so i had my parents over to my house the other day i was showing my dad the frankenstein immersion cooling project i've been working with and he was like oh is this for your bitcoins and internally i was trying to decide what echelon of explanation i was going to try to attempt my dad's in his 70s and even though he was a network engineer back in the 90s and the early 2000s in his heydays he hasn't really well he hasn't kept up with the intricacies of the blockchain so i decided to go for it i said well no this computer is mining ether huh i said ethereum it's a it's a cryptocurrency he said huh i said it's like bitcoin but it's not really like bitcoin at all oh it's a type of bitcoin yeah it's a type of bitcoin my name is nicholas johnson and this is the space warehouse actually this is south beach in miami we're doing an art thing my dad is a huge supporter of my projects and he watches my videos hi dad but either he's watching with the sound off or he just doesn't understand anything that i ever talk about whether i'm talking about the upcoming ethereum 2 merge or the increasing global block difficulty despite the fact that china took so much hash power offline there's no way he's following along when i'm talking about my bullish outlook with the upcoming having or why i might be planning a trip to the moon i'm completely sure i'm not alone in this there's a whole generation of boomer parents that don't know they can just ask their phone a question out loud or that the things they read on facebook might not even be real so i want to do all the parents out there a service this video shall serve as a commonly used crypto words explainer and it will be incomplete particularly if you ever go onto reddit and look into anything at all these are in the order that they come to me and really half of them could be the subject of their own video but i think i can help give at least some people a basic understanding when you're reading the internet about cryptocurrencies let's start with some acronyms that may trip you up initially with people's responses online d-y-o-r do your own research a lot of times when people post a basic question on a forum online people will jump all over them telling them to do your own research seemingly oblivious that the person is no doubt doing some level of research just by asking the question dd due diligence similar to dyor when someone's telling you to do your dd they're telling you to look more deeply into whatever thing you're trying to spend money on it typically follows advice that someone just gave like oh it's looking like tesla's got another 3x in them in the short term based on the supply chain problem but do your own dd that is to say if you lose your money don't blame me because i just made up what i said dca dollar cost average i swear these aren't meant to be alphabetical you'll hear the advice to dca in or dollar cost average into an investment rather than just dumping all your money in at once it simply means to systematically invest equal amounts spaced out over regular intervals regardless of price that follows the old average of time in the market beats timing the market 2fa two-factor authentication i don't know why age has anything to do with it but old people tend not to use very good security with their online accounts the password password is not a good password two-factor authentication is a method that websites and apps and exchanges will use to make sure that you are you so even after you put in your password you'll have to look at your phone or on your watch and ok something or put in a six digit password that they'll send to you or whoever stole your phone when lambo if someone's asking when lambo about a particular cryptocurrency they're just asking when their investment will make a return large enough for them to buy a lamborghini this is the result of some coins very suddenly going up like a thousand percent overnight and making a lot of people super rich well unless they hold because usually those same coins will dump right after dump when a coin dumps it means that either a huge majority of holders sell suddenly or one guy who holds a whole bunch sells his coins this causes a cascade of everyone else selling and the price drops faster than you can even sign into your account speaking of bag holder a bag holder is someone who bought early enough to watch their investment skyrocket or they even bought it at the peak but refused to ever sell for a profit so they're left holding the bag full of worthless currency after it dumps a whale a whale is an extraordinarily wealthy person or an organization controlled by one investor who can single-handedly change the price of a cryptocurrency either by buying or selling such a large amount that it literally just changes the value of the currency because of supply and demand or by having so much clout that the mere mention of a cryptocurrency will drive so many people to go buy it or sell it that the price will change to hold often spelled hodl is the practice of not selling your coins hoddle first appeared in 2013 as hold on for dear life when user game kiuby held through that year's price collapse in order to realize enormous gains personally i don't love it when people speak it out loud that way but that's completely a personal preference and i'm not going to tell you how to live your life diamond hands is the practice of holding no matter what it's when you believe in your project so strongly that you squeeze your token so hard that your hands turn into diamonds paper hands on the other hand is the practice of taking profits by selling your coins and for some reason it's used as a derogatory slur even though almost everyone's in this to make money fudd stands for fear uncertainty and doubt if you're not an avid investor it might come as a surprise to find out that there are whole teams of people deployed all over the crypto market and in the stock market to write articles and social media posts specifically with the intention of casting doubt among investors and therefore move the price downward when people sell out of their positions this is done so that larger investors can buy in at a lower price and it's actually quite common a fudster is someone who's identified as a person spreading fud often lying about a project or taking something true just wildly out of context to make it scary market cap market capitalization refers to the total dollar market value of all coins available for a particular cryptocurrency the price of bitcoin for instance changes constantly so the moment i say this out loud it'll be out of date but bitcoin currently has 18 million 868 506 coins in circulation each one costs 66 000 so their current market cap is 1 trillion 259 billion 874 million 136 049 if you're watching this even a day after i recorded it it's completely different but that's 1.2 trillion dollars altcoin an altcoin is simply anything that's not a bitcoin currently ethereum is the most popular altcoin by market cap a [ __ ] coin is a cryptocurrency with little to no value or a digital currency that has no immediate discernible purpose however every once in a while when the whole world comes together even a project that started out as a joke as a meme can gain enough investors to create millionaires out of nowhere but in general it's risky to invest in [ __ ] coins sometimes you'll hear about a coin going to the moon this one seems fairly obvious but sometimes it's written like ethereum is going to moon after the hard fork i can see that throwing my dad off of its meaning to moon metaphorically means that your blockchain token of choice has found its way onto a rocket ship and its price is about to blast off so high that it will travel into space i feel like this massively oversimplifies most aspects of orbital mechanics and space travel with respect to altitude like you don't just go straight to the moon you have to orbit the earth at just the right time and speed and actually at some points you're lower than when you started but it's hard to argue that the moon is really high so going to the moon means your price is going really high the blockchain the blockchain is a ledger of all the transactions that have ever taken place within that system for bitcoin as new transactions take place peer-to-peer computers that are connected all over the world will validate those transactions and every 10 minutes a new block is created that block is then connected to the previous block to form a chain that can never be edited or deleted forever and ever because every bitcoin miner around the world has a complete copy of that ledger and the whole network reaches a consensus of that data so that no one entity can control it or it could change it is therefore decentralized decentralization decentralization refers to the fact that no one entity controls the price or transactions of a cryptocurrency on the blockchain unlike a government currency a fiat currency like the us dollar no government can just make more bitcoins potentially devaluing all existing dollars like they can with paper money mining mining is super hard to simplify basically because like what is a calculator actually doing when you put in 28 times 87 who the hell knows but it spits out a correct answer everyone who's mining is running specialized asic computers they're trying to solve a block using a nonce in a bunch of hashes crypto miners are racing to solve some complex algorithm to be the first to complete a cryptographic puzzle to win the prize to be the one that writes the next block on the blockchain and with it to receive a reward in that currency what i can bring into perspective is that bitcoin mining speed is measured in the terra hash per second that is trillions of attempts of solving a riddle per second a trillion is a number people have a hard time conceptualizing accurately but i think i can help if you got a job where you were paid one thousand dollars an hour for 24 hours a day it would take 114 155 years to earn a trillion dollars those computers are working hard nft non-fungible token an example of a fungible token is a bitcoin each bitcoin will always have the same value as every other bitcoin nfts though are all unique their ownership data and transaction history live securely on the blockchain which remember is not editable and cannot be deleted so when you see an nft of a picture or a 3d asset on a computer the nft part is a digital identification not the actual picture itself it just points to and explains ownership of the art we call that provenance in the art world the reason these are so good for art is because the blockchain is immutable it cannot be edited the history of ownership and origin of the art can't be fake and can easily be tracked down for authentication art valuation without nfts like the traditional art trade the business i'm actually in is practically an art itself discerning whether a work is even real or who's owned it in the past a lot of it's just made up and controlled by a number of gatekeeping groups well art world secret nfts can be used much more widely than just art also they can be used to show ownership of just about anything anything that would normally have a contract the deed to your house could exist as an nft and it would be easily traceable and non-forgeable not that forging deeds to houses is a common thing we worry about but the process of selling it would actually happen a lot easier crypto words and acronyms part one of maybe one maybe eleven who knows i don't know we're in miami now and i've got art world things to do so comment more crypto words if you got them maybe i should make a mining one of these things i think i'll make one of these for mining
