The Untold Agreements of a Cryptocurrency Community
If you’re reading this, you must have heard of cryptocurrencies, digital currency, or crypto-asset. It is not too late to own one and there’s plenty to choose from. Yes, own one. The numbers (together with its public and private keys) are for sale.
The main ingredient to a successful cryptocurrency is defined by the community which promotes it. The hype usually begins within the community and keeping that feeling up is proportional to its growth and eventually your profitability.
The moment you receive or own one, there are certain things that you should be aware of such as these untold agreements.
So what are these untold agreements?
1. Cryptocurrency is a digital asset or property and not a digital representation of your money the likes of what you see on PayPal or the numbers on your Online Bank Account.
2. Owning one means you intend to keep it, use it or accept it as final payment or be accepted as payment based on agreed upon exchange rates determined by the community you are involved with or its underlying exchange. Nobody owes you anything. The moment you receive it, you’re paid for whatever underlying transaction defined between you and the seller or issuer have made. The transaction is final, immutable and the blockchain serves as an irrefutable proof of whatever agreement took place. Sales are considered as-is where-is.
3. Buying a digital asset is publicly recorded on the blockchain and available for scrutiny at any time by those who dare to have time to do some snooping like your tax man. Some cryptocurrencies do have privacy protection and a certain degree of anonymity embedded on its programming, which may prevent other people from spying on your transactions.
4. If you lose your private keys, you’re doomed. All you can ever do is to stare at the number on your screen. Not even the best developers can retrieve this for you.
5. The distribution, usage and adoption of your cryptocurrency depends on the collective effort of your community to promote it. As part of that community, you need to let people know about it, share it, give away some, buy or sell it and lastly protect its perceived value which may be very volatile.
6. Owning cryptocurrencies mean that you have no one to blame but yourself if everything goes south.
7. If you can’t sell it the way it was sold to you, then you must do your best to learn how to. This is done by understanding the overall goals, plans, and purpose of your cryptocurrency. Yes. Each cryptocurrency has a purpose. You should know that purpose by heart. Like all businesses, your cryptocurrency serves as your product. You should know what your community is all about and what problems they are trying to solve.
8. Never call your cryptocurrency a shit coin. Don’t let anyone call it a shit coin. Protect its reputation especially if you’re vested into it. Perception can make or break your bottom line.
9. You are responsible to pay all applicable taxes incurred by earning capital gains, commissions or income earned by using your cryptocurrency depending on the nature of transaction you partake.
10. You are responsible to determine the legality of these types of assets in your own jurisdiction.
Other agreements might be in a form smart contracts depending on the platform both parties use.