One source, so much reading that can be done
https://www.investopedia.com/terms/c/cryptocurrency.asp
IF a person is going to participate it is important to understand that if there is no denominator, as in no finite number of units, the thing simply can't hold value. So if you you can't say you own 10 of 100,000,000 or 10/10,000,000 (or whatever the denominator would be) then you are just riding a wave other much bigger entities are using to manipulate. Just look at what Bankman Fried did, people used US cash investments in good faith investments but that money was used by the system to prop up value in his system then he was bleeding the money out the back end via an "Investment Arm." This was embezzlement.
Real word issues:
1) IRS is really cracking down on this entire sphere, there were people wrecked by tax obligations generated by massive earnings so for this reason alone I would stay away. It is messy and thing is with the US, a thing is fine until it isn't and then you are just stuck.
https://money.com/crypto-bitcoin-taxes-2021/
new
https://www.cnbc.com/2023/08/29/tre...porting-rule-what-it-means-for-investors.html
Normally, in investments you only need to declare if there are gains. Well, we did a miniscule bit with Doge back when it was "the thing" just for funsies like how I buy a single Lotto Ticket when it's up to a Billion. Next we discovered our CPA was being directed to make inquiries to all customers about participation. I was a bit shocked but shared everything about closing it to show the loss, whole thing was under $100 but I got very spooked by the vibes.
2). Crypto has been the source of so much illicit behavior it will get you dragged under a microscope via guilt by association so for that reason I would stay away.
While this was bustling during Quarantine I did a smidge of reading and the one take away was it is a masterful way to hide transaction origination and destination points because there is just so much noise in the system, I got the same impression with NFTs.
After I read about Crypto and NFTs my impression is whole idea appears to be designed to benefit criminal behavior and regular people are coaxed to participate so that their volume of innocent transactions make it much harder for law enforcement to pick out the illicit transactions. Also, the normal currency cash infusions people put into a crypto system is lending value to the system but since the system isn't backed by anything it is so extremely perilous to regular people investors. Bankman-Fried exploited this and is now going to jail for it, there are countless others like him. The US has many enemies right now, it makes sense Americans would be targeted so one more reason I would completely steer clear.
There is a relationship between likelihood of loss and potential returns, like with a Lotto ticket the more you are hoping to win the less likely you will get anything back. This is why promised returns are completely outlawed, see
Wolf of Wall Street, lots of people go to jail for promising returns because it is tough to bait the hook without promises. Speaking of criminal enterprise movies
ENRON: The smartest guys in the room always makes for a good solid jolt of reality and how they turned off energy supplies in California to make themselves rich, mind boggling.
