The Great Digital Gold Capers: How Founders and Early Adopters Can Salt Cryptocurrency Mines for Self-Enrichment
Fast moving digital currency markets have seen their fair share of winners and losers who became so swept up by the promise of quick profit that their better judgement was gone with the wind. The long-term consequences of this mentality may be less apparent as the newly popularized digital currency industry rides a wave of public excitement, but as surely as all bubbles collapse, so too shall the bubbles that have been formed by the ‘tech-investor-esque’ mentality that has permeated the industry to its core. These aggressive early investors demand rapid growth and quick payoff, which has resulted in a litany of business failures throughout the industry.
ICOs have been rightly criticized for being susceptible to scams, but a little basic due diligence can help any investor avoid potential trouble. And make no mistake; that due diligence is an absolute necessity, given recent history. After all, some cryptocurrencies have raised unbelievable amounts of money without ever producing a real product – just empty promises.
Vaporware is software or hardware that is announced publicly and actively promoted, even though it does not exist. Studies have shown that 81% of all ICOs have turned out to be scams, which highlights the lack of due diligence from investors who bought into these projects. The most striking factor in all of this is that even though an ICO turns out to be a failure or scam, the team behind it always walks away with money.
Capitalism’s distinction from economic ideologies is that anyone can enter a market, leverage their skill set and have an equal chance to climb the ladder based on their performance. A dictator, ruler, or union doesn’t decide how much your work is worth; the free market does. Some proponents of economic ideologies often mislabel free market capitalism as just another ideology, but they couldn’t be more wrong. Free market capitalism means that the economy is devoid of the regulatory environment required to enable groups or individuals to impose their theories on how an economy should be run through regulation, coercion, or force.
The Dogecoin cryptocurrency was Founded in late 2013 with branding that played on a cartoon dog. It quickly became a hit among the younger participants in the cryptocurrency community. Based on an internet meme, Dogecoin’s founders exploited this brand recognition among their target audience, and it worked! The website Dogecoin.com was first published as a joke, but after it went live the website’s publishers were approached by a developer who offered to compile them a Dogecoin-branded QT client.
Aside from the painstakingly obvious differentiating factors such as total supply, algorithm, and name, there are several distinctions between Litecoin and Bitcoin. Although Litecoin’s leadership and community often sells itself short by dubbing Litecoin as ‘the silver to Bitcoin’s gold’, it has several distinct advantages over Bitcoin.