Why does crypto depend on fiat?

English Education
#1

hello friends of the cardano project,

in relation to topic: "Where does the FIAT go when we buy Crypto? " I would like to raise the following thought to check if it is an issue:

why does a cryptocurrency or any other blockchain for that matter, has to be measured by/ mapped to current fiat currencies e.g. dollar/ euro at all?

shouldn’t it be autonomous since the new economy is happening inside the new eco system it is building?

shouldn’t ada replace dollar/ euro from the beginning?

please forgive me my ignorance.
cheers,

iLico

#2

Hi iLico,

So it’s up to you what you compare an asset against, some use their local currency, other use the american dollar and some use BTC.

In regards to where does the money go, that would be where ever you bought your crypto from initially. There is no new ADA, it is all owned by someone. So you most likely buy ETH first on an exchange, For example Coinbase. Therefore coinbase gets your local currency and they sell you ETH.

With that eth you may change it to ada via another exchange. In this case, depending on how you buy your ada, you’re either selling your eth to the exchange or someone else looking for eth and selling their ada to you.

Ada hasn’t replaced the dollar, at the moment the dollar is the leading currency and crypto assets are not seen as currency in many countries.

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#3

thank you for your answer.

-> crypto assets are not seen as currency in many countries.
that’s exactly the hurdle when pitching to my clients. they look at ada more like a gamble where you get your chips at the casino entrance; meaning after the game they gonna check out.

of course we all know there is so much more to cardano.
and this is where i would like to get: showing that cardano is an eco system that cannot be measured in any fiat currency, because it cannot be compared to the existing economy, for instance because its assets/ tokens maybe completely different in nature, at least been weighted completely different than in the economy of fiat currencies.

does this make sense?
cheers,
iLico

#4

As much as I would agree Crypto assets are high risk / high return, Cardano included at the moment – to compare Cardano to casino chips is very naïve, they probably have that opinion on crypto itself, not Cardano specifically, which to be honest can be quite hard to convince someone otherwise.

Cardano still has a fair way to go to achieve its roadmap, although things are moving along nicely now and we will be there quicker than some people think.

For someone to get into crypto they need to make their own decisions and satisfy themselves. The crypto space gained a reputation for scams, pump and dump schemes and something used by criminals. There needs to be a blockchain which breaks away from this and gains its own reputation; which it will not do just through telling people what the projects intends to do, but only by doing it and showing people. Cardano isn’t a hype project; I would say at this stage, unless someone does research into Cardano, it isn’t easy to get new everyday people on board. – Things will change one day.

If your friends are genuinely going to give you a chance, and you want to give them the knowledge they need to make their own decision, whether to spend their hard earned cash on Cardano or not, I would start with the famous Charles whiteboard video.

There is no one better than Charles Hoskinson at convincing someone on the potential of Cardano, I recommend checking out some of his videos on his personal youtube channel.

https://www.youtube.com/channel/UCiJiqEvUZxT6isIaXK7RXTg

For some very good short videos explaining specific things within the Cardano space, adatainment is a great source of easy to understand information

IOHK are also putting out video updates explaining where we are at with the Shelley Testnet

The https://cardanoroadmap.com/en/ is a good place to visit to read papers and see the different stages for the current roadmap of Cardano.

Finally, Cardano has three entities – EMURGO, IOHK and the Cardano Foundation – it is good to look into these and research what each of these entities do. Hopefully some of this information is a great source for you and your friends to get started.

#5

thank you again so much for your support. much appreciated :slight_smile:
i guess it’ll get much clearer on the way.

mmh, please allow one last question:
i do have a fairly good understanding of Haskell, but haven’t found much on Plutus without reading code itself. could you please indicate an entry point for Plutus to bootstrap writing contracts?
or would it be possible to purchase some material that was used at seminars held?

cheers
iLico

#6

Unfortunately this question goes beyond my know how. I am not a coder, I can’t read or write any code.

Hopefully someone sees this question who is able to answer :+1:

#7

Hi, there’s a Plutus book available and a Udemy course. Also a playground. But it’s a bit obsolete already and will be reworked soon.
Some recent samples of contacts can be found here:

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#8

thank you all!

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