Bitcoin Goes on Sale

www.ozy.com [OZY]() Your World. Bold & Bright [Daily Dose]( Sponsored by [Cariuma]( The newsletter to fuel — and thrill — your mind. Read for deep dives into the unmissable ideas and topics shaping our world. Aug 10, 2022 Today Recent crashes in crypto markets have led many investors to pull back from digital currency. Is that the best plan — or is now the time to “buy the dip?” This begs a fundamental question: What makes crypto valuable in the first place? – with reporting by [Jesse Seaver]( [A Gift For You]( [Cariuma]( The shoe with the [61,000-person waitlist]( is back! If you missed them the last time around, the sneakers we can’t get enough of are back - and just in time for summer! These all-season low-tops are OZY’s favorite look for dressing up or down. But don’t wait around, these comfy kicks fly off the shelves and won’t be around for long! Grab a pair with our exclusive code, [OZY20](, landing you 20% OFF. This special offer is just for OZY readers. [Snag A Pair Here]( Wait a second Isn’t this the worst time to buy crypto? It’s been a tough year for crypto investors. Bitcoin, the world’s flagship digital currency, is down [about 66%]( from its all-time high price of $68,990 in Nov. 2021. Meanwhile, if you purchased digital currency through the Celsius or Voyager lending platforms, your assets are currently frozen while bankruptcy filings proceed. Sounds like a good reason to stay away from these volatile assets, right? Maybe not. Maybe that’s why we’re afraid the machines will someday turn against us. That’s not a new fear. In a 1942 short story called “Runaround,” Isaac Asimov introduced what he called “three laws of robotics,” in which he advanced the idea that the single most important consideration in the further development of robots was the prevention of harm that machines might cause to humans. But what if humans were the aggressors and robots the victims? That was the premise of “[Slave/Master](,” a 2017 installation and performance at London’s V&A Museum. Featuring humans dancing with robots, the work showcased increasingly anxious and evasive behavior by machines in response to the human dancers, whose movement over time became more abrupt and erratic. In terms of how artists are addressing provocative questions about our relationship with machines, “Slave/Master” was just the beginning. Crypto markets are like other markets If you overlay the yearlong trendline of the S&P 500 stock exchange with the price of bitcoin over the same period, you’ll notice that they move together — though bitcoin is more volatile, with higher peaks and deeper troughs. In other words, crypto markets aren’t isolated from larger economic trends. MarketWatch has [compared]( the current dynamics of crypto markets to the Nasdaq stock exchange in the early 2000s, when some of the first internet-based businesses were overvalued and went belly up. Digital currencies, in addition to demonstrating the same general trends as stock markets, are a relatively new animal. And as with the dot-com bubble, some over-hyped crypto assets will tank, while others will soar. Does that mean it’s better to stay away from crypto until things are more stable? That’s the tack that skittish investors are likely to take, while others will shop the sales. Bitcoin is (still) on sale Everyone wanted a piece of bitcoin when the price was north of $60,000, but now that it’s around $22,000, many people aren’t sure — even though, mathematically speaking, it’s two-thirds cheaper than it was at its peak. Experts are already warning that this sale won’t last forever. Bank of America has found that market dynamics over the past month indicate that crypto markets are returning to “[bullish](.” This merely underscores that crypto investing is like other types of investing. Buying when markets are down requires the guts of a contrarian, and the nerves to hold on if and when prices dip further. Maybe it’s all a bubble Perhaps people are crazy to put their money in assets that are just strings of numbers on the blockchain. Why were digital currencies ever considered valuable? That’s a reasonable question. The answer may surprise you. [5 STARS FOR COMFORT]( [Cariuma]( No one likes breaking in a new pair of shoes. With [Cariuma’s]( broken-in-out-of-the-box feel, you’ll be sure to recommend them to friends! Planning on walking around town this summer? Make sure you check out their vast range of colors, prints, and exciting limited edition collabs - they have a style for every look! Excited to try them? Get [20% OFF](at checkout with your personal code, OZY20. This special offer is just for OZY readers. [LET’S GO!]( Community is what makes crypto valuable Currency is about people The recent collapse of certain crypto platforms did something more than underscore the risks of investing. It highlighted some initiatives that have retained their value even through the market turbulence. The [Proof Collective]( is a members-only group of artists and creatives. It launched a non-fungible token (NFT) that has grown in popularity because there is a community of people associated with it who buy, hold or trade their tokens, while also hosting and attending events in real life — IRL — not just on the internet. For a new currency to gain value, there needs to be a group of people who believe in it. “Ultimately, decentralization relies on a community of people,” says Noah Thorp, CEO of [Upside](, a global Web3 company that specializes in token launches. “Decentralization” refers to currencies that are not controlled by a central government, like the U.S. dollar. Bitcoin is valuable because there is a global community of people who believe in the currency and what it can become. And other digital currencies gain value when there’s a community buying the coin or token because they believe in it — something more than owning it just to own it. “It is community use that determines the long-term [value of] tokens and NFTs,” Thorp told OZY. “Projects must create assets that the community values long term.” Big opportunity, maybe While it’s not legal to print your own money, it is legal to generate your own NFT that can function as money within a given community. And that creates considerable opportunity for those who buy in early to a currency that ultimately grows a following and becomes successful. What’s clear is that crypto markets aren’t going anywhere. And recent market dynamics have offered some important lessons about what makes for sound or unsound investing in these spaces, for those who soldier ahead. [TAKE OUR POLL]( WATCH EVA MARCILLE on [The Carlos Watson Show](! Some lessons learned Investors on borrowed time and money Many of the recent horror stories of crypto investors losing everything involved those who bought digital currency on margin — meaning, with borrowed money. When prices fell, they went underwater. Meanwhile, those who put their trust in Celsius or Voyager are also facing the possibility of losing everything. So let’s take a closer look at the risks of using certain crypto platforms over others. Advanced topics in calamity markets Both Celsius and Voyager are what are known as “custodial” platforms. As with traditional banks, investors deposited funds into these digital platforms and believed they would be able to withdraw their money at any time. (Coinbase, Binance and other major crypto exchanges are also custodial.) As Voyager and Celsius have now filed bankruptcy, account holders have lost access to their money for the time being, though bankruptcy proceedings may ultimately result in repayment. Some crypto enthusiasts directly hold their digital currency without an intermediary platform, citing a famous, almost cult-like saying: “Not your keys, not your crypto.” In other words, they hold their own “keys” — which, in the case of bitcoin, is a string of code secured with 256-bit encryption. Holding one’s own keys carries other risks, however. If you lose your keys, you lose your crypto. A middle way One approach worth considering, says Thorp of Upside, is to store your digital currencies in several places. “If you’re interested in owning crypto, hold some of it on custodial platforms and hold some of it directly, thereby spreading around your risk,” he told OZY. If this approach appeals to you, consider an app like [Ember Fund]( that helps automate buying and diversifying across currencies. Ember is non-custodial; you hold your own keys. You might also consider app [M1 Finance](, which performs similar functions but is custodial. [TAKE OUR POLL]( Community Corner If you had $10,000 to put into digital currencies today, which coins would you buy? Share your thoughts with us at OzyCommunity@Ozy.com. ABOUT OZY OZY is a diverse, global and forward-looking media and entertainment company focused on “the New and the Next.” OZY creates space for fresh perspectives, and offers new takes on everything from news and culture to technology, business, learning and entertainment. [www.ozy.com]( / #OZY Curiosity. Enthusiasm. Action. That’s OZY! [TV]( | [PODCASTS]( | [NEWS]( | [FESTIVALS]( A Modern Media Company OZY Media, 800 West El Camino Mountain View, California 94040 This email was sent to {EMAIL} [Manage Subscriptions]( | [Privacy Policy]( | [Read Online](