Some people think there is no better way to become rich Quick by risking your money on an unproven cryptocurrency. Many crypto projects have stability and long -term yields, to fall from a cliff shortly after launch, leaving small investors to pick up the parts. However, on January 18, two days before President Donald Trump was sworn for his second term, a piece of memes on his behalf was launched, which led a lot to wonder if it was a scam.
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I asked five questions to Chatgpt to get the ventilation on $ Trump and if it’s a good idea for someone to invest. Because crypto can be a little complicated for some, I asked Chatgpt to explain the answers as if I were a 12 year old child. It is How he replied.
Chatgpt said: “So the Trump cryptocurrency is a digital part or a token, such as Bitcoin or Ethereum, but it bears the name of Donald Trump, the former American president. It is not really created or managed by him, however. It is made by a group of people who think it is fun or interesting to have a cryptocurrency with the name of Trump.
$ Trump is a type of cryptocurrency known as the same medal. The pieces even are not as serious as the main pieces like Bitcoin, and many begin like a joke. These parts are often much more volatile, take off or crash in seconds.
In addition, certain groups like NPR contest the fact that a group of people completely independent of President Trump has created the play, saying that he and his business partners coordinated the operation. However, after its launch, Trump and his sons publicly moved away from any involvement.
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Chatgpt response: “Trump cryptocurrency earns money mainly by people who buy it and sell. Here’s how:
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Imagine you buy a Trump room when it is cheap.
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Then you sell it later when it becomes more expensive.
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People who create or execute the medal generally earn money from transaction costs (when someone buys or sells) and sometimes selling parts themselves.
Basically, Trump cryptocurrency could earn money For people, if the price increases, but it’s risky – prices can increase or drop quickly. »»
It is a precise ventilation of the functionality of the cryptocurrency. However, Chatgpt does not explain one of the greatest risks in investment in coins, which is the traction of the carpet. It is at this time that the developers of the part guarantee a large number of parts at a low price. Once the public is starting to buy parts and increases the value, the developers quickly exchange their assets of great value and abandon the project, leaving other investors without anything.
“Here is the thing: Donald Trump has nothing to do with this cryptocurrency. Even if she bears his name, he is not involved, and he does not make money. The people behind are those who make money when the price of the room increases, but Trump himself has won anything,” said Chatgpt.
While Chatgpt is categorical that Trump had nothing to do with the medal and made no profit, the truth is difficult to say. Some sources of information say that the entire project is a scandal, but no accusation has been filed.
Chatgpt said: “The value of cryptocurrencies, including Trump, is super sensitive to what is happening in the world economy. If people feel good with money and want to take risks, the price of the crypto can increase. But if people are afraid of losing money, the price can drop.
Things like inflation, interest rates or government decisions can affect the amount of people who are ready to pay for Trump or other cryptocurrencies. When the economy is doing well, people could feel more comfortable buying coins. But when things are trembling, they could sell and lower the price. »»
Chatgpt is right on the Connection between the economy and cryptocurrencies. For example, look at what happened during COVID-19. The US government has issued citizens recovery to try to strengthen the economy. This has led many new buyers to take a risk with the “free” money they had received and try the cryptocurrency. The government has published three recovery checks between March 2020 and March 2021. For Bitcoin, on February 29, 2020, its price opened at $ 8,671.21. And on April 1, 2021, after all recovery checks, the Bitcoin price opened at $ 58,926.56.
For his final response, Chatgpt replied: “Here is the important part: cryptocurrencies are risky. Just as if you were to invest in actions or other things, Trump’s price can change very quickly, and sometimes it can drop a lot. There is also the fact that Trump is not more popular or well known than large cryptocurrencies like Bitcoin, so it cannot be more risky.
If you are thinking of investing in Trump, ask yourself:
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What do I understand in what I invest in?
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Can I manage it if the price drops?
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Is it just a fun thing, or will I think it is worth more in the future?
It may not be the best idea to put all your money in something like Trump, Especially if you don’t know much about cryptocurrencies. But if you just have fun with a small amount, it does not matter – do not expect it to be a guaranteed way to earn money. “”
Remember that investing in the cryptocurrency or the pieces even is particularly risky. If you don’t know if it’s a good idea, talk to a finance professional before making investments.
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This article originally appeared on Gobankingrates.com:: I asked Chatgpt to explain the Crypto Trump as if I am 12 years old: here is what he said
