We don't talk about crypto-oo-oh
But we should. Here is a simple(r) guide for the rest of us.
In 2013, someone approached my husband about splitting the purchase of a special computer. This wasn’t just any person, though, and it wasn’t just any computer. He was Douglas’s best childhood friend, a soon-to-be neuroscientist and literal genius. And the computer, if we bought it, would solve a very complicated math problem and reward us with digital coins.
“Let me ask my wife,” he said. A classic answer for men looking to get out of something. We had just gotten married and finances were tight, so he wasn’t wrong to think that spending $3,000 on a hard drive with his buddy wouldn’t be well-received. But to his surprise, I saw it differently.
At the time, I was more than $200,000 in debt. Student loans provided the fairy money I thrived on during law school, when I chose to incur debt for what seemed like a low-risk, near-certain investment in my future earning potential. But “investment” is a term without context for many young people. And after graduating on the heels of the Great Recession and stomaching my first of many underpaid jobs, my degree didn’t feel like a good investment. It felt like a huge mistake.
From a dollars standpoint, $3,000 was nothing compared to the financial and emotional cloud hovering over my life. Was it too risky? Probably, but then again, the low-risk plan wasn’t exactly working out. Cryptocurrency and the potential for blockchain technology ignited a small spark of possibility in my hopeless state. Maybe I just needed a chance to learn again, to flex my brain muscles around something other than legal research. I never thought of the $3,000 as an investment—I knew better this time—but as an opportunity to rebuild my confidence through learning about something no one else knew.
I didn’t know much, but no one did. And when the truth provides you with little hope, can’t you search for hope in the unknown?
We flew to Texas to visit our friend, and he took us to the office park where the bitcoin miners were being made. We asked questions they wouldn’t answer. Our friend smirked and mumbled, “Of course you won’t tell us that.” I was in way over my head and loving every second. After several manufacturing delays, our friend received the computer, and it did its job. We mined a certain number of bitcoin and split them down the middle. Ever since, we’ve been on this ride and haven’t gotten off.
My story isn’t important because I am an expert—I am very far from it. It’s relevant because my entry point into the world of crypto wasn’t through some institutional investment strategy or a back-door connect to Silicon Valley. We had one friend. He was interested, I find him interesting, so I became interested. If you are intrigued by something, don’t let the fact that it’s confusing scare you off.
Crypto is exciting and scary. Both can be true.
As different blockchains, alt coins, and NFTs started gaining attention, Douglas got more involved in this fast-paced world, and it developed into a new area of expertise for him. Naturally, as I do in my finance-adjacent life, I continued learning, too. But despite being an early Bitcoin adopter, I was super intimidated to purchase an NFT. There were too many steps, too many choices, too many acronyms, and dare I say, too many men. But I understood the concepts too well to shy away from a challenge for long; it just isn’t in my DNA. So I bought one. The process of setting up a digital wallet to even be in a position to purchase an NFT was clunky and confusing. I made mistakes that cost me money. I called for reinforcement. I even sent a couple of embarrassing Tweets. While I’m proud for getting it done, the questions still on the tip of my tongue many months later are:
Why this is borderline insane? How can everyone participate in something with such high barriers of entry? Would any of my (non-internet) friends or family EVER get involved with this?
These questions drive the mission behind our new Web3 coffee company, CryptoDrip. Because coffee is a universal language that brings people together—and we love coffee—our ultimate goal is to bring this technology to the masses through just that. In February, we sold out our small batch “drip” collection of NFT artwork and established the Coffee Council, which is the bedrock of our community. I could go off about the exciting things we are working hard to build, but this isn’t an infomercial. This is about you.
When we discuss our new business venture with people outside of the space, I sense there are too many questions they’re afraid to ask. They’ll say something like, “When you’re not busy, maybe you’ll explain it to me,” or “I want to get it, but it’s a lot.”
Trust, I know.
Please allow me to be that one friend for you, because it only takes one. I’ve created the following guide to provide Our Tiny Rebellions readers with a primer for understanding Web3. This is basic, basic, basic, intended to cover the questions you feel too silly to ask and answers you might want to dig deeper into. So without further ado, I present “the future,” in simplest terms.
What is a blockchain?
Blockchain technology creates public ledgers that anyone can view and verify. Information is stored in blocks, which when filled up, link to the end of the previous one, creating a timeline of all transactions that ever took place with respect to that information. Consider a blockchain an unbreakable version of the paper chains you made as a kid; each link is a piece of the whole that keeps getting longer, and you can still see each one.
What is decentralization?
The concept of decentralization involves spreading control from one governing body to many. Imagine if instead of having one president, an association gave a portion of control to every one of its members. Control was decentralized, and some would argue, the association became a little more free to accomplish what it wants. Blockchain technology is also decentralized, using a series of networks (not just one) to constantly cross-check the security of its data. This not only liberates users of the blockchain from relying on one governing body and a handful of middlemen to transact business, but it actually keeps their data safer from bad luck or bad actors. For example, when a small business has one server that gets knocked out by a storm, it’s time out until further notice. But if The Hamburglar hacks into one small link in the blockchain network, the others would snuff it out and shut it down. Have I oversimplified this? You bet.
Why is blockchain technology important?
Because it authenticates data and proves ownership. Let’s say I pay you $5. You claim I didn’t, but I have no proof—a classic game of “he said/she said.” Not on the blockchain, though. All transactions exist on a public digital ledger. Apply this technology to business needs, like searching for chain of title, and you can understand how we haven’t come close to seeing its true significance yet.
People are hopeful that the blockchain’s ability to facilitate seamless transfer of funds will change the world. Possibilities include helping the unbanked, underserved, and people in need. On the flip side of these benevolent goals are cries for regulations to protect consumers from scams, the public from undetected criminal activity, and the environment from energy overuse. As with anything this new, and this huge, there will be controversy.
What is cryptocurrency?
Digital money. Unlike your dollars in regular bank accounts, cryptocurrency is decentralized, which means it isn’t managed by, or subject to, the regulations of centralized banking institutions—yet. Cryptocurrency relies on the blockchain to verify its transactions. Bitcoin (BTC) is the first and most prominent cryptocurrency. Others include Ethereum (ETH) and Solana (SOL). Who determines their value? It depends on who you ask, but the mysterious *market forces* impacting the price of Bitcoin are enough to give you whiplash.
What is an NFT?
A non-fungible token is a unique digital record of ownership tied to an asset. See, cryptocurrency is fungible, which means one ETH in your digital wallet is the same as the next. You can use that cryptocurrency to purchase an NFT. But each and every NFT is unique and uses that same blockchain technology to verify its rightful owner and conduct secure transactions. So for you skeptics wondering why you can’t just “right click and save” that JPEG of a drunken ape, I’d tell you the truth: because the blockchain says it’s not yours. That’s like snapping a pic of a Babe Ruth baseball card.
NFT technology offers more than you may realize. Anything can be affixed or assigned to an NFT, including music, art, or even a legal contract. Think about designer handbags. High luxury brands like Louis Vuitton and Chanel have been waging intellectual property warfare against counterfeiters since before I was even born. They have entire teams dedicated to enforcing their IP rights. Luxury brands also have huge secondary markets that are plagued with fraud. But imagine if each handbag’s certificate of authenticity—typically, a small card with a serial number—was also an NFT on the brand’s own blockchain. Verification and sale becomes a whole new world.
What are Web3 and the metaverse?
These are general terms used to describe the entire ecosystem built with blockchain technology. I will get dragged for this, but I think of Web1 as my first GeoCities webpage (which contained nothing but a giant JPEG of a shoe); Web2 as the internet you know today, i.e., The Social Network Formally Known as Facebook, Google, and other centrally managed giants; and Web3 as the entire world, or metaverse, of decentralized opportunities born from a more independent and free internet.
Why are NFTs culturally relevant?
Back to those apes. NFTs have gained mainstream attention due to the rise of digital art collections. In releasing these collections, artists and designers have a new way to generate revenue and share their work with a broader audience. As in any space where creativity intersects with capitalism, there are questions regarding how much good is being done for the artist, but we will leave that as an open-ended issue for our purposes here. Let’s focus instead on the fact that art is subjective. Its true value is determined through the eyes of the community and its holders. Would you pay $120,000 for a banana taped to a wall? Or 400 ETH for an EtherRock? I wouldn’t, but one woman’s breakfast is another woman’s masterpiece. I guess. And truthfully, digital art is somewhat of a flex. Like a limited-edition drop of clothing, NFTs can be another digital manifestation of your personal expression. It would be silly to discount from this conversation the value people place on how they’re perceived online.
Membership is another huge component. In our ever-connected lives, hyper-digitized by the pandemic, we lean on online communities more than ever before—belonging is something we seek. Discord servers, Twitter spaces, and live interviews enhance the brands and missions behind NFT art collections. Members receive access to IRL goods and experiences. And in terms of greater goals, many of these communities have real missions, the artwork existing almost exclusively as your way to support that mission. Remember when the shoe brand Toms basically started the “one for one” movement? Despite what your One Angry Friend™ might believe about NFTs, there are people in this space trying to do good, too.
But is an NFT an investment?
I don’t think you should consider it one. Let’s return to the subjectivity factor. Value is in the eye of the beholder, but sometimes, a squiggle really is just a squiggle. Your beanie babies really were just plush toys. Community efforts to pump their own art collections make sense, but they sometimes create confusion around where “value” actually lies. There are serious grifters in this space and tons of bots to be careful of. So no, just because Brayden, 16, made $2M by selling a super rare NFT doesn’t mean you will, too. You almost definitely will not, and you must know that from the start.
Instead, if you are looking to purchase NFT artwork, think about the community, the mission, and of course, the pleasure you draw from it. My first NFT was from Boss Beauties, a collection rooted in pre-existing initiative to provide mentorship and scholarships to the next generation of women. My choice was a no-brainer, and I enjoy being a part of their community and supporting what they do.
The real value here is in learning. By setting up a digital wallet and purchasing a small amount of cryptocurrency (and maybe an NFT), you are walking yourself into the future of the internet. As many love to say, we are still early, and the concepts and technology will continue to evolve.
Why are there so many acronyms?
So people can feel cool. Feel free to ignore them.
How can I purchase an NFT?
I’m not going to lie – buying your first NFT isn’t easy. It involves a labyrinth of confusing tasks and instructions. But Decrypt offers a nice step-by-step guide (with screen grabs) that can walk you through it.
OMG, too soon. How can I learn more?
Doing your own research (“DYOR” for you acronym lovers) is a beautiful thing. Here are some great resources to start with: Coinbase, Investopedia, and Decrypt. Also, peep BFF, which is a community aimed at bringing more women into the space.
Was this a lot? I’m here for your moral support: averagejoelle3@gmail.com.
The little things
Here’s a taste (get it?) of the artwork we auctioned off in CryptoDrip’s first small-batch collection. We sold out! Starting a Web3 coffee company has been challenging, frustrating, exhilarating, lots of adjectives. In this space, every answer presents four more questions. But we are learning so much, not only in substance but also in principle: Be open. Be patient. Believe it matters. It’s a humbling experience I am proud to share with you, so I’ll keep you all posted on what’s brewing next.
Also
Last month, an article resurfaced on Bustle about self-trust and intuition. As someone who has historically struggled with this, I took a lot from the piece.