And I mean LITERALLY explain like I’m 5, I literally know nothing of the technical terms and such
In: Economics
There is mining, but you can kind of discount that because it’s an extremely thin profit margin now. Essentially you buy a bunch of expensive specialized devices that can do the calculations much more efficiently than a CPU and you set up a lab where power is dirt cheap and run them 24/7 to make a small profit. Because of the cost of the electricity, this is mostly done in poor countries with cheap electricity. Some people will set up shop in a college dorm or somewhere where they don’t pay for the electricity and do that until they get caught or move out.
Otherwise, the best way to think of it is like beanie babies. You buy a beanie baby for one price and then turn around and sell it for another price. If you sell it for more than you paid for it, that’s a profit. The only money going into the system is money that people put into the system so crypto will continue to go up as long as more money invests into it. (Kind of like a pyramid scheme)
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