Post by hasben on Jun 23, 2022 7:48:22 GMT -8
How Crypto Currency works… an analogy in layman’s terms.
Not long ago a merchant found a lot of monkeys that lived near a certain Village.
One day he came to the Village saying he wanted to buy these monkeys.
He announced that he would buy the monkeys at $100 each.
The Villagers thought that this man must be crazy. How can somebody
buy stray monkeys at $100 each? Still some People caught some monkeys and gave it to this merchant and he gave $100 for each monkey.
This news spread like wildfire and People caught monkeys and sold them
to the merchant. After a few days, the merchant announced that he will buy monkeys at
$200 each.
The lazy villagers also ran around to catch the remaining monkeys.
They sold the remaining monkeys at $200 each.
The merchant then announced that he will buy monkeys for $500 each. The villagers start to lose sleep. They caught six or seven monkeys, which was all that was left and got $500 each.
The Villagers were waiting anxiously for the next announcement. Then the merchant announced that he is going on holiday for a week, but when he returns, he will buy monkeys at $1000 each! He also said that his employee will be in charge, and would take care of the monkeys he bought pending his return.
The Merchant went on holiday.
The Villagers were frantic and very sad as there were no more monkeys
left for them to sell it at $1000 each as was promised by the Merchant.
Then the Merchant’s Employee contacted them and told them that he
would secretly sell them some monkeys at $700 each.
The news spread like wildfire. As the Merchant promised on his return
that he would buy monkeys at $1000 each, they would achieve a $300
profit for each monkey.
The next day the Villagers queued up near the Monkey Cage.
The Employee sold all the monkeys at $700 each. The rich bought
monkeys in large lots. The poor borrowed money from money lenders and
bought the rest of the monkeys.
The Villagers took care of their monkeys & waited for the Merchant to return. However nobody came! Then they ran to find the Employee. However he was not to be found.
The Villagers then realized that they have been duped buying the useless stray monkeys at $700 each, and were now unable to sell them.
This Monkey Business is now known as Bitcoin. It will make a lot of People bankrupt and a very few People filthy rich in this kind of Monkey Business.
