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That's the new world we live in. Crypto currencies are something entirely new with a lot of variables and extreme volatility. There are generally two types of coins. The ones you can mine, and the ones you can not.
You should stay away from coins that you can not mine, because anybody can generate their own coin and call it something like meloncoin or scamcoin or whatever and sell them at any price they want without the company having anything of value, Basically a Ponzi scheme.
The ones you can mine are a different story all together. Those are decentralized cryptos and no one is really in control of them, and although their value can be manipulated in the same manner as the stock market, such as a pump and dump scheme, they are generally a much safer option for investment and trade.
The reason cryptos have any value is the same reason than the good old dollar has value. There is a finite amount of a particular crypto, they get more difficult to mine as time goes on and the ones that people lose due to theft, data corruption, etc., are not replaceable. Naturally, over time, all those factors kick in and increase the value of a coin.
You should stay away from coins that you can not mine, because anybody can generate their own coin and call it something like meloncoin or scamcoin or whatever and sell them at any price they want without the company having anything of value, Basically a Ponzi scheme.
The ones you can mine are a different story all together. Those are decentralized cryptos and no one is really in control of them, and although their value can be manipulated in the same manner as the stock market, such as a pump and dump scheme, they are generally a much safer option for investment and trade.
The reason cryptos have any value is the same reason than the good old dollar has value. There is a finite amount of a particular crypto, they get more difficult to mine as time goes on and the ones that people lose due to theft, data corruption, etc., are not replaceable. Naturally, over time, all those factors kick in and increase the value of a coin.
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