In this article, we will delve into the Cantillon effect and explore how it contributes to wealth inequality. We will discuss the mechanics of this phenomenon, its implications for society, and most importantly, provide insights into what you can do to protect yourself from its effects.

Introduction to Richard Cantillon and the Cantillon Effect

The term Cantillon effect is named after the Irish-French economist and banker Richard Cantillon. His book “Essay on the Nature of Trade in General” (Essai sur la Nature du Commerce en Général), published in 1755, is considered the first complete treatise on economy. It describes many economic concepts, including monetary theories, cause and effect methodology, monetary theories, and the development of spatial economics. In this essay, Cantillon emphasized the pivotal role played by entrepreneurs in driving economic activity. These entrepreneurs are described as a diverse group encompassing traders, innovators, and merchants who are willing to undertake risks in pursuit of profit. The central theme underscores their significance as risk-takers who actively contribute to economic growth and development.

This perspective is crucial to understanding another key aspect of the essay—the non-neutrality of money, often referred to as the Cantillon Effect. This phenomenon delves into the dynamics of how newly created money enters an economy. The individuals or entities responsible for the creation of money play a decisive role in determining when and where it enters the economic landscape. This includes considerations such as which sector or industry it flows into, the intended purposes (such as asset purchases, consumer spending, or business expansion), and, perhaps most significantly, which individuals or entities are the beneficiaries of this newly created money.

What is the Cantillon Effect

The Cantillon effect describes the uneven expansion in the economy when new money is introduced into a system. This effect begins with the introduction of new money to the economy, often by a central authority like a central bank or government. The new money is infused into the economy through various conduits, such as bank loans, governmental expenditures, or central bank acquisitions. However, the transfer of this newfound money is not made uniformly. The money flows through the economy in a tiered structure, and those who acquire it first will have an advantage over all others. Certain individuals and entities, predominantly those closely entwined with the financial system or government, take possession of the money in its infancy. This “first tier” encompasses financial institutions, government beneficiaries, bureaucrats, and those involved in the decision-making process of monetary policy. These individuals utilize this new money to procure assets like financial assets (stocks, bonds), real estate, and commodities.

A passive income source is like having a money tree that doesn’t need constant attention. It’s about finding smart ways to make your money work for you, even when you’re getting your beauty sleep. So, let’s explore seven easy ways you can make money while you sleep – from tech tricks to real estate magic. Don’t worry, it’s easier than it sounds, and by the end of this article, you’ll have some great ideas to start growing your own money tree, one snooze at a time!

What is a Passive Income?

Passive income is all about making smart plans that keep bringing in money, even when you’re not working on it all the time. Imagine making money while riding waves at the beach or exploring new places – that’s the magic of passive income.

Now, let’s take a closer look at how passive income works. It’s not like a regular job where you trade time for money (active income stream). Instead, it’s about creating something valuable – like a rental property, an online course, or even selling things through affiliate links – that keeps putting money in your pocket without you having to be there all the time. In other words, it gives you financial freedom, without having to worry about regular work.

Sure, you might need to put in some work upfront. Think of it like planting seeds in a garden. You write that book, build that software, make those videos, or make an initial investment in real estate – all before the money starts rolling in. It’s a bit like waiting for something good – you work hard now so you can enjoy the rewards later. So, while it might not be as easy as it sounds, the great thing is that once you’ve set up a passive income source, you can relax and watch the money come in, no matter where you are or what you’re doing.

Passive Income Ideas to Make Money While You Sleep

Here’s our comprehensive list of passive income ideas that will allow you to make money while you sleep. With these innovative strategies, you can break free from the traditional 9-to-5 routine and start generating income in a more flexible and autonomous manner.

Idea #1 – Participating in Sleep Studies

One way to earn money while you’re sleeping is by literally going to sleep. Yes, you can make money in your sleep by being part of a sleep study. Different universities, healthcare providers, mattress brands, and hospitals have whole departments dedicated to sleep studies, researching how we sleep and how we get better sleep. You can actually get paid to be part of these studies.

Now, how do you find these studies that you can participate in? You can go on different websites to find these studies, but you can probably just look up different hospitals around your area to see if they have any studies going on. For example, you can go on a website like Mayo Clinic or a hospital in a specific area and travel there to get paid for their sleep studies. Another website is clinicaltrials.gov, where you can find different studies that you can be a part of as a trial participant.

Another interesting study you could take part in is conducted by the popular Harvard Sleep Division. If you simply search for it on Google, you’ll easily find their website and gather more details about how you can join their sleep studies. Various hospitals or universities focus on specific types of sleep studies for different reasons. For instance, if you struggle with sleep, they want to investigate that. Similarly, if you have no sleep problems, that’s also something they’re interested in studying. So, these studies differ based on factors like your age, weight, any existing health conditions, and other considerations that determine which study you qualify for.

Now, some of these sleep studies might have certain requirements that could be a bit challenging. For instance, if you’re used to falling asleep with the TV on or scrolling through your phone, many of these studies won’t allow such distractions. You’ll need to sleep according to their instructions, especially if they’re studying disrupted sleep patterns. Additionally, you might need to wear certain devices during sleep, which could feel a bit odd or uncomfortable. On the bright side, you can take part in these sleep studies either from the comfort of your home or at a specific location, like a hospital, depending on the study’s design.

Payment and study duration can vary depending on the specific study. For example, Harvard’s website presents a range of studies. One such study focuses on untreated sleep apnea for individuals aged 21 to 70. It involves an initial screening visit, overnight stays, and a payment of $400. If you’re up for a more extended commitment, they offer a 33-day research study that could potentially earn you as much as $6250.

This unique opportunity allows you to essentially earn money while you sleep, and although specific requirements and schedules may apply, it offers a great passive income source.

Idea #2 – Renting Unused Space for Storage

Another way that you can make money passively in your sleep is by renting unused space in your house or apartment. Let’s say you have extra space in your garage that you’re not using or a spare closet in your home – well, you can actually get paid for those empty spaces. A good website to find information about this and to sign up for renting a space is neighbor.com. On this website, you can rent out things like your garage, driveway, parking lot, basement, bedroom, shed, carport, attic space, unpaved lot, and more. For instance, if you have a two-car garage but only one car, you can utilize the extra space for storage. If you have available spaces like these, it’s a simple way to earn money by providing storage solutions. All you need to do is open the door for someone, let them store their items, and communicate when they need access to their belongings. This site also offers you insurance coverage, ensuring your belongings are safe and secure. It’s a hassle-free way to make passive income and requires minimum investment as you get the chance to earn with the unused space you already have in your home.

Idea #3 – YouTube

The third way you can make money passively while you sleep is by engaging with online platforms like YouTube. Although it requires a substantial initial effort to establish your online presence, whether through a blog, YouTube channel, Instagram, or TikTok, conducting research, and experimenting with various niches and topics, the groundwork might take a few months or even a year or two. Yet, once you’ve built momentum, you can start earning money as you sleep. For example, as a YouTuber, you can generate income from videos created years ago on your channel. The top-performing videos of the channel, even if they were made many years ago, will continue to generate revenue for you. Even on days when you don’t produce or publish content, you will still be earning income from videos you’ve made in the past. YouTube compensates you for your videos, and the beauty of being a content creator is that if you have a highly popular channel with over 10 million subscribers, you could hypothetically take a break from video production for a year. While your views and earnings might decrease, you’ll still be earning income for an extended period, possibly even indefinitely. This continuous income stream persists until external factors, like YouTube’s policy changes or shifts in viewer engagement, intervene. However, such occurrences are unlikely, making being a YouTuber a promising avenue for generating passive income, even while you sleep.

Idea #4 – Investing in Startups

The fourth way to earn money passively while you sleep is through startup investments. You don’t need specific connections; all you require is some research or existing knowledge in a particular area. If you’re well-versed in a certain field, you can explore startups within that domain for potential investments. A platform like republic.com facilitates this process, allowing you to discover various startups and contribute as much or as little capital as you prefer. Startup investment offers flexibility, with varying entry points and niches. For example, if you have expertise in real estate investments, you can explore tech-focused real estate startups and start an investment portfolio with the site. While startup investments might not yield immediate results, they offer the potential for long-term growth. Returns may materialize later as the company flourishes. Alternatively, some startups might offer quicker returns, similar to a short-term loan repayment structure within a year. Furthermore, you might obtain equity in certain companies, and your payout could correspond with subsequent funding rounds. This multi-layered approach allows you to tailor your investment strategy to your preferred payout structure, niche, and company choices. But remember, this passive income idea will require an initial investment – one that is larger than what we’ve discussed for the passive income ideas so far.

Idea #5 –Earn through Apps

The fifth method for generating passive income while you sleep involves using apps. A prime example is Nielsen, a prominent company specializing in data tracking across smartphones and computers. By simply downloading their app, you can earn money while they monitor your phone or device usage, including app downloads and overall activity. This app typically yields around fifty dollars every six months or yearly, offering a modest yet consistent income stream. Additionally, participating in this program enters you into monthly sweepstakes with prizes potentially reaching up to ten thousand dollars. The website computermobilepanel.nielsen.com provides a platform for signing up and downloading the app. While some may have privacy concerns regarding data tracking, it’s important to note that many apps, including those from Google, already collect data about user preferences and locations. Opting for compensated data tracking through apps like Nielsen offers an opportunity to receive payment for this information while addressing potential privacy concerns.

Idea #6 – Investing in Real Estate Properties

Our sixth avenue to generate passive income is a more traditional route involving real estate investments. Imagine you own a rental duplex property. Initially, you conducted research and made necessary updates upon acquisition. Now, the property consistently brings in rental income without your direct involvement. Every month, income flows in, no matter if you decide to make additional improvements. Of course, you make sure the property stays in good shape to keep your tenants happy. Whenever there’s a maintenance request, you quickly arrange for repairs – it’s all manageable with a few phone calls. The best thing about owning real estate properties is their passive nature. Once you’ve set up the groundwork and made enhancements, property management can largely be handled online, leading to steady streams of income. This is why real estate investments are a great way to earn a passive income source.

Idea #7 – House Sitting/Pet Sitting

The final approach to earning passive income while you sleep involves house-sitting or pet-sitting. If a family is away on vacation or for work, you can step in to help with various tasks around their home. House sitting may not always require overnight stays; sometimes, you only need to be present during the day. Additionally, you can offer pet sitting services, tending to the needs of dogs, such as feeding, walking, and bathing. trustedhousesitters.com is a platform where you can create a profile to connect with homeowners seeking house sitters. Some arrangements might even provide you with accommodation, allowing you to reside in a separate apartment on their property while being compensated for maintaining the house or property. This is an effective way to generate income while you sleep, whether you’re physically on-site or managing tasks from your own home. Your responsibilities could range from turning lights on and off to starting a car in the garage.

Conclusion

Now that you’ve discovered several practical ways to make money while you sleep – from participating in sleep studies to investing in startups and real estate investments – it’s time to take action. Don’t worry; it’s easier than it might seem. By applying these ideas, you’ll be well on your way to earning an extra income. So, go ahead and explore these opportunities, and who knows, you might just find yourself reaping the rewards of passive income sooner than you think. Sweet dreams of financial freedom await!

If you enjoyed this article then you may also like to read our article on AI-Powered Side Hustle Ideas.

These AI-powered side hustles leverage intelligent algorithms and machine learning to create innovative products and provide valuable services. Whether you’re a writer, marketer, virtual assistant, or entrepreneur, the world of AI-powered side hustles offers endless possibilities. By combining human creativity with AI’s abilities, individuals can automate tasks, process data, and discover hidden revenue streams. So, if you’re ready to embrace the future and explore AI-powered side hustles, you’re in for an exciting journey of discovering new possibilities, generating income, and making an impact.

Various Services You Can Offer

AI can be integrated into your workflow to offer the following services to your clients:

1. Freelance Writing

You can easily use AI content generation tools like Jasper.AI, ChatGPT, or Copy.AI to create captivating blog posts, articles, or website copy. Freelance writers can charge between $0.10 to $1 per word. Search engines prioritize high-quality and valuable content, and AI writing should be used in a way that achieve this outcome.

2. Copywriting Services

In the world of copywriting, you’re not just writing – you are persuading, influencing, and making a difference with your words. With AI tools by your side, you can attract clients looking to captivate their audiences and convert them into loyal customers. These tools will become your personal brainstorming buddy, assisting you in creating compelling ad copy, intriguing product descriptions, and engaging email newsletters.

3. Content Creation

With the help of AI tools, you can kick-start a side hustle in content creation. Imagine having a blog that covers the latest trends, thought-provoking articles, and captivating stories. AI tools like ChatGPT generate unique and engaging content, serving as your co-author that never runs out of ideas. Whether you have a knack for marketing or access to clients in need of constant content, this side hustle offers flexibility and the potential to work from anywhere in the world.

4. Language Tutoring with AI Assistance

If you’re multilingual, you have a unique advantage for a side hustle in language tutoring. ChatGPT assists you in formulating language lessons, quizzes, and practice conversations for your students. With AI-powered tools, you can make language learning interactive and enjoyable. By helping people around the world learn new languages, you break barriers and foster connections.

5. Virtual Assistant Work

ChatGPT can also acts as a digital secretary, helping you manage emails, schedule appointments, and draft official documents. This side hustle is ideal for business owners and professionals seeking assistance with administrative tasks. By providing virtual assistant services, you help others stay organized and efficient while employing AI to accomplish their routine recurring tasks.

6. Ebook Writing

With AI tools like ChatGPT, you can venture into the realm of ebook writing. Draft chapters on any topic of your choice, be it a self-help guide, cookbook, DIY manual, or sci-fi novel. The possibilities are limitless. Once your ebook is published and sold, it can become a source of passive income. This side hustle allows you to share your knowledge, passion, and creativity with the world.

7. Resume Writing Services

By leveraging AI tools like Resume Worded or Skillroads, you can offer resume optimization services. These tools help improve content formatting and keyword targeting for job seekers, increasing their chances of landing their dream jobs. With your expertise, you can charge a premium for your services, earning anywhere from $50 to $500 per resume.

8. Predictive Analytics for Decision Making

Businesses can benefit from predictive analytics to forecast sales, optimize pricing strategies, and manage inventory effectively. AI tools like DataRobot or RapidMiner provide insights and data-driven recommendations. By offering this high-demand service, you can expect a good pay day.

9. Enhanced Video Editing

Utilize AI-powered video editing tools like Runway ML or Wisecut to streamline the editing process and reduce manual labor. Delivering high-quality videos with stunning effects can earn you $2,000 to $6,000 per project. Video editors typically charge between $25 to $150 per hour for their services.

10. Keyword Research

Help businesses enhance their SEO strategies by providing comprehensive keyword analysis using AI tools like Surfer SEO or Clearscope. By offering keyword research services, you can charge between $250 to $2,500 per project. With monthly earnings ranging from $1,000 to $5,000, you can assist clients in driving more organic traffic to their websites.

11. App Development

Create innovative AI-powered mobile apps by integrating machine learning, image recognition, or personalized fitness features. Using a framework for building deep learning models, such as TensorFlow or PyTorch, you can develop apps that cater to specific client needs. Charging between $50 to $150 per hour, you can earn $5,000 to $15,000 per project.

12. Sentiment Analysis for Businesses

With this side hustle, you can help businesses understand customer opinions and make data-driven improvements through monthly sentiment analysis reports. AI-driven tools like MonkeyLearn or Brand24 assist in analyzing sentiments. With prices ranging from $500 to $5,000 per month, sentiment analysis services can be a lucrative side hustle.

13. Social Media Management

You can offer monthly social media management packages to clients, including content creation, scheduling, and analytics reporting. Utilize all-in-one tools like Buffer, Hootsuite, or Sprout Social. With prices ranging from $500 to $2,000 per client per month, social media managers can earn $4,000 to $20,000 per month, depending on the scope of projects and client base.

14. Personalized E-commerce Recommendations

Develop AI-powered recommendation engines for e-commerce websites using tools like TensorFlow or PyTorch we mentioned earlier. These engines increase average order value and enhance the shopping experience. Charging between $3,000 to $20,000 for developing a recommendation engine, you can earn $4,000 to $12,000 per month.

Art-Based AI Side Hustles

In this section, we will discuss the art-related services that you can offer to your clients:

15. Graphic Design Services

You can easily utilize AI-powered design tools like Canva or Adobe Express to create visually appealing graphics, logos, or promotional materials for clients. Graphic designers can charge between $25 to $150 per hour, with monthly earnings ranging from $2,500 to $7,500. Your creativity and expertise in graphic design will allow you to deliver premium designs.

16. Sell Clipart and AI Graphics

With the help of AI, you can create and sell clipart and graphics through platforms like Etsy. Using AI, you can generate unique designs even without extensive design skills. Tools like Mid-Journey and Stable Diffusion can assist in generating ideas and creating custom art. You can upscale the designs, remove backgrounds, and offer high-quality clipart and AI generated graphics that customers can purchase from your store.

17. Sell Wedding Invitation Templates

Leveraging AI and platforms like Etsy, you can design and sell downloadable wedding invitation templates. By utilizing above mentioned tools such as Mid-Journey and Canva, you can easily create customizable templates that buyers can personalize for their special day. Removing text and adding customization options allow customers to create unique wedding invitations without requiring graphic design software.

You can use this same method to create and sell any other Canva template you like.

18. Product Mock-ups

Product mock-ups are highly effective in showcasing products to potential buyers. Using tools like Mid-Journey and Canva, you can create product mock-up templates that display artwork or designs in real-life settings. Sellers can offer these digital mock-ups, and customers can overlay their own artwork on top, enabling them to visualize how the final product would look.

19. Printable Art

AI has made it easier for people to become artists and sell printable art. By using Stable Diffusion or Mid-Journey, you can generate beautiful art pieces, such as watercolor paintings or digital illustrations. Upscaling the resolution ensures that customers can print the art in various sizes. With a digital file, customers can purchase and download the artwork to print it themselves or have it printed professionally.

20. Digital Paper Design

Digital paper, which consists of patterns, gradients, and graphics, has gained popularity among digital artists and crafters. Mid-Journey can help generate unique designs, such as steampunk gears or beloved cartoon characters that can be seamlessly tiled. Digital paper can be sold as downloadable files that customers can use for printing or digital projects, offering a versatile product with high-profit potential.

AI Side Hustles: FAQ

How Do You Use AI as a Side Hustle?

As we discussed above, AI can be used as a side hustle in various ways, including content creation, virtual assistance, copywriting, language tutoring, eBook writing, design and graphics, video editing, business analytics, SEO and keyword research, and social media management.

Who Owns an AI-Generated Art?

The ownership of AI-generated artwork is frequently a subject of contention involving multiple parties. The dispute may involve the AI system itself, the individuals or companies responsible for developing the algorithms used in the AI, and those who commissioned or trained the AI.

According to copyright law, only humans can be granted copyrights. If it’s created by AI, nobody can claim ownership of it or copyright it.

Can You Publish AI Art as Your Own?

As long as you follow the rules and terms of the AI-generator tool you use, you can publish and sell your AI-generated art without facing any legal problems. Just remember to do some research and carefully read the tool’s license agreement before selling your artwork.

Where Can I Sell AI Art?

When it comes to selling art, there are several platforms that cater to artists and provide opportunities to showcase and sell their work. Here are some of the best sites to create your art store:

• Etsy: Known for handmade crafts, Etsy is a great platform to sell unique AI art. With a large customer base and user-friendly interface, it’s easy to set up shop and start selling your art.
• Redbubble: Redbubble offers customizable products and a diverse product line. Artists can create custom designs to be printed on various items. The artist dashboard provides real-time insights into sales and earnings.
• Society6: Society6 allows artists to sell their AI art on different products like prints, phone cases, and home decor. It offers customization options and takes care of printing, shipping, and customer service.
• Saatchi Art: Saatchi Art is a platform that caters to art enthusiasts and collectors. Artists can showcase their AI art and connect with potential buyers. The platform provides features like art advisory services, secure payment processing, and free shipping options.
• Zazzle: Zazzle allows artists and designers to monetize their creativity by creating and selling customizable products. The user-friendly interface and intuitive design tools make it easy to set up a store and manage orders.

What are the Best Free AI Tools to Generate Content and Art?

Here are some of the best free AI tools to generate various types of content, including images, text, and videos.

1. To generate text: ChatGPT, Quillbot, Google Bard, Bing AI, Hivemind, Conch AI, Compose AI
2. To generate images: DALL·E 2, WOMBO Dream, Stable Diffusion AI, NightCafe
3. To generate videos: Kaiber AI, Runway AI, Lumen5, Pictory, Wave,Video

Conclusion

In conclusion, Whether you’re a writer, marketer, virtual assistant, or entrepreneur, AI opens up endless possibilities for content creation, automating tasks, processing data, and discovering hidden revenue side income streams. Don’t hesitate to combine your unique skills with AI’s capabilities and start your AI-powered side hustle today!

If you enjoyed this article then you may also like to read our Introduction to Midjourney and Dall-E 2.

From its humble beginnings to its explosive popularity, Vine captivated millions of users and showcased the power of brevity and creativity. However, despite its early success, Vine faced challenges and ultimately met its demise. In this article, we delve into the fascinating rise and eventual fall of Vine, examining the factors that contributed to its decline, including increased competition from other platforms and limitations in monetization opportunities for content creators. By understanding the journey of Vine, we gain insights into the ever-evolving nature of social media and the constant quest for innovative ways to capture our attention.

Check out our case study on TikTok, the successor to Vine.

What is Vine?

Vine was a social media app that allowed users to share six-second videos with their followers. Although six seconds sounds very restricting, it was this time limit that forced users to be creative and was a big reason why Vine was so unique. Vine was extremely popular back then, and many people still don’t know why it was discontinued. In fact, many people believe that Vine played a big role in shaping the social media landscape as we know it today.

The Vine app was founded in June 2012 and was first released on January 24, 2013. The app was developed by Dom Hofmann, Rus Yusupov, and Colin Kroll, who had all previously worked at Twitter. Twitter saw its potential before its launch and bought it in 2012 for 30 million dollars.

Popularity of Vine

The idea behind the Vine app was to create a platform allowing users to share short videos with their friends easily. The app became more popular as time passed, and people began using it to post funny skits and jokes. At its peak, Vine had over 200 million active users, and over 41% of American teenagers were estimated to be using the app. Vine was especially popular with celebrities and brands, who used it to share short, funny videos with their followers. Vine’s social network allowed users to share their videos not only within the app but also on other popular social platforms like Facebook and Twitter. The Vine app provided a browsing experience where users could explore a collection of videos grouped by themes with the intention of creating trending content.

Vine attracted a diverse range of people who used the platform for various purposes. Celebrities like Logan Paul, King Bach, Lele Pons, and Jerome Jair had some of the most popular accounts on Vine. They amassed millions of followers and were instrumental in creating iconic Vines. It became a hub for short-form comedy, music performances, video editing, and stop-motion animation. Notably, on February 1, 2013, a Turkish journalist used Vine to document the aftermath of the 2013 United States embassy bombing in Ankara, showcasing the platform’s potential for real-time reporting and documentation.

Vine also found its place as a promotional tool. In 2013, Daft Punk revealed the track listing of their album Random Access Memories through a Vine video, leveraging the platform’s concise format for creative announcements. Furthermore, on September 9, 2013, Dunkin’ Donuts made history by becoming the first company to air an entire television advertisement in the form of a single Vine. This innovative approach demonstrated Vine’s appeal as a marketing channel. Another significant milestone occurred on April 1, 2014, when A&W Restaurants utilized Vine to launch its Mini Polar Swirls, making it the first product launch on Vine.

However, despite its widespread popularity, on October 10, 2016, Twitter announced the discontinuation of the Vine app, and the app was officially shut down on January 17, 2017. This decision came as a significant blow to the dedicated Vine users who had relied on it for entertainment and creative expression.

Reasons for the Fall of Vine

Financial Problems and Moral Dilemma:

The main reason behind the fall of Vine was, unsurprisingly, money. The platform faced twofold financial problems. Firstly, there were challenges in funding the app itself, as it required ongoing investment for maintenance, updates, and infrastructure. Secondly, Vine struggled to provide a sustainable source of income for its creators, who needed to earn a living within the service.

On the side of the app itself, Vine faced an issue of morals. The creators had a strong desire to keep the platform as ad-free as possible. They aimed to maintain the integrity of the user experience and preserve the unique content-driven nature of Vine.

Difficulties with Sponsored Content:

Another challenge Vine encountered was the difficulty of incorporating sponsored content within its six-second timeframe. Vine’s short video format demanded concise and creative storytelling, making it a challenge to seamlessly integrate promotional material. Despite the ambitious nature of Vine, only a few companies stepped up to the challenge. Dunkin’ Donuts was the first to deliberately create an ad in Vine format, airing it on TV before a Monday Night Football game in September 2013. While Dunkin’ Donuts continued to post ad-like videos on its Vine account, only a few others followed suit.

Limited Opportunities for Content Creators:

For users regularly posting content, Vine presented significant hurdles to turning their passion into a viable profession. The platform offered little room for brand collaboration or endorsement opportunities, leaving content creators with limited avenues to monetize their work. Unlike platforms like YouTube, which had revenue-sharing schemes, Vine did not provide a direct way for creators to earn income from their content. As a result, content creators often treated Vine as a side endeavor and began considering migrating to platforms that offered more sustainable revenue models, such as YouTube.

Failure to Meet Market Demand:

Vine started as a microvlogging platform but transformed into an entertainment media platform after its launch. Most users were passive viewers, consuming content from a minority of active creators. The success of Vine relied on keeping these creators engaged, but Vine failed to meet their needs on two important occasions.

Firstly, Vine stuck to its strict 6-second video length for too long, limiting the ability of creators to experiment with different types of content, such as vlogging. It was difficult to express opinions or ideas in such a short time frame.

Limited opportunities for content creators, discussed above, is another example of Vine’s failure to meet the demands of the market. While Vine was effective for audience growth, it lacked the means to help creators monetize their work, leading them to explore alternatives.

Increasing Competition:

Vine’s decline was further fueled by intensifying competition from other social media platforms. Instagram and Snapchat both added video-sharing features in 2013 and 2012, respectively. These platforms attracted users with their expanded video capabilities, drawing attention away from Vine. The emergence of these competitors contributed to Vine’s loss of user engagement and growing difficulty in maintaining its position as a dominant video-sharing platform.

Issues with the Parent Company:

Twitter’s strategic move to acquire Vine even before its official launch was driven by its ambition to leverage it for the expansion of its own brand and business. This meant that Vine was not a primary focus for its shareholders, and this became clear when Twitter introduced its own video feature, which made Vine less necessary. It’s not surprising that Twitter executives talked about integrating all of their video solutions, indicating a move away from supporting Vine as a separate platform.

Mismanagement:

Vine faced significant challenges within Twitter, which had a negative impact on the business in ways that may not have been obvious to outsiders. These challenges resulted in difficulties in retaining key executives at Vine. In 2014, two of the founders left, and the third was later laid off, indicating potential conflicts with higher-ups at Twitter. Vine faced a period of inactivity and did not release any significant updates for a year. When there are issues at the top, they tend to affect the entire team, and it becomes difficult to maintain strong leadership and a clear sense of direction and purpose.

TikTok vs Vine

Vine and TikTok often draw comparisons because both apps allow users to share short videos. However, there are notable differences between the two.

Length and Format:

One of the primary differences between TikTok and Vine is the video length. Vine limited videos to six seconds, while TikTok allows users to create videos of up to one minute in length. This extended duration on TikTok enables users to explore more complex ideas, showcase talents, and engage in storytelling.

Features and Editing Tools:

TikTok offers a wide array of features and editing tools that Vine lacked. Users can add filters, effects, text overlays, and background music to their videos, enhancing their creative expression. These features have contributed to the platform’s popularity and have empowered users to produce high-quality, visually appealing content.

Influencer Culture and Content Creation:

TikTok has placed a significant emphasis on influencer culture and content creation. It has actively supported and promoted influencers, providing them with opportunities to gain a large following and collaborate with brands. This has created a vibrant community of content creators on TikTok, with many users aspiring to become influencers themselves.

Discoverability and Algorithm:

Vine primarily relied on user-generated content for discoverability, with users following specific accounts to see their videos. TikTok, on the other hand, employs a sophisticated algorithm that personalizes the content feed for each user based on their interests, interactions, and trending videos. This algorithmic approach has contributed to TikTok’s rapid growth and the discovery of diverse content.

Music Integration:

TikTok has a strong emphasis on music integration, allowing users to easily incorporate popular songs into their videos. This has led to the creation of viral dance challenges, lip-syncing trends, and a robust music community within the app. In contrast, Vine did not have a built-in music library or dedicated music features.

Although Vine is no longer active, we can still find classic Vines online. Many people credit Vine for inspiring future social media platforms such as TikTok. Without Vine, it’s uncertain whether these popular apps would have come into existence. Despite its demise, Vine still has a dedicated fan base that holds fond memories of the app.

Will Vine Make a Comeback?

Recently, Elon Musk surprised many people by tweeting about bringing back Vine, sparking speculation about a possible revival of the app in some form. This tweet garnered attention, especially since Vine had been discontinued a few years ago. Musk’s tweet included a poll, with 69.6 percent voting in favor of bringing back Vine and 30.4 percent voting against it. In response, MrBeast humorously commented that it would be hilarious if Vine made a comeback and competed with TikTok. Musk engaged in the conversation, asking what could be done to make Vine better than TikTok. The speculations regarding whether Elon Musk will actually revive Vine are varied, with some people believing it’s a possibility while others see it as a mere pipe dream. Nevertheless, this buzz and attention surrounding Vine’s potential return are exciting news for all the Vine fans out there.

In conclusion, Vine was more than just a social media app; it was a groundbreaking social media app that left a lasting impact on the social media landscape. Despite facing challenges such as strict time limits for videos, limited features and monetization options, and increasing competition, Vine’s unique format and creative content continue to resonate with its dedicated fan base. The app’s unique and concise format forced users to distill their ideas into bite-sized, engaging videos, sparking a wave of creativity and viral trends. Vine’s ability to capture moments of humor, wit, and talent in just a few seconds made it a favorite among users and propelled many individuals to internet stardom. The recent speculation about a possible revival of Vine adds to its enduring popularity. Regardless of its future, Vine’s legacy as a pioneering platform will be remembered and celebrated.

Firstly, the challenging process of mining gold and extracting it from the ground naturally limits its supply, effectively keeping inflation in check. Additionally, gold’s distinctive color, weight, and malleability make it difficult to counterfeit, ensuring its authenticity. The relative scarcity of gold allows for the storage of significant wealth within a compact space. Moreover, its resistance to corrosion, rust, decay, or rot means that gold can preserve wealth indefinitely, with time posing no threat to its value. All these factors make gold a valuable precious metal investment, especially in times of economic instability. In this article, we’ll discuss various aspects of investing in gold, from the different forms of gold investments to the factors that affect the price of gold.

Why Invest in Gold?

Our existing monetary system is based on fiat money, which includes currencies like the dollar, pound, euro, and yen. This system relies on ledger money, which is basically digital records of account balances and transactions held by various financial institutions. Therefore, in this system, money is nothing more than a collection of digital lists maintained by different financial institutions.

In traditional banking, the money we deposit can be subject to potential losses in the event of insolvency. An example is the financial crisis Cyprus experienced in 2013. The Cyprus Bank seized a portion of deposited savings above 100,000 Euros, leaving major depositors with significant losses. Such situations emphasize the importance of having tangible assets like gold, which cannot be easily seized or devalued.

There are many advantages of gold. Gold serves as a store of value over time. Gold has historically served as a hedge against inflation. When economies experience high inflation rates, the value of fiat currencies decreases, while the value of gold tends to rise. By owning physical gold, we retain control over our wealth and protect ourselves from the potential depreciation of fiat currencies. The supply of gold is limited, as it is a finite resource. Central banks cannot simply print more gold like they can with paper fiat currencies.

Gold is money. Everything else is credit

J.P. Morgan

Moreover, holding gold in one’s investment portfolio can provide diversification benefits. Gold often exhibits a low or negative correlation with other financial assets, such as stocks and bonds. This means that when other asset classes may be experiencing volatility or downturns, gold can act as a stabilizing force and help mitigate losses.

How to Start Investing in Gold?

The first step in investing in gold is to buy highly recognizable gold bars or coins, such as the Canadian Gold Maple Leaf (GML) coins and gold PAMP bars. By choosing these widely recognized forms of gold bullion, you can ensure both liquidity and ease of trade. American Gold Eagle and the Chinese Gold Panda are also popular with gold collectors but it’s important to consider their premiums. Overpaying for gold coins/bars can significantly reduce potential returns on investment. Finding a balance between recognition and cost-effectiveness is important.

When it comes to investing in gold, there are various options available to suit different requirements. One important aspect to consider is the weight measurement, as gold bullions can be purchased in gram, troy ounce, or tola. It’s also worth noting that gold purity is measured in ‘carats’, with 24ct being the purest form of gold. Additionally, investors have the flexibility to choose from various shapes and sizes when purchasing gold bars. Gold coins are another popular option, commonly available in troy ounces and fractions of that such as half an ounce or quarter of an ounce. To get more money for gold bars or biscuits, buy ones that come with an Assay Card or Certificate of Authenticity (COA). This proves their authenticity and increases their value in the future.

Things You Should Know About Gold Prices

When investing in gold, there are two prices you should know: the spot price of gold and the physical price. The spot price is the price of gold being traded in the Futures Market, also known as paper price. The physical price includes the spot price plus the physical premium.

The physical premium represents the cost of extracting gold from gold mines and refining it into coin and bar forms. You should always try to minimize this premium because it directly impacts the potential return on investment when selling gold. There is no guarantee of recovering the premium when selling your gold, so it’s best to pay the lowest possible premium. Canadian Maples and PAMP bars are generally gold options with low premiums. Another option with a low premium is the gold Britannia coin from the United Kingdom.

Always consider purchasing physical gold in one-ounce or larger increments. Although gold prices may be higher for larger bars, the physical premiums decrease. For example, a one-ounce bar may have a premium of 4%, while a 100-gram bar could have a premium as low as 2%. Opting for larger bars can result in significant savings when steadily building a physical gold portfolio.

Avoid purchasing quarter-ounce coins or one-tenth of a gold coin, as their premiums are unreasonably high, ranging from 10% to 50%. Additionally, decorative coins or bars, such as limited-edition collectibles, often have higher premiums (around 8% to 9%). While they may look appealing, they are more suited for collectors rather than investors.

Why Invest in Gold and Not Silver?

Both gold and silver are precious metals (PMs) and investment options. But it’s important to understand their differences.

Gold has a long history as a primary monetary asset and is known as a good store of value. It is a safe haven during economic uncertainties. In contrast, silver is more closely tied to industrial use, with over 70% of its demand coming from industrial applications in 2021. Some argue that silver is more of an industrial metal than a precious metal. The demand from industries significantly influences the price of gold; therefore, the price of silver is somewhat tied to the global economic outlook.

During major stock market crashes, gold has showed its resilience, with an average appreciation of 6.5%, while silver experienced a significant decline of 16.4%. This highlights the contrasting behavior of the two metals. Different factors than those affecting silver influence the price of gold. Therefore, gold tends to hold stronger during market downturns compared to silver.

Another important aspect to consider is the premiums associated with physical silver. Compared to gold, physical silver has higher premiums. While an ounce of physical gold may have a premium of around 3-4%, an ounce of silver tends to have premiums as high as 20% or even 30%, depending on the brand. Selling silver back to dealers may result in the loss of a significant portion of the premium. This difference in premiums adds an additional cost to investing in silver.

What Drives Gold Prices?

Understanding the factors that drive gold prices is essential for investors. Several elements can influence the price of gold, ranging from geopolitical events to supply and demand dynamics.

The debasement of global fiat currencies, particularly the U.S. dollar, plays a significant role in the price of gold. As gold is priced in dollars, an increase in the supply of dollars can have an impact on gold prices. For instance, during severe recessions, central banks like the US Federal Reserve may print trillions of dollars to stimulate the economy. COVID-19 stimulus check issuance is one such recent event. Printing money out of thin air and dropping them to the market cause massive inflation that’s detrimental to lower and middle class households. This erratic monetary expansion can erode financial trust in paper fiat system, leading people to seek the safety and value preservation offered by gold. The influx of demand for gold can drive its price upward, as observed by its rise from $700 per ounce to new all-time highs above $2,000.

Another factor that undermines financial trust is excessive deficit spending by governments. When countries engage in deficit spending, they effectively consume future wealth in the present. This approach is often inflationary and can devalue currencies. For example, the U.S. government’s significant deficit spending, financed through issuing bonds and debt monetization, expands the money supply. This can lead to inflation and dilute the purchasing power of the dollar. Consequently, gold prices rise not because gold is inherently becoming more valuable but rather due to the diminishing value of the dollar. In the past century, the dollar has lost around 97% of its purchasing power.

Gold priced in U.S. dollars has a 92% correlation to Total Federal Debt Outstanding since Nixon closed the Gold Window in 1971

OCM Gold Fund

Wars and sanctions can also have a significant impact on the price of gold. During times of war, there is often an increase in inflation due to the excessive printing of money to fund military activities. War consumes resources such as oil and industrial metals, leading to decreased supply and inflationary pressures in various sectors. Consequently, gold prices tend to rise during geopolitical instability, as it serves as a hedge against inflation and uncertainty surrounding normal financial system.

In addition to wars, sanctions can also affect the price of gold. When countries impose sanctions on others, assets can be frozen or confiscated, creating a sense of insecurity and reducing confidence in traditional financial instruments. This realization has led countries, particularly those affected by sanctions, to diversify their holdings and shift towards gold as a reliable store of value. Central banks, in particular, have been increasing their gold reserves in recent years, recognizing gold’s ability to mitigate counterparty risk. For example, when the United States and its allies confiscate Russian central bank assets, it sparked concerns globally. This event highlighted the vulnerability of holding financial assets denominated in US dollar (Like, U.S. Treasury bonds) to involuntary confiscation, violating international contracts and treaties. Central banks around the world, including China, responded by reducing their exposure to U.S. Treasuries and increasing their gold holdings. In 2022, central banks added over 1,100 tons of gold to their reserves, reaching a 55-year high.

The dollar is our currency, but it’s your problem

John Connally – Former US Treasury secretary

The Resurgence of Gold: Why are Central Banks Rapidly Acquiring Gold?

When governing a country, the concept of checks and balances plays a crucial role. In the realm of economics and the financial well-being of a nation, gold reserves act as a check against reckless deficit spending and money printing, which can lead to debt problems and inflation. Such strategies might be employed by a ruling regime as a political ploy to gain votes. Politicians come and go, but the debt they incur to win people over could put entire generations in debt. Bankruptcy of the country Sri Lanka is a good case study for such a situation.

As of this writing, Gold is experiencing a price surge, nearing all-time highs. Central banks have been trying to prevent this surge for a long time (to preserve the value of their fiat paper money), yet they are currently buying gold at a faster pace than in the past 70 years due to the demise of daddy of all fiat currency the US dollar. This trend can be observed by looking at the concentration of gold buying among central banks over the last 30 years. While some central banks sell gold, others are buying it, with Russia, China, Turkey, and India being the biggest buyers.

This recent surge in gold prices follows a pattern seen before, such as in the early 2000s to 2011, when the price of gold experienced a bubble after decades of moving sideways. This previous pattern was also driven by large net central bank gold purchases. The same trend is currently unfolding, indicating the significance of central bank gold purchases in influencing gold price.

According to the World Gold Council, the momentum for central banks buying gold is not slowing down, and 2023 has had the strongest start since at least 2010. The data shows that the net purchases of gold by central banks in the first two months of 2023 have been significant, outweighing any records going back to 1950. This level of gold buying has not been seen for over 70 years, indicating a significant trend. In 1967, a similar surge in gold buying prompted the collapse of the London Gold Pool, which was established to defend the U.S. price of gold at $35 per ounce and maintain the Bretton Woods system. Central banks realized that there was not enough gold to support this system, causing the pool to collapse in 1968. However, the U.S. dollar’s peg to gold remained intact. Central banks then started exchanging their dollars for physical gold, but within three years, the United States was close to running out of gold. As a result, President Nixon closed the gold window, ending the gold standard in 1971.

United States Is Robbing The World With a Worthless Piece of Paper

Bashar Al-Assad – President of Syria

The important point to note here is that central banks were aware of the sovereign debt issue behind the dollar’s peg to gold. The dollar’s status as the global reserve currency was based on its convertibility to gold. When it became evident that the U.S. was at risk of defaulting on its gold-backed debt, central banks rushed to exchange their dollars for gold before the supply depleted. This led to a significant increase in the value of gold holdings. Now, in the present day, central banks are once again buying gold at a faster pace than they did in the late 1960s. This indicates that central banks are anticipating another sovereign debt default, not limited to the United States but also affecting governments worldwide. The immense debt levels of governments leave two options: default through inflation, reducing the purchasing power of the currency, or outright default by not repaying the owed currency. Thus, central banks are acquiring gold as a hedge against potential default and the erosion of currency value.

Why The US Can’t Return To The Gold Standard

The dollar is legally defined as a weight of gold (Gold price per 1 troy ounce). The US Congress has, several times in its history, altered this valuation – Franklin D. Roosevelt devalued the dollar by increasing price of gold ($ value of 1 troy ounce of Gold) from $20 up to $35. Richard Nixon again devalued the dollar by increasing price of gold from $35 to $42. This devaluation trend as of this writing is at ~$2,000 per ounce.

The US Treasury cannot buy or sell gold anymore as it would undermine the value of their fiat dollar and erode trust in the US economy, leaving their gold reserves as symbolic wealth that cannot be used for any meaningful purpose.

The US Treasury’s gold reserves have remained stagnant at 8,133 tonnes since 1980. There is too many dollars relative to physical gold reserve and revaluing gold would cause hyperinflation and loss of purchasing power: 5.3 trillion dollars of Base money (M0) circulating in the US economy divided by 261 million ounces of physical gold that the US Treasury holds, we get a price of over twenty thousand dollars an ounce. This means if the United States wants to back up the US dollar with gold, they will have to revalue the price of gold above 20 grand. Before the reset you needed just $2,000 to buy one ounce of gold, but now you need 20 grand after the reset. To buy the same physical ounce. Under the gold standard, goods, services and assets will be priced in Gold ounces so you can see how worthless the paper dollar notes are in this scenario.

Physical Gold vs. Gold ETFs (Exchange Traded Funds) vs. Gold Mining Stocks

Gold ETFs are investment options that allow you to invest in gold without physically owning gold bars or coins. They work like mutual funds or stocks, but instead of investing in companies, they track the price of gold. When you buy shares of a gold ETF, you are essentially buying a portion of the fund, which holds physical gold as its underlying asset. Gold ETFs can be a convenient and useful way to gain exposure to the price of gold, although holding physical gold is often considered the best option.

Gold mining stocks is another way to get exposure to gold markets. Gold mining stocks have the potential to offer higher returns than physical gold or gold ETFs. This is because mining companies can generate profits beyond just the increase in gold prices. Some gold mining companies pay dividends, providing additional income for investors.

Here are some points to consider regarding gold investment in general:

1. Affordability and liquidity: ETFs and Gold mining stocks allow investors to access gold without having to purchase its physical form and deal with premiums. They offer the flexibility to buy and sell shares instantly, similar to trading stocks, providing liquidity and ease of transaction.

2. Cost considerations: While physical gold may have premiums associated with it, ETFs charge management fees. Investors should compare the costs of physical gold (including premiums) with the management fees of the ETFs to determine the most cost-effective option for their investment size and goals.

3. Assessing market conditions: Comparing the price of gold to stock market indices can provide insights into relative valuations. For example, a historically high ratio may suggest that stocks are overpriced compared to gold. Investors with holding power may consider waiting for the ratio to narrow before selling gold for income-producing stocks.

4. Diversification and inflation protection: Gold serves as a diversification tool and a hedge against inflation. However, since gold does not generate income or dividends, investors may consider reallocating their gold holdings to other income-producing assets, such as real estate, if attractive opportunities arise.

Conclusion

Ultimately, the decision to invest in gold ETFs or physical gold depends on individual preferences, financial circumstances, and investment goals. It’s important to evaluate the costs, liquidity, personal objectives, market conditions, and diversification needs when considering the appropriate approach to investing in gold.

Gold is all about storing your wealth outside of the traditional fiat money system and leaving a legacy for generations to come. Consider this scenario: If your grand parents left $3,500 back in 1970 in a safe then that money can’t even buy the wheels on a car today. If they had converted that money into 100 gold coins and left them in the safe then today you would have almost $200,000 that can be used as a down payment for a new home or a Ferrari!

What are CBDCs

Central bank digital currencies (CBDCs) are a virtual form of digital currency that is issued and regulated by a country’s central bank. They are a new form of digital currency that is being explored as a potential alternative to traditional physical currency and electronic payment methods. This means that instead of carrying around cash or using electronic payment methods like credit/debt cards, these digital currencies will allow people and businesses to make and receive payments electronically using a digital wallet version of the currency. CBDCs typically operate on a blockchain system or digital ledger, which allows for secure and transparent transactions.

Around 70 percent of all central banks worldwide are now engaged in some kind of CBDC research. Some countries like China, Nigeria, and the Bahamas have already implemented some form of CBDC in their economy. Some other countries are planning to launch their pilot CBDC programs this year (2023). BRICS nations are also exploring ways to introduce gold and commodities backed CBDC.

US Federal Reserve is currently looking into a potential Central Bank digital currency. In fact, Federal Reserve has already announced FedNow, a 24/7 instant payment network, to be released in July 2023. Most see it as a laying ground for a CBDC. This means that the Federal Reserve would not need to print physical money but would instead issue a cryptographic representation of the currency in electronic form. Unlike proposed commodity-backed or gold backed currencies such as digital Yuan or digital Ruble, American CBDC will be backed by the credit of the US government, just like its traditional physical currency. The value of US Dollar is based on American government’s guarantee to fulfil its enormous debt obligations and the world reserve currency status it enjoy at the moment, rather than any inherent utility or intrinsic worth (like gold). Therefore, American dollar CBDC is essentially the same fiat currency in the digital form.

For countries in debt or unpopular governments, CBDCs could give unprecedented power to control public unrests. We have already seen glimpse of that when Canadian government decides to freeze bank accounts associated to trucker protesters. Recently, the UK has denied bank access to Nigel Farage, one of the leaders of the Brexit movement.

In contrast to CBDCs, electronic payment methods like credit cards and Venmo are not backed by the government. These methods are typically used to make payments between commercial banks or through payment transaction providers.

Central bank digital currencies are also different from cryptocurrencies. Cryptos are community-driven projects and typically not backed by anything but hype. Unlike cryptocurrencies, CBDCs are issued by a central bank and get their value from its gold/commodity backing or trust in the issuing government, limited to citizens of a country. Cryptocurrencies are not limited by any border, so anyone in the world can purchase or sell them. Cryptocurrencies like Bitcoin operate on decentralized networks and are not subject to the same regulations as traditional fiat currencies or CBDCs. Cryptos are useful instruments to circumvent government crackdowns: Canadian Authorities Struggle to Seize Freedom Convoy’s Bitcoin Donations.

Although the name “CBDC” gives the impression that it’s something technical, modern, and digital, it’s not a completely new concept. In fact, people have been using “BDC” (Bank Digital Currency) for decades. This is how the money we use gets transferred throughout the world. In fact, money is created, invented, and sent into circulation by banks through the act of lending or credit creation.

How Do Banks Create Currency?

This is how the fractional reserve banking system works: When you deposit money in a bank, you are actually loaning money to that bank, and the bank can do whatever it wants with your money, including investing in the stock market and loaning it out at a profit. Fractional reserve lending allows banks to keep only a fraction of your deposit in reserve and loan out the rest. For example, with a 10% reserve ratio, if you deposit $100, the bank can legally take $90 and loan it out, leaving $10 in reserve. However, the bank creates IOUs in the form of bank credit numbers to replace the money it takes, which are essentially currency, even though they only exist in computers. This process repeats as the borrowed money gets redeposited and re-lent, creating more bank credit. Under a 10% reserve ratio, an initial deposit of $100 can create up to $1,000 of bank credit. The majority of our currency supply is created by the banking system through this process, with 92-96% of all currency in existence being created by banks rather than the government.

Therefore, most of the money we use was created by banks through lending. The Federal Reserve acknowledges that paper money is only a small part of the money supply, and over 90% is bank digital currency, even though it’s not referred to as such.

Differences Between CBDC and Physical Currency

CBDCs have several distinct features that make them different from physical currency.

Authority of the Federal Reserve/Central Bank

Unlike physical cash, the Central Bank will have the power to make all decisions related to any CBDCs held by people, and they can do so at any time. CBDCs can have hundreds of features that can be turned on or off by the central bank, depending on the desired outcome. For example, a CBDC can be programmed to expire on a set date or not be usable in certain areas or for specific products.

Easy Tracking of Transactions

Another significant difference between CBDCs and paper currency is that CBDCs are easily tracked. While cash transactions are mostly untracked, CBDCs are centralized, programmed, and controlled by their issuers, which enables them to track all user transactions. While this level of control can help authorities monitor for financial crimes such as anti-money laundering, it also poses a threat to personal privacy.

Impact on Monetary Policy

CBDCs have the potential to change how monetary policy is executed. Unlike traditional monetary policy tools such as interest rate adjustments, which take months to show results, CBDCs can increase or decrease the money supply in seconds. This feature can help the Federal Reserve execute any monetary policy that is deemed necessary and appropriate.

Cybersecurity Concerns

As CBDCs are primarily digital, cybersecurity is a significant concern. Unlike physical cash, which can be held in a safe, CBDCs will be stored in digital wallets, which can be vulnerable to cyber-attacks. Using both digital and hardware wallets can help users protect themselves from possible cyber-attacks.

Types of CBDCs

In broad terms, there are two types of CBDCs: wholesale and retail. To understand the difference between these two types of CBDCs, it’s important to first understand how commercial banks work.

Commercial banks have two types of ledgers: a front-end ledger facing the public, and a back-end ledger used to manage transactions between commercial banks and central banks. The back-end ledger has assets and liabilities like bank reserves, mortgage-backed securities, treasury bonds, and cash. The front-end ledger has assets and liabilities like mortgage loans, car loans, personal loans, and cash.

In the case of Central Bank Digital Currency, they can be broadly categorized into direct CBDC where Individuals have a direct account with the central bank essentially eliminating need for a intermediary and indirect CBDC which are managed through intermediary such as banks. These indirect CBDC can be further categorized into 2 types,

1. Wholesale CBDC, only the back-end ledger and process are replaced with CBDC. These would primarily be utilized by financial institutions.

2. Retail CBDC, both the back-end and front-end ledgers are replaced with CBDC. These are designed to be utilized by individuals.

Why Do Central Banks Want to Use CBDC

Central banks are interested in replacing fiat currency with CBDC for a number of reasons:

Tracking and taxing every transaction:

Converting all cash into CBDC would allow central banks to track and tax every transaction, formalizing the entire economy.

Imposing negative interest rates:

Banning cash would allow central banks to push interest rates into negative territory which can boost economic activity (save less and consume more).

Expiring Currency:

Central banks can implement an expiring currency to incentivize consumption over savings, making sure that people do not hoard currency.

Impose Transaction caps:

CBDC give central authority the power to cap transactions in order to control the flow of currency into an asset class/economic activity.

Impose Transaction taxes:

Transactions can also be taxed at a higher rate to control the flow of currency into certain asset classes. This is useful to discourage certain economic activities.

Keep track of the issued money and control who get to use it:

Anonymity would be completely lost with CBDCs, giving central banks the power to exclude individuals from the financial system, if need.

Implementation of universal basic income:

The programmability of CBDCs would make it easier to implement universal basic income and ensure it is used for its intended purpose. The government could dictate how the currency is used and even enforce substitutions in times of scarcity.

Pros and Cons of CBDCs

Let’s now examine what are the societal advantages and disadvantages of using CBDC for transactions.

Pros of Central Bank Digital Currencies

Convenient electronic payments: CBDCs offer a more efficient and convenient way to conduct transactions compared to traditional payment methods like cash, credit/debit cards, QR codes, and checks. This is because digital payments can be made and received in real time without the need for physical exchange or processing by a third party company. In addition, we can simply make payments using smartphones or other devices, allowing for greater flexibility and accessibility. Overall, transactions are faster and more convenient this way.

Reduce the need for intermediaries: Central bank digital currencies reduce the need for intermediaries such as banks and payment processors that facilitate instant payments. This also speeds up clearing and settlement processes. As a result, transactions could be completed more quickly and at lower costs, especially for online and cross-border payments.

Increased financial inclusion: CBDCs provide alternative means of accessing financial services for those who are unbanked or underbanked, thereby addressing the issue of financial exclusion in society. Individuals who do not have a traditional bank account can simply create digital wallets to store and transfer digital money without using the banking system. This helps to increase individuals’ participation in the modern economy and improve their quality of life.

Safer payments backed by the government: CBDCs are issued and regulated by the central bank. They also have the backing of the government. The involvement of the central bank and government minimizes the financial risks for users.

More stable and secure than cryptocurrencies: CBDCs act as a more stable and secure form of currency than cryptocurrencies, which are subject to volatility and security risks.

Easier tracking and verification: Digital transactions can be easily tracked and verified. Therefore, central bank digital currencies may provide greater transparency and accountability.

Cons of Central Bank Digital Currencies

Privacy concerns: Since central bank digital currencies are issued and operated by the government, the government may have access to the financial data of all people who use CBDC. The government may use this data to track and monitor the financial transactions of individuals.

Government control: These digital currencies can give the government complete control over a person’s financial wellbeing. The government will have the ability to freeze or seize funds at its discretion, which could lead to issues related to financial freedom and autonomy.

Security risks: Like with any digital system, CBDCs too have security threats like cyber-attacks and hacking. These can result in significant financial losses for both individuals and the government.

Accessibility concerns: Digital currencies might not be accessible to everyone, especially those without access to smartphones and other devices. To run a CBDC network the countries’ electricity supply should always be available. This is not something a government can guarantee specially given the recent energy crisis.

Cryptocurrency risks: Although CBDCs may be more stable and secure than cryptocurrencies, people may still use it given cryptos decentralized nature as a way to circumvent government imposed CBDC limitations.

Implementation challenges: Implementing a digital currency at the national level may be a complex and challenging task. It may require significant resources and expertise. This implementation can also disrupt existing financial infrastructure that a country has built for hundred of years.

Conclusion

Central bank digital currencies are simply a digital form of fiat currency issued and regulated by the central bank. Some countries around the world, including the Bahamas, Nigeria, China, and Jamaica, have already introduced some form of CBDC into their financial systems. Some consider them as an efficient way to conduct digital transactions and an alternative to fiat paper currency system. But, like any new technology, they, too, have both pros and cons. Some pros include increased efficiency and financial inclusion, while cons include privacy concerns, security issues, and complete government control over transactions. Policymakers of a country should carefully examine its ability to maintain such complex system before getting into this disruptive technology.

In fact, one of his most popular videos, ‘Investigating Logan Paul’s Biggest Scam‘ has garnered over 8 million views in just two months. Through his witty commentary and in-depth analysis, Coffeezilla has gained a reputation for exposing online scams, frauds, and deceptive practices across various industries. He has created a movement in social media to hold people with big following/influencers accountable for their shady actions. He has also inspired other YouTube creators like King of Nothing, Scott Shafer to get in to this online scam exposing detective segment. In this article, we will take a closer look at Coffeezilla’s journey, his investigative process, and some of the biggest scams and frauds he exposed.

Coffeezilla’s Origin Story

Coffeezilla’s origin story is one of fascination with grifters and a desire to expose fraudulent activities. His interest in scams and fraud began during his high school years when his mother was diagnosed with cancer. Watching her get bombarded with phony health scams and dubious remedies made him question why these treatments were being used when they had little health value. He discovered that these were all grifters who took advantage of free speech to advertise their products as life-saving when they were not. This was the experience that first made him realize that there was a need to uncover these scams and frauds.

Findeisen started his YouTube channel in 2018. Initially, Coffeezilla produced content on various topics without a specific niche, but he eventually began to start creating content on uncovering scams. His early videos covered the reality of multi-level marketing, which he became familiar with during his college years as a chemical engineering student attending MLM pitch meetings. In addition to these scam exposé videos, Coffeezilla also produced various content videos in the early days of his YouTube channel. These videos covered a wide range of topics, including how to invest in stocks, the world’s loneliest whale, and his experience of being homeless for two hours.

However, it wasn’t until he began exposing fraudulent/fake “gurus” that his channel gained significant views and subscribers. He called out several individuals, including Tai Lopez, Ricky Gutierrez, Ben Philips, Brian Rose, Dan Peña, John Crestani, Caleb Maddix, Evan Luthra, Adrian Gee, Grant Cardone, Jay Mazini, and Dan Lok for their misleading and often unethical practices.

His work on uncovering social media influencer scams that’s very prevalent in Crypto and NFT space has made public aware that their favorite online personality is may be a scammer who would do anything for money.

Exposing the Fake Guru Industry

Coffeezilla gained a lot of attention for exposing fake gurus and get-rich-quick schemes. One example of this is his coverage of Dan Lok, a sales trainer who promoted the idea that anyone could escape the nine-to-five grind if they learned high ticket sales. Lok’s books and courses were marketed through social media, promising the dream of financial freedom, but once people signed up, they found themselves being upsold to more and more expensive courses. Coffeezilla spoke to many people who had taken the course, including teachers and others with limited financial resources, who had spent tens of thousands of dollars with nothing to show for it. He also heard from people who had been silenced by legal threats after they spoke out against Dan Lok’s courses.

According to Coffeezilla, the problem with get-rich-quick schemes like Dan Lok’s is that they prey on people’s desperation for financial security. Unlike advertising for a regular product, where there is a limit on how much people are willing to pay for it (elastic demand), these schemes have inelastic demand. Most of the victims of these scams are people who are in financial troubles. This means that out of desperation poor working class people will pay any amount of money for charlatans who promises that they have a system that can make people wealthy.

Coffeezilla notes that while college education may also be expensive, there is at least data available to show that it can improve one’s income. In contrast, there is little evidence to back up the extravagant claims made by get-rich-quick schemes. Instead, they are simply selling a dream that rarely materializes. This is why Coffeezilla has been vocal in his opposition to these types of schemes and has used his platform to raise awareness of their dangers.

Some of the Biggest Crypto/NFT Scams Uncovered by Coffeezilla

Save the Kids

Although his exposés on MLM schemes and fake gurus were more popular than his other YouTube content, it was with the Save the Kids token scandal that Coffeezilla gained international recognition. The Save the Kids token was a cryptocurrency token and pump and dump scheme (an investment fraud that involves artificially inflating the price of a stock or other asset through false or misleading statements in order to sell it at a higher price to unsuspecting investors), marketed as a charity token that was meant to donate a percentage of the transaction fee to a Binance-operated charity. Lucas, the individual behind the project, revealed that it was first formed by two individuals named “Manny” and “H.” However, for legal reasons, the founders’ full names were not disclosed. Save the Kids was widely promoted by various influencers, including commentator RiceGum, Xcademy founder Joel Morris, and model Sommer Ray, as well as FaZe Clan members Kay, Jarvis, Nikan, and Teeqo. They appeared in videos promoting the token and made numerous tweets encouraging their fanbase to purchase the token.

With his investigation, Coffeezilla discovered that most influencers who promoted the currency were connected to it through their managers. The primary architects of the pump and dump were Frazier Kay, who used several cryptocurrency wallets to potentially hide his tracks, Jordan Galen, a manager and promotion finder for Kay and various other members of the FaZe Clan, and YouTube personality Sam Pepper. Coffeezilla also uncovered that Lucas had changed the anti-whale mechanism on orders from Pepper and that Kay was one of the main architects of the Save the Kids token. It was suggested in Coffeezilla’s videos that Kay and Pepper broke ties during the launch of Save the Kids, which could be a possible motive for Pepper to order that Lucas change the anti-whale mechanism, a claim Kay continues to make. Kay additionally stated to Coffeezilla that he knew nothing about cryptocurrency, which Coffeezilla debunked by stating that Frazier had multiple cryptocurrency wallets, with one having hundreds of different cryptocurrencies.

Safemoon

In April 2022, Coffeezilla made allegations against the SafeMoon team, accusing them of misappropriating billions of dollars. According to Coffeezilla, the CEO of SafeMoon, John Karony, was found to be removing funds from the liquidity pool, which was the primary reason behind the cryptocurrency’s price pattern. Evidence was found by Coffeezilla, which showed that the liquidity wallet of SafeMoon had transferred funds to a wallet named the “Gabe (6abe) wallet,” which then withdrew funds to a separate company run by Karony. Former SafeMoon CTO Thomas “Papa” Smith responded to Coffeezilla’s claims, stating that the funds were taken from the “locked liquidity pool” before Karony’s appointment. He sent Coffeezilla evidence in the form of a blockchain transaction, showing an outflow of 36.7 trillion tokens from the liquidity pool, dated March 5, 2021. However, after the fraud allegations uncovered by Coffeezilla, Smith, who also had a role as a blockchain advisor for StrikeX, was dismissed by the company.

FTX

Coffeezilla was the first to raise alarm bells about FTX is may be running a ponzi type scheme when that company and its founder was paraded by the media as modern-day JP Morgan.

After the FTX collapse, Coffeezilla achieved a major breakthrough in his investigation into the CEO of FTX, Sam Bankman-Fried, by grilling him over various accusations of fraud and mismanagement of customer funds in a series of conversations. In a video titled, ‘I Accidentally Interviewed SBF And He Hated It‘ Coffeezilla released a series of conversations with Bankman-Fried over Twitter Spaces, recordings that seemingly debunked the cover-up attempts made by former FTX chief.

The first conversation focused on Bankman-Fried’s claim that he had no knowledge that FTX’s customer funds were being wired to Alameda Research, his personal crypto trading arm. Coffeezilla was skeptical of this claim and questioned the former CEO about it. Bankman-Fried’s response was that he had “a lot going on” at the time before he abruptly left Twitter Space. In the second conversation, Coffeezilla questioned Bankman-Fried’s competence as a leader of FTX, pointing out that Bankman-Fried often attributed mistakes to his own incompetence. In the third and final conversation, Coffeezilla claims to have gotten the “smoking gun” when Bankman-Fried admitted that FTX’s customer deposits were being treated differently than what was outlined in the company’s Terms of Service. This revelation is particularly concerning as it suggests that FTX may have been mishandling customer funds, which is a serious breach of trust.

Coffeezilla’s reporting on Bankman-Fried and FTX quickly went viral, leading to the CEO’s eventual arrest and indictment on various charges related to fraud, money laundering, and illicit use of customer funds.

Cryptozoo

Coffeezilla’s most prominent investigative work to date is on Cryptozoo, an interactive game that was launched in September 2021. Logan Paul, one of the project’s founders, was instrumental in its public push. Before its launch, Paul praised the game as unique and revolutionary in the crypto space, as players had the opportunity to earn money while playing.

The game uses its own cryptocurrency called ZooCoin, which buyers can purchase to acquire “eggs.” These eggs can be hatched to obtain a randomized animal from a list of different rarities. Players can then breed these animals to create new, crossbred creatures, which are then turned into NFTs. Players can hold onto these NFTs or burn them to earn more ZooCoin, creating a cycle that theoretically allows players to make significant returns on their investments.

According to reports, players of CryptoZoo have spent and lost tens of thousands of dollars on the platform but have been unable to cash out or even hatch the eggs they purchased. This led to public outcry. Coffeezilla posted a three-part series on YouTube exposing this NFT project, which garnered millions of views. Logan Paul, one of the project’s founders, initially responded to the allegations in a video that he later deleted, in which he claimed that players could hatch and breed their animals. However, he did not address the accusations of keeping players’ money. Paul later claimed to have been deceived by a criminal named Zach Kelling, who developed the game’s code and fled to Switzerland with it, demanding $1 million. Paul admitted to having hired Kelling, despite his criminal record.

Coffeezilla’s ability to use wit, sarcasm, and investigative skills has earned him the title of a citizen journalist in the crypto community, with many hailing his work as a crucial factor in bringing down corrupt figures. Although he has faced criticism from various influencers despite his success, he remains undeterred in his mission to hold bad actors accountable in the crypto and marketing world. He continues to use his platform to uncover the truth and shed light on fraudulent activities.

Coffeezilla’s Investigative Process

Coffeezilla’s investigative process involves a combination of data-driven analysis and interviews. In fact, his investigative process goes beyond just simple online searches and article reading. He believes that the key to a successful investigation is to look beyond what is readily available and talk to people who may provide non-obvious perspectives. In his experience, having conversations with victims and the subjects themselves has been enlightening and has provided valuable insights.

His investigative process is not limited to data analysis and interviews. He also utilizes blockchain evidence to uncover fraudulent activity, as in the case of Safe Moon. However, he acknowledges that this expertise may not always give him an edge as more people become familiar with this type of analysis.

Coffeezilla also emphasizes the importance of being responsible and giving the subject a chance to respond. As his platform has grown, he has become more conscientious of the impact his videos may have. He wants to make sure that he gets the story right and presents all sides of the story. Coffeezilla also claims that he takes a respectful and investigative approach in his interviews. He believes in attacking in good faith and presenting evidence to allow the audience to make up their own mind. By doing so, he sends an important signal to his guests that he is not just about tearing them down but seeking the truth. This approach has led many people to still talk to him, despite his increasing fame. In fact, Coffeezilla believes in being upfront about his approach and not misleading his guests. This has allowed him to maintain a level of respect and integrity in his interviews.

Conclusion

In conclusion, Coffeezilla has become a rising star in investigative journalism on YouTube, gaining a large following due to his coverage of various scams and fraudulent practices, especially in the crypto/NFT space. He initially started producing videos on a range of topics before shifting his focus to uncovering scams, particularly those involving fake gurus, get-rich-quick schemes, MLM schemes, and crypto NFT scams. Through his witty commentary and in-depth analysis, Coffeezilla has become a respected voice in fighting for consumer rights, using his platform to raise awareness of their dangers and to help protect vulnerable people from falling victim to scams.

If you enjoyed this article then you may also like to read our post Are Cryptocurrencies and NFTs digital pyramid schemes based off of Greater fool theory?

By using deep learning algorithms, AI art generators can examine existing pieces of artwork and generate new pieces with comparable characteristics. An AI art generator is trained with billions of images, with the system being programmed to identify patterns and characteristics present in the images. Through analyzing the pixels in an image, the AI system can compare the pixels in a new image to those in its database of training images to determine similarities and create a new piece of artwork that resembles the original.

Dall-E 2 and Midjourney are two of the most popular AI art generators in recent times. They use text-based prompts to generate images. Both Midjourney and DALL-E 2 offer the opportunity for users to try out their services for free.

Why Dall-E 2 and Midjourney are Considered the best AI Image Generators?

DALL-E 2 and Midjourney represent cutting-edge advancements in the field of artificial intelligence. Both are capable of generating a wide variety of images, including digital art, paintings, photorealistic images, cartoons, logos, and more. This makes them popular among artists and graphic designers who are looking for new and innovative ways to create images.

More importantly, these image generators are designed to be user-friendly and easy to use, even for those who are not familiar with AI. This makes them accessible to a wider range of users, including individuals and businesses who may not have a lot of technical expertise.

Additionally, both DALL-E 2 and Midjourney have free versions available, which makes them universally accessible to everyone with an internet access. This has helped to increase their popularity, as more people are able to try out these tools and see the benefits for themselves. Later, they can upgrade to a paid version of Midjourney or acquire credits for DALL-E 2 and get access to unlimited image generation capability.

About Dall-E 2

DALL-E 2 is a deep learning model created by OpenAI that can generate digital images from descriptions written in natural language. It basically uses two methods to make the connection between text and image: CLIP (Contrastive Language-Image Pre-training) and diffusion models. CLIP helps to link the text description to parts of the image. Diffusion models are based on a type of AI called transformers, which generate images. They also use a modified version of GPT-3 to make the images.

DALL-E 2 was first introduced to a limited group of pre-selected users for a research preview in July 2022. In September 2022, access to DALL-E 2 was opened to everyone.

How to Use Dall-E 2

1. Go to https://openai.com/dall-e-2/ and click the ‘Sign Up’ button at the top right corner. (If you already have an account in open AI, you don’t have to sign up for Dall-E 2, You can just log in with your credentials).

2. When you sign up, OpenAI will require your email ID and a new password to set up an account.

3. You’ll be asked to verify your phone number.

4. Enter the code you received and verify your account.

Once you have set up your account, this is the initial screen you see: ‘Welcome to DALL-E 2’:

Click Continue, and you will see the number of free credits you get to use.

Once you click on ‘Start creating with Dall-E, you will be directed to the interface of Dall-E 2 image generator.

This simple interface allows you to create, edit or modify images with just a text command, which is called a prompt. Let’s try a simple prompt!

As you can see, Dall-E takes a little bit of time to generate the images. Meanwhile, it gives you tips on how to improve your prompts to improve your AI Image generation abilities.

You can also scroll down to see hundreds of thousands of images created using this AI and the prompts that were used to generate them. Observe them carefully and see what type of keywords have been used in the prompts.

Dall-E 2 generates 4 images for a prompt. If you are happy with these results, you can click on the image and press the download icon to download it to your phone or computer. If you are not content with any of the images, you can continue to generate more.

You can also use Dall-E 2 to upload an image and edit it to match your requirements. To do this,

1. Click on the ‘Upload an image’ option and choose the image you want to edit.

2. Dall-E gives you the option to upload the image as it is or crop the image to your need.

3. Then you have to pick an action: Edit image or Generate Variations

4. To edit the image, pick Edit image.

5. Next, your image will appear inside the generation frame.

Now you can edit your image using the tools as shown in the above screenshot.

Dall-E 2 Pricing

At Dall-E 2, the pricing depends on the number of credits you use. Every time you request an image from the DALL-E system (by generating images through a text prompt, a variation request, or an edit request), it will cost you one credit. When you sign up for DALL-E, you receive 50 free credits to use in your first month. Every month thereafter, you will receive 15 free credits. Keep in mind that any unused free credits will not carry over to the next month and will expire one month after they are granted.

If you want more credits to generate images, you can purchase DALL-E credits by clicking on the “Buy Credits” option either on your account page or in the dropdown menu under your profile picture.

As you can see from the above image, 115 credits cost $15. This is the minimum number of credits you can buy at one time. 230 credits cost $30, 345 credits cost $45 credits, and so on. This means each credit costs $0.13, and you can buy credits in increments of 115, with the price increasing by $15 each time.

About Midjourney

Midjourney is a generative AI created by an independent research lab with the same name, founded by David Holz. It generates images from textual descriptions, just like DALL-E 2. Midjourney is currently in an open beta testing phase, which began on July 12, 2022. Access to the service is only possible through the official Discord by direct messaging the Discord bot or by inviting the bot to a server on a third-party platform.

How to Use Midjourney

1. Since Midjourney works entirely on a Discord server, you have to first create an account on Discord. This is completely free to sign up.

2. Next, visit the Midjourney website and click “Join the beta.”

3. Accept the Discord invitation to Midjourney and choose Continue to Discord.

4. Next, open the Discord app, find the ship-like Midjourney icon, and access the Midjourney channel by clicking on it.

5. Find the rooms for new users in Midjourney’s channel. Generally, there are multiple rooms available with names like “newbies-108.”

Now that you have set up your account, it’s time to start creating AI art. There is a limited number of prompts available as part of your free trial, and you can create about 25 free images. If you wish to continue creating beyond that, you’ll need to purchase a full membership. To make the most out of your free trial, take a moment to carefully consider what you want to create on Midjourney. If you need assistance, type “/help” for a list of tips.

When you’re ready, type “/imagine” in the Discord chat in the newbies’ room. This will open a prompt field where you can describe the image you want to generate. The more detail you provide in your description, the better the AI will be able to generate the results you desire. So, be descriptive, and if you have a specific style in mind, make sure to include it in your description.

You can also scroll through the thousands of images created by other users to get an idea about the prompts and types of terms you can use to create the image in your mind.

When you have finished typing the prompt, press ENTER.

Let’s now try the same prompt we used in Dall-E 2 and see what kind of images Midjourney generates for this prompt.

Once you ENTER your prompt, you have to wait a few moments for Midjourney to generate the images based on your description. As you can see from the above recording, there are hundreds of users using the same chatroom to create AI images, and the screen keeps getting flooded with images. But after a while, you will get used to this fast-moving pace, finding it easier to focus only on your prompt and images.

Generally, Midjourney gives you 4 AI-generated images.

Under these four images, you will see a section of buttons labeled U and V with numbers 1 to 4. The numbers correspond to the four images generated by Midjourney. By selecting U, you can increase the size and definition of the chosen image. By selecting V, you can generate a completely new image based on the current one you have selected. There is also a refresh button available if you want to request a new set of images. But remember, each of these changes will use up your available free prompts.

You can download the images generated by simply clicking on them. But if you need higher-resolution images, go back to Midjourney website and sign in using your Discord credentials. Then you can access your Midjourney profile, which shows all the images you have generated or edited.

Now scroll through the images, click on the image you want, and press ‘Save’.

Midjourney Pricing

Midjourney has three subscription plans, with monthly and yearly billing options.

The Basic Plan allows:

• Limited generations (~200 / month)
• General commercial terms
• Access to member gallery
• Optional credit top ups
• 3 concurrent fast jobs

The Standard Plan allows:

• 15h Fast generations
• Unlimited Relaxed generations
• General commercial terms
• Access to member gallery
• Optional credit top ups
• 3 concurrent fast jobs

The Pro Plan allows:

• 30h Fast generations
• Unlimited Relaxed generations
• General commercial terms
• Access to member gallery
• Optional credit top ups
• Stealth image generation
• 12 concurrent fast jobs

Will AI Image Generators Replace Human Artists and Designers?

Art produced by AI can be completed in just a few seconds, whereas artists and designers might take several days to create a similar piece. In addition, using artificial intelligence image generation tools like Dall-E 2 and Midjourney is often more affordable than hiring a professional illustrator or graphic designer. This is why such tools have rapidly become popular with many people.

But it’s important to note that AI image generators still lack the emotional connection, creativity, and unique perspective that humans bring to their work. Furthermore, many people still prefer the personal touch and creativity that comes from human artists and designers.

Additionally, there are also some concerns about how the images used to train AI art programs are obtained. Some of these images may be copyrighted works by professional artists, photos of living people, or even confidential medical records. This raises questions about the ethics and legality of using such images for AI training. AI art programs use a large database of copyrighted and non-copyrighted images to learn from. Some researchers have also found that AI can simply memorize images from this data instead of creating something new. This can result in AI-generated images that are too similar to existing works, which could be considered copyright infringement.

Conclusion

Overall, AI image creation using Midjourney and Dall-E 2 is a fascinating and accessible technology for anyone. By following the simple steps outlined in this beginner’s guide, you can start creating unique and imaginative images with just a few prompts. Whether you’re a hobbyist, artist, or just looking to experiment with the latest technology, AI image creation is an exciting field to explore. So why not give it a try and see what kind of images you can create with Midjourney and Dall-E 2 today!

If you enjoyed this article then you may also like to read our comprehensive guide to ChatGPT.

In this article, we’ll be showcasing 10 worthwhile side hustles you can try this year with little investment and involvement. Whether you’re looking for a flexible part-time job, a way to make extra money, or a way to turn your passion into a profitable business, we’ve got you covered.

1. Upwork

Upwork is a great platform for finding many types of side hustles. It offers jobs related to a wide range of categories, including IT and development, sales, marketing, design, writing, translation, and accounting. Whether you have experience in a specific field or are looking to learn something new, Upwork has something for everyone. It’s a great place to start for finding the first customers and can be a reliable source of income even during tough times. You can take advantage of this freelance platform’s free signup and easily create your own Upwork account. Then you have to search for jobs that suit your skills and qualifications and apply for them using Upwork connects.

Make sure to offer low prices on your first orders to earn excellent ratings. Once you have 10-15 5-star reviews, you’ll be well on your way to finding steady work. The platform offers easy money transfer options, such as PayPal and Payoneer. If you’re looking for a side hustle you can do from anywhere, Upwork is definitely worth exploring.

2. Creating a YouTube Channel

Despite the popular myth, making money on YouTube isn’t easy. But only if you don’t know what to do. The best thing about doing YouTube as a side hustle is that it doesn’t force you to do anything. You don’t have clients – you do it for yourself. So you can try and try and try as many times as you want to without being forced to report to someone. Plus, YouTube gives an enormous amount of creative freedom.

YouTube offers endless possibilities for anyone to create and share content. You do not have to be an expert in a particular field, as anyone can create a YouTube blog about their regular job, whether it be a truck driver, delivery person, cleaner, etc. The platform allows anyone to earn money through their content. In fact, during economic downturns, YouTube becomes an even more valuable resource as people turn to it for entertainment, relaxation, and solutions to their problems. However, becoming successful on YouTube requires more than just starting to make videos. You have to know about your audience – things like what interests your audience, what keeps them engaged, how often they watch your videos, etc. Over time, your YouTube channel can bring you passive income – Through Google Adsense program, paid sponsorships, and fan support through platforms such as Patreon and Locals.

3. Designing websites

In the past, designing a website required technical skills and knowledge, including knowledge of CSS and PHP. But site design has become much more manageable in recent years, as there are now several platforms that allow for easy design without the need for extensive coding knowledge. Platforms such as Wix, Webflow, and Squarespace allow you to simply drag and drop design elements without the need for advanced technical skills. Additionally, you can learn the basics of WordPress in a few short days by using online resources such as tutorials and courses. The cost of acquiring the necessary skills and software is also relatively low, making website design a cost-effective side hustle option.

Designing websites can be a great side hustle during a recession because more people will be starting new businesses, and those businesses will need a professional-looking website. As the old saying goes “hard times create strong men”. During tough times, strong individuals will rise to the occasion and create new opportunities. Our advice is to choose a specific niche with less competition, for example, creating websites for lawyers. Once you’ve chosen your niche, you can focus on getting that first order and using it as a portfolio piece to attract other clients. With a bit of research and effort, you can be well on your way to making money as a website designer.

4. Copywriting

Copywriting is a perfect side hustle option that is relatively easy to start. If you have basic typing skills and the ability to write coherent sentences, you can join the ranks of freelance writers. Companies are always in need of someone to write blog posts, create content optimized for search engines, and more, and they often pay well for these services. Additionally, there are many tools available such as Grammarly and Word AI, that can help check grammar, fix mistakes, or even rewrite entire texts.

Having a journalism degree is not a requirement for modern copywriters; you can simply place an ad online and start writing. You can even join freelancer platforms like Fiverr and Upwork to find new clients. They will help you earn an extra income in your spare time. Once you find a good client basis, you can start working on your own. The work is usually ongoing and freelance-based, allowing you to write for a few hours a day, earn a couple hundred dollars, and keep this going for years. Once you impress a client, they tend to stick with you, and a steady flow of orders can be expected.

5. Writing YouTube Scripts

Writing YouTube scripts is a side hustle that is similar to copywriting but with its own unique elements. Many of us spend hours watching YouTube content every day, and it’s likely that everyone has a niche they are particularly knowledgeable about. That knowledge of a specific topic is what YouTubers are looking for in a scriptwriter. While anyone can write a mediocre script, someone who is knowledgeable in a certain area can create an interesting and useful script that keeps viewers engaged. YouTube scripts also require research and a focus on storytelling to keep the viewer interested. If you have good communication skills and the ability to write engaging stories, then writing YouTube scripts may be a great fit for you. You can reach out to YouTubers by writing emails, and someone will likely respond. It could be your dream job!

6. Paid Email Newsletters

Paid email newsletters are a great side hustle option with two possibilities. The first option is to create your own paid email newsletter, and the second is to create one for someone else. Both options can bring in a steady income. Let’s focus on creating your own email newsletter. Some people believe that email is an outdated format, but in reality, it is still very much alive, especially among middle-aged people and corporate workers. Email newsletters offer more structure and organization than social media, as everyone who signs up receives a structured and curated flow of information that contributes to a bigger picture. Additionally, it happens in the least intrusive way possible, as most people receive a large number of emails on a daily basis. If you have knowledge or information you want to share with the world, creating a paid email newsletter could be your ticket to financial freedom. Substack is an easy solution that helps anyone to build paid email newsletters.

7. Ecommerce

E-commerce simply involves buying and selling goods or services online. It’s the simple process of conducting business transactions through the internet. E-commerce is a vast niche, and it’s important to find what works for you. Dropshipping business is also a popular method within the e-commerce industry. It’s a business model in which e-commerce retailers do not keep the products they sell in stock. Instead, when a customer places an order, the retailer will purchase the product from a third-party supplier or manufacturer and have it shipped directly to the customer.

You can also sell your products directly through the internet. One option you can consider in e-commerce is selling t-shirts online through platforms like Amazon Merch. With this service, you upload your product design, configure the listing, and Amazon takes care of the rest, including displaying your item to millions of people and printing and delivering orders. You don’t have to have a physical store or stock inventory; Amazon handles it all for you. And for designs, you can easily download them, customize existing ones, or create your own using tools like Canva. Sometimes the most unexpected and unconventional products can become popular among customers.

8. Social Media Consultants

Becoming a social media consultant is a side hustle that can be done at any age. As long as you use social media and have some knowledge of digital marketing, you have the skills to help local businesses that don’t have a social media presence or are managing it poorly. If you are not very good at digital marketing, you can brush up your skills by watching some tutorials on subjects like social media content creation, Google ads, and Facebook ads.

As a social media consultant, you can offer your assistance in creating content and strategies that will appeal to the audience of your age and interests. You can start by giving free advice, then gradually establish your expertise, and eventually even become the sole manager of their social media presence. This can involve just making a few posts per day, responding to messages on Instagram or Facebook, and it can lead to a sustainable income, especially if you acquire multiple clients at once.

9. Churning Credit Cards

Churning credit cards is an easy side hustle that involves taking advantage of signup bonuses offered by banks. These bonuses can range from $50 to $200 and typically require you to spend a certain amount of money within a specified time frame. The idea is that you move your spending to a different card for a month or two to qualify for the bonus while also boosting your credit score. For example, the Bank of America card offers a $200 bonus if you spend at least $1000 in three months, the Chase Freedom Flex card offers a $200 bonus for spending $500 in the first three months, and the Ink Business Unlimited card offers a $900 bonus for spending over $6k in three months. There are many options available, and some cards can be a good deal even without bonuses. Credit card churning is a low-effort way to make money that anyone can do.

10. Flipping Free Items Online

Flipping free items online is a side hustle that involves finding free items online, typically on sites such as Facebook marketplace, and reselling them for a profit. This hustle requires some effort in terms of picking up and moving items, but it can be very profitable as it requires zero investment. To start, browse the free stuff section of local online marketplaces and reach out to people offering items for free. Once you’ve established contact with someone, you can schedule a pick-up, move the item to your place, and then list it for sale. Alternatively, you can list the item for sale before you’ve actually picked it up and schedule the meeting with the original owner to coincide with the sale. This way, your work is limited to arriving at the location, accepting the item, waiting for the buyer, and going home with money. This hustle can yield high returns on good items with very low effort and zero investment required.

These hustle ideas are an accessible and low-barrier way to increase your income. They do not require any financial investment, making them the perfect option for those looking to start a side hustle with little to no financial resources. They offer great potential for earning extra money and can be done without any hard labor. With the right approach, time, and effort, you can turn your initial investment of zero dollars into hundreds, even thousands of dollars. The best part is anyone can start these side hustles, regardless of their current financial situation or background. Since they have flexible hours, you can easily do them with your full-time job. These are perfect for those looking for a way to supplement their income without having to make a significant investment or change their current lifestyle.

What’s your favorite side hustle out of these? Let us know in the comment below.

If you enjoyed this article then you may also like to read our Introduction to Online Freelancing.

Bitcoin is not controlled by any government or institution, and it is transferred and verified using advanced computer systems and algorithms. It is divisible, transferable, and can be stored easily. However, it’s relatively new, and its value is highly volatile. Some argues Bitcoins can be considered to be a safe-haven asset similar to Gold, serving as a hedge against inflation and currency devaluation. But in reality how does bitcoin compare to the tried-and-true gold? In this article, we will explore the differences between these two investment assets and examine how they well they perform as future investment opportunities.

What is Bitcoin?

Bitcoin is a type of cryptocurrency, which is a digital or virtual currency that uses cryptography for security. Cryptocurrency, in general, is a decentralized form of currency that is not controlled by any government or institution. It is transferred using advanced computer systems. Bitcoin is the first and most well-known cryptocurrency, but there are many other digital currencies available, such as Ethereum, Litecoin, and Ripple – these are collectively known as alt-coins.

Bitcoin was created in 2009 by an unknown individual or individuals using the name Satoshi Nakamoto. The identity of Satoshi Nakamoto is still unknown. The value of Bitcoin has risen greatly since its creation. When it was first launched, it had no immediate monetary value since it was a completely new and untested concept. The price of a bitcoin on 12th January 2023 (as of writing this article) is $18,165.97 USD. The price of bitcoin has experienced significant fluctuations over the past 14 years.

What is Gold?

Gold is a precious metal that has been used as a form of currency and a store of value for thousands of years. It is widely considered to be a safe-haven asset, i.e., it tends to retain its value during times of economic uncertainty or financial crisis. Gold is a rare earth metal that has very limited supply. There is only about 20% Gold still left to be mined so this rarity is one of the reasons that helps Gold value to rise with time.

As an investment asset, gold is often used as a hedge against inflation, as its value tends to increase when the value of paper fiat currencies decreases. It’s usually an asset that every investor hold in their portfolio. Gold is a safe-haven asset during geopolitical and economic crises, as it is not controlled by any government or institution and is not affected by changes in interest rates or other economic indicators. Gold can be invested in a variety of forms, such as gold coins, bars (bullion), or jewellery. Investing in physical gold is a way to protect against inflation and currency devaluation. But it can be expensive to store and insure, and it’s not easy to liquidate. These pitfalls are easily solved if the world revert back to using the Gold standard, instead of fiat currency monetary system we use today. Some countries are currently exploring on ways to build a new gold backed global reserve currency.

Gold is money. Everything else is credit.

J.P. Morgan

Gold vs. Bitcoin – Comparison

1. Volatility

Bitcoin is highly volatile, meaning its prices can fluctuate dramatically in a short period of time. In 2009, the price of a bitcoin was 0, but in November 2021, it went up to $65,000, the highest recorded price of a bitcoin. Today (12th January 2023), the price of a bitcoin is just $18,213.47. These figures show the volatility of bitcoins and the cryptocurrency market. Volatility can also be seen as an opportunity, as it can present buying opportunities if the price drops, but it also entails high risk. Lack of regulation, uncertainty about the future, and speculation are the main factors that contribute to this volatility. News and media coverage can have a big impact on the price of Bitcoin. Positive news, such as the adoption of Bitcoin by a major company, can drive up its price, while negative news, such as a bankruptcy of a big cryptocurrency exchange (like FTX), can drive it down.

Gold, although it has a limited supply, is less volatile than bitcoin. In 2009, the highest price for an ounce of gold was $1226.60, and in January 2023, the price of an ounce of gold is around $1880. The price of gold usually fluctuates gently over time. Gold is more stable than bitcoin as it has been a matured investment option for a long time.

2. Price Growth

Over the last five years, the price of Bitcoin has increased by 16500%, while the price of gold has only increased by about 40%. When considering this growth in value, bitcoin seems to be a good choice for investments. It has the ability to make you rich overnight (remember, it’s also a high-risk investment).

Meanwhile, gold won’t make you super-rich, but unlike Bitcoin it doesn’t have a downside potential that could wipe out all your paper earnings in an instant.

3. Drop of Value

Gold is a rare metal that has been used as a store of value and a medium of exchange since the times of Romans. It has a tangible physical presence, and its value is based in part on its rarity and industrial uses. Therefore, the value of gold will never drop to zero.

Bitcoin is still in exploration mode, while gold is already an established form of investment Bitcoin is in a bubble as we discussed in our previous article. This means that Bitcoin has a higher chance of a sudden downside, resulting in wiping out your investment. Moreover, if you use popular exchanges to hold bitcoin then there’s chance that they might go bankrupt like in the case of FTX.

4. Liquidity

Both bitcoin and gold are liquid assets (convertibility to cash). But bitcoin is extremely liquid, while physical gold is only moderately liquid. Physical Gold is liquid as in the sense that you can take it anywhere and sell it anytime. You can even sell it over Facebook Marketplace or eBay or in the black market. All the same, it has a lower liquidity than bitcoin. Bitcoin can be sold just with a click of a button for a very small transaction fee. With gold, you have to find a buyer interested in gold or a shop that deals in gold, but you might still not get the spot price for it.

People mainly use Gold as a storer of value so the ability to convert Gold back to cash isn’t a major concern for many gold stackers. There are other ways to get Gold exposure as an investment than having its physical form (coins or bullion). These include buying shares of gold mining companies or gold exchange-traded funds (ETFs), invest in gold by trading options and futures contracts. These forms of investments bypass the liquidly problem of physical Gold. Countries like China and Russia are exploring ways to create Gold backed digital currency which will be aimed to replace US dollar as the global reserve currency.

5. Divisibility

Bitcoin is divisible. The smallest unit of a Bitcoin is called a Satoshi, and it is one hundred millionth of a Bitcoin (0.00000001 BTC). This divisibility allows for flexibility in terms of making transactions and also allows for a wide range of transactions, from buying a cup of coffee to buying a house or a car or even investing or paying bills. On the other hand, Gold is not very divisible. Once you buy a gold coin or a gold bar, even if it’s a fractional portion of gold, you cannot divide it further.

6. Counterfeiting

Gold can be counterfeited, and there are many counterfeiters in the market who sell gold-plated lead bars instead of real gold. Experienced gold investors are generally proficient in identifying real gold from fake gold. But amateur gold investors may find themselves in hot waters with these counterfeits. Bitcoin, on the other hand, is based on a decentralized and digital system, so it is not possible to counterfeit in the traditional sense, where someone creates a copy of a physical object like a dollar bill or coin.

7. Daily Use for Payments

When it comes to transactions, Central bank issued Gold coins are legal tender and has a face value. However, due to safety reason you can’t really carry around gold coins with you to make transactions in daily life.

Bitcoin suppose to solve this problem but due to its highly volatile nature (price/value changes every second) and large fees people have to incur when processing the transactions has hindered its adaptation as a form payment. It’s almost impossible to price things in Bitcoin so we can not expect wide acceptance of it as a legal tender.

8. Security

Gold, as a physical commodity, can be stolen or lost if not stored properly. It is also subject to fraud and forgery. So, it is important to store it in a safe and secure location and insure it, especially if you have a massive amount of gold. On the other hand, Bitcoin, as a digital asset, is more susceptible to hacking and phishing attacks. Hackers may try to gain access to an individual’s digital wallet by guessing or stealing their private key or by tricking them into giving it away through phishing scams.

9. Longevity

Bitcoin has a comparatively short history, as it was introduced only in 2009, but gold has been used as a form of currency for thousands of years. Since bitcoin is a relatively new hyped up concept, there is a chance for the value of bitcoin to go back to zero. However, by looking at the long history of gold as a medium of exchange, it’s highly unlikely that the price of gold will ever go to zero. Even in times of economic downturn or hyperinflation, gold has always maintained a significant level of value.

10. Damage

Most people store bitcoins in a hard drive, specifically a hardware wallet. A hardware wallet is a physical device, similar to a USB drive, that stores your private keys offline. This means that the keys are not stored on a computer connected to the internet, which makes them much more secure against hacking and theft. The downside of hardware wallets is that they can be lost, stolen or damaged. They can be damaged by elements like water, high heat, and dust. Gold, on the other hand, is a very strong and durable metal and is resistant to many forms of damage.

11. Loss and Recovery

Once a bitcoin is lost, it’s not possible to recover it. If the private key associated with a bitcoin wallet is lost, the bitcoins in that wallet will be permanently lost and will be impossible to access or spend. For example, if someone who owns bitcoins dies and the key is not known by others, bitcoins are lost forever.

Gold does not get “lost” in the same way that bitcoins can be lost. Physical gold, such as gold coins or bars, can be lost or stolen, and it can be difficult or impossible to recover it once it is gone. However, gold can also be found again. For example, lost gold mines can be rediscovered, or gold can be recovered from shipwrecks or natural disasters. Also, gold is an element that exists naturally on the earth, so it will never be destroyed or disappear.

12. Technology

To access bitcoins, one has to have access to a computer and the internet. Moreover, investing in bitcoins involves several steps, such as choosing a bitcoin wallet (a place to store the bitcoins) and a cryptocurrency exchange (a platform where you can buy and sell bitcoin). These require a certain level of computer literacy. However, investing in gold does not require technology or electricity. Neither does it require computer skills.

Summary

Both gold and bitcoin have their own advantages and disadvantages. Gold is a trustworthy form of investment that has a long history of maintaining its value. Bitcoin is digital, easily transferable and has the potential for growth as well as significant downside due to the bubble it’s in right now.

Ultimately, the best investment choice depends on your investment goals, risk tolerance, and personal preference. It’s always a good idea to diversify your investment portfolio and consider all the factors before investing in any asset.

Bitcoin is no more digital gold than a photograph of a hamburger is digital food.

Peter Schiff

If you enjoyed this article then you may also like to read our post Are Cryptocurrencies and NFTs digital pyramid schemes based off of Greater fool theory?