Open questions
A cumulative list of open questions. I will append questions to this list after each newsletter.
1. From If I buy crypto, how do I know I have it?
ANSWERED Once I buy crypto is there an experiment I can perform to verify it’s authenticity? Ideas:
Make a small purchase
Where can I make a small online purchase with crypto for something that I need? Whole Foods accepts crypto but ironically, only in person. I’ve never seen a “Bitcoin” option at checkout for any ecommerce site so I think while this may exist in theory I have yet to see it in practice.
Verify it’s authenticity with a third party
Ether: https://etherscan.io/ (unsure of this website’s affiliation and if it is in fact third party)
Bitcoin ?
Solana?
Math? Is there some sort of check digit equivalent for crypto?
Update, 3/30/22: I’ve just decided I can trust Coinbase for this
2. From What regulations are missing, and how can I protect myself absent these regulations?
ANSWERED In a dynamic regulatory environment, how do you protect yourself against a the risk that your investment could one day be made illegal? And/or the risk that the government will make their own crypto that could make non-government crypto obsolete? How do you protect yourself against an asset that is notorious for hacking and is being held by a bank without FDIC coverage?
Update 3/30/22:
Only buy proof-of-stake coins
Buy a Coinbase One subscription which gives you $1MM insurance to cover losses from unauthorized access
3. From What if something leapfrogs crypto?
ANSWERED What if crypto is the CDs of modern currency? I.e., it's 1990 and you think CDs are way better than cassette tapes and what could possibly be better than CDs? In other words, what if there's a new technology right around the corner that will totally obliterate the crypto market?
Update 3/20/22: Ethereum is setting up a bridge to migrate customers from ETH to ETH2 so that your investment doesn’t evaporate if they move to another technology platform. This covers technology shifts within a currency but not a giant technology leap from a newcomer, so this is another good reason not to sink a lot of money into crypto.
4. From What you should buy and how you should buy it?
OPEN What’s a good, free crypto volatility tracker?
ANSWERED What are the fees to buy?
Update 3/30/22: approx. $15.35 for a $400 purchase, aka 3x transaction costs to buy stocks.