Is Crypto "Dodgy"?

in LeoFinancelast year (edited)

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Define "Dodgy"

This conversation usually comes up as I discuss Bitcoin and crypto with my friends - the "dodginess of crypto" - as they associate it with non-mainstream behaviour that we're mostly used to with high street banks. Seeing as cryptocurrencies are not illegal in the UK and are considered as assets and any gains made when disposing of one crypto is subject to capital gains tax, the dodgy aspect certainly isn't a legal issue. The emphasis then moves to the negative headlines such as criminal activity but of course, there will always be criminal activity regardless of the medium used to partake in it but what does that word "dodgy" even mean?

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Google's Oxford definition in the image above alludes to "dodgy" meaning dishonest, unreliable and potentially dangerous. So, is crypto dodgy? Let's look at some of the things for and against using this definition and you can come to your own conclusions.


Dishonest?

The whole point of blockchain technology is to actually be the complete opposite of "dishonest" due to it being a public ledger where all the transactions are available for everyone to see from the very first transaction on that specific network. Not only that but you can even set up your own dedicated computer that can verify transactions so you can see for yourself. So the technology itself is built to be honest assuming it's not been hacked or built/maintained by bad actors but to hack, for example, Bitcoin in 2020 by taking over 51% of the network would be such a costly exercise that it wouldn't be worth it.

Having said that, there are still crypto projects out there that are dishonest, scams or just badly run and it's up to you to trust your research and instinct here. We often hear about the exit scams and millions of dollars gone missing that make headline news so it can easily be construed that crypto is dishonest if you don't know what you're doing and fall into traps. So finding out about the team behind the project, their background and experience will put you in good stead to rank the "honesty" of it.

Dodgy owners of the project = dishonest. Not dodgy = honest.


Unreliable?

In today's world, we're used to things being connected online all the time with logging in to our bank accounts on our mobile app or social media, LeoFinance etc whenever we want. So, how reliable is the crypto project in terms of uptime, verifying transactions and ensuring accounts have the amount in they should?

Ever since I've bought my first tiny amounts of Bitcoin 3 years ago, I've always had the same amount in my wallet unless I sold, bought or had interest accrue on them. My personal experience is that, yes, it's very reliable, the amount I have hasn't changed without my permission although there have been other projects I've known and been involved with where wallets were tampered with and millions lost, for example exchange wallets. So this comes down to security and how reliable the people are who are maintaining the transactions with their computers and servers.

Dodgy people and computers maintaining the chain = unreliable. Not dodgy = reliable.


Potentially Dangerous?

Well, in the sense of crypto, the danger comes from the money that you put into it that you can potentially lose. If you're particularly averse to risk and can't afford to put money in, then crypto is probably not for you. The volatility of crypto with sometimes double digit % daily price swings scares a lot of people off and so it can be very dangerous if you get in at the high point, only to see your portfolio nearly wiped out 6 months later... ahem... happened to me!

However, the counter argument is, don't invest more than you can afford to lose. Find strategies that reduce the risk like dollar cost averaging or 0 monetary investment like playing games, watching videos or sharing content to earn crypto and it becomes a lot less dangerous to both you financially and mentally.

Dodgy volatile price swings = dangerous, not dodgy 0 investment = a bit safer


Conclusion

Cryptocurrency itself is literally just a series of 0s and 1s going around in a system, following a certain set of logic and rules that it was programmed to do, like money in your online bank. If left alone to do nothing, it will literally do nothing.

As is usually the case though, it's the person/people/group in charge of maintaining those 0s and 1s and their behaviour that determine how "dodgy" crypto/money is based on honesty, reliability and danger. I guess it really depends on how you rate these 3 factors to make your own mind up about if you want to invest in anything but I will say that dodgy dealings happened long before crypto and they will happen long after thanks to... well... dodgy or non-dodgy humans 😃

Do you think crypto is "dodgy"? How have you countered the arguments that "crypto is dodgy" in your conversations with others? Let me know in the comments below!

Take care you dodgy crypto lot!

Nicky

I'm not a financial advisor and this isn't financial advice

Originally posted here

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I dont think it is dodgy in the original sense of it, but yes there are dodgy types. The first time I googled bitcoin I was faced with a ton of dodgy stuff, infact the first page of google had no useful information to me, I closed the system and never checked again till about 2years after. So yh while we may say it is not dodgy in the real sense of it, due diligence must be applied at every point to ensure that it is not.
You've provided quite few but important things to look out for when discerning a dodgy crypto because sometimes it can truly be really hard

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Great call on not checking Google for 2 years - similar thing happened to me when I first Googled Bitcoin in 2012 and couldn't find anything helpful at all. Wasn't until 2017 when I found a few more balanced, non-technical articles that I could understand to help me make a better decision to get involved.

Up until that point, for me crypto was dodgy as it was too dangerous due to not knowing what it really was but like you say, the due diligence helped to reduce that although I still ended up getting burned a lot haha!

Thanks mate, I wanted to keep the post balanced and give food for thought for those times we speak to others who aren't into crypto yet. Who knows, maybe friends and family will come around eventually 😀

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Do you think crypto is "dodgy"? How have you countered the arguments that "crypto is dodgy" in your conversations with others? Let me know in the comments below!

Monero :)

Privacy coins in general.

Wasabi wallet and other blenders.

Extreme libertarianism.

Scams galore.

Retarded shillers, chartists and money magicians.

Yeah, there are definitely dodgy elements. The cryptographic nature can allow people to do things, especially on a scale, that was previously unimaginable.

There is also a lot of good. Nothing is perfect. We gotta work out the kinks and decide what is acceptable.

Anything that is game-changing requires new rules.

Haha yeah I could have done a whole separate post focusing on the dodgy stuff! Was thinking about doing a two part post but thought I'd keep things relatively short and balanced.

The privacy coins are certainly not going to help with the non-dodgy image but like you said, there is a lot of good out there too. Discerning the different projects and which ones resonate with you can be a challenge but most, if not all, will likely start off with BTC if they even get that far.

I guess it also depends on who is introducing crypto and how dodgy they are too. Haha, there's a lot of factors really 😂

How are you doing any way mate? Hope you're keeping well

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Yeah, I think the community needs maturing more than anything. The people who are concerned about KYC deserve their own space, but that's going to be a dodgy space.

The important part is I kinda know what I'm talking about and I don't want a consultation fee or plan to shill anything. I generally tell people to only buy BTC or invest in funds until they know what the hell they are doing. Yeah okay, if they blog ~ Hive.

I'm doing great. I've just been busy and don't blog as much as I used to. I'm trying to get back into reading and commenting. I need to set up the new favourites feature so I can only favourite the blogs I read and don't need to unfriend authors I support but don't really engage with.

I hope you are doing alright too. UK seems to be in a shitstorm recently.

Yeah still a way to go for things to be mature but BTC is getting there with the institutions coming in, wonder how far they will filter down to other crypto assets or if they will just stay in BTC? I agree with what you say about the anti-KYC brigade!

Again, pretty much agree with you're approach as well - that's what I do, talk about BTC because people have heard of it. Might talk about ETH too but outside of that, no-one knows or cares but I've mentioned HIVE and LEO as places to blog, learn and earn before but a lot are thinking of "number go up" and their eyes light up at the thought of getting rich quick... I usually deflate that thought train as quickly as possible!

Glad to hear you're doing ok and taking the easier route, posting often can be a bit intense but I've come back from a 2 week break and finding it good fun again. Probably just going to pace myself in 2021 rather than go all guns blazing again but enjoying using LEO and sharing my knowledge and some of my experiences here!

Oh yeah, we're in deep shit here! Total lockdown again and that's probably going to be the case up until April. There's "2 new variants" here apparently and they are spreading like wildfire so I'm just keeping my head down and living in solitary confinement (although nothing new there haha)! Doing what I can to stay safe and keep others too by not going out unnecessarily and following the rules. Might as well earn some crypto whilst I'm staying inside and not running/hiking!

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Do you think crypto is "dodgy"?

Obviously not.

How have you countered the arguments that "crypto is dodgy" in your conversations with others? Let me know in the comments below!

I don't think there is a single person in crypto who hasn't dealt with people not in the space telling them that crypto is dodgy.

I've told people that I prefer math to violence as a way to keep people honest.

Take care you dodgy crypto lot!

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I've told people that I prefer math to violence as a way to keep people honest.

Hey, now that's a pretty good reply to the question! How did they react to that?

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They had nothing to say but it didn't ultimately make them change their opinions.

Haha, I know how you feel! I usually get the "hmm" or humming sounds when I present the case... and that's about as far as it gets!

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..

Are you also having issues with commenting? I changed my node setting in profile settings to Hive.blog one and seems to be ok, I was on anyx before and comments/posts weren't loading.

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Hey Nicky,
Sorry to jump in a bit off-topic.
We are very grateful that you currently support the HiveBuzz proposal, but it will expire in a few days.
Do you mind to cast your vote for the renewal proposal we made for 2021 so we can continue with our work?
Thank you. Wish you a happy Xmas 🎅

https://peakd.com/me/proposals/147

No worries folks, I've supported your new proposal now! Not sure how much my HP will do for you but hope you get towards that goal - keep those cool initiatives coming!

Have a great Christmas too! Stay safe!

Thank you for your unfailing support @nickyhavey
Merry Christmas to you and your family 🎅

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