.
When NFTs became popular throughout 2021, it could be argued that it was a scam and/or joke. Today, many of the expensive NFTs have lost a lot of their value, but again - the backend blockchain is where the value is. This was a great example of the utility of an NFT which was then converted in use to help track donations, real estate, and many other expensive or rare products like art, watches, or cars.
So, while you may argue Bitcoin was once a scam, I could argue there are millions of people and businesses using it today who exemplify its utility and, therefore - value.
🗞️ ICYMI: AI Continues to Improve
As mentioned before, AI (via text, audio, images, and video) continues to impress. For text, the test of passing the BAR and other standardized testing has long been passed be AI. Recently, Nature.com shared How AI is unlocking ancient texts — and could rewrite history. Audio and images have tricked millions of people if by proof by nothing else of how many social media posts are shared and viewed.
Video is close - if not there already. A typical fun ‘benchmark’ used for video includes a prompt showing Will Smith eating spaghetti. While the first version caused multiple memes, the second version was getting closer. A third version came out decent, but didn’t get the ‘Will look’ great - you could also tell it was AI. However, if I didn’t tell you this fourth version was AI, you’d probably think it was real (although the man in the video is not Will Smith).
All that said, remember: Generative AI is a subset of AI that autonomously creates the type of media and content listed above. However, when left to its own devices, it can make things up that are seemingly ridiculous (see: Google). Recently, Meta scrambled to delete its own AI accounts after backlash intensifies from their chatbots.
😎 POTW: Working Out for Beginners
With the new year, maybe you want to start working out? There are tons of apps that can help (I use HitFit to get new workout ideas), but sometimes just keeping it simple is best. Maybe you just track your steps, miles ran or biked, or days you closed your activity rings. However, before jumping in, consider visiting the Mayo Clinic’s site to see how fit you are. Then, consider testing your strength, balance, and mobility. Here’s a friendly post on How to Start Exercising, a YouTube video on helping You do pushups, along with a bunch more picks for those who may be starting out fresh:
Expert-Approved Guide to Working Out Post Hiatus (or for the First Time)
Experts Reveal Why You Shouldn't Do The Same Workout Everyday
This 10-minute walking workout is perfect if you want to boost your step count while staying indoors
📦 Featured Product
Recently, I purchased a Lisen phone mount for my vehicle, but it’s specific to a Tesla Model 3. However, this may work for other vehicles, as the mount can rotate and swivel. Alternatively, they offer a generic car mount that will work on most other vehicles. This is my third one from this brand, and they work very well. The mounts offer Magsafe (which comes on every iPhone), and there are many phone cases (even for non iPhones) that offer Magsafe. I actually purchased this frameless case at the same time and really like it so far. The Lisen mounts also come with a stick-on magnet for phones or cases that aren’t Magsafe compatible or to put on another device of your choosing.
