Following are some of the most frequently asked questions (Crypto FAQs) about DirtiCoin.
Q. How is DirtiCoin different from Bitcoin and Ether?
A. DirtiCoin, Bitcoin (BTC), and Ether (ETH) are all cryptocurrencies. This means they use blockchain technology (crypto) and represent a value to their buyers (currency). BTC value is driven by both public perception and a mathematical model. The model uses scarcity to create a store of value resistant to inflation. However, it is not resistant to volatility.
ETH value is driven by its utility. It enables blockchain and cryptocurrency transactions and platforms (Shah, 2021). Real estate and liquid assets support the value of DirtiCoin. The publicly viewable Asset Ledger lets everyone see the value of DirtiCoin.
Crypto FAQs – The Asset Ledger
Q. What is the publicly available Asset Ledger of the Company (the Asset Ledger) and why is it important?
A. When DirtiCoin are minted they are deposited into the treasury of the Company. The Company (DirtiCoinManagement, LLC) exchanges DirtiCoin for the fiat and crypto wealth of depositors. That wealth is placed into the treasury of the Company. The Company then works with real estate investing companies across the USA to buy real estate assets using 65% of the wealth entrusted to it. The Company was formed specifically for the purposes of minting DirtiCoin while also acquiring real estate assets to support the value of DirtiCoin.
A subset of the Company’s Balance Sheet
The Asset Ledger is a summary of a subset of the treasury of the Company. It shows the current, total market value of real estate and liquid assets held by the Company. These assets support the value of DirtiCoin. They can be liquidated to allow depositors to withdraw their wealth relatively quickly and efficiently.
Q. Why doesn’t the Asset Ledger also show the liabilities associated with the real estate?
A. The most common liability offsetting the value of real estate is debt. The Company does not use debt to secure real estate assets. Using debt introduces many significant risks which can conspire to rob depositors of their wealth.
Crypto FAQs
Q. Why doesn’t the Company show its whole balance sheet?
A. Corporate balance sheets show assets and liabilities. They are designed to demonstrate the liabilities of a company are completely offset by the assets. The most important liability of the Company is to be able to exchange DirtiCoin for assets in their treasury. The Asset Ledger shows the assets which are offsetting the liability owed to the buyers of DirtiCoin. All other liabilities of the Company are offset by other assets which are irrelevant to the Asset Ledger and the duty owed to DirtiCoin buyers.
Crypto FAQs – Dividends
Q. How frequently and how much dividends can I expect to see from my purchase of DirtiCoin?
A. DirtiCoin doesn’t provide dividends. It is a currency, not a security. When you put a $100 bill of US currency in your wallet, no matter how long you keep it there, neither the Federal Reserve nor the US Government will ever send you a dividend payment for your purchase of US Dollars (USD). USD is a currency, not a security. For more the status of DirtiCoin as a currency click here.
Q. If I don’t get dividends from DirtiCoin, why should I buy it?
A. Storing your wealth in DirtiCoin gives you two primary benefits: 1) Hedging against inflation and 2) Hedging against volatility.
The rising value of real estate is called appreciation. Historically, real estate appreciation out paces inflation. Appreciation increases the value of DirtiCoin.
Historically, wild value swings only affect real estate in local areas. Nationwide, real estate values increase at a slow, but steady pace. This is the opposite of volatility. The Company buys real estate in different geographic areas to reduce the impacts of local variability.
Click here to read more on the value proposition of DirtiCoin
Crypto FAQs
Q. How does DirtiCoin give me a hedge against inflation, and why is that important?
Inflation Fighting
Inflation eats your investments
A. Inflation erodes the buying power of your money. For the past 20 years (2001 to 2021) inflation of the USD had been held to just about 2.2% per year. While that doesn’t seem like much it compounds over time, meaning that what you cany buy with $100 today would have only cost you $75 just 10 years ago, and $53 just 20 years ago.
If your investments don’t outpace inflation, then the buying power of your money in those investments is declining. Real estate has long been acknowledged as one of the best investments to hedge against inflation. Unfortunately for most people, getting that benefit from real estate has typically required people to have tens of thousands and hundreds of thousands of dollars available to invest directly in real estate.
Real estate beats inflation
The value of DirtiCoin is backed by investments in US real estate held by the Company and publicly seen in that company’s Asset Ledger. During the same 20-year period where the buying power of USD declined by 2.2% (on average) each year, the value of real estate increased by 3.9% (on average) each year. This means that the $100 invested in real estate 20 years ago would now be worth $202.
DirtiCoin makes available to all its buyers this important benefit of hedging against inflation without requiring them to directly invest in real estate and without the requirement for investing large amounts of cash.
Click here for more on how DirtiCoin protects your wealth against inflation.
Q. How does DirtiCoin give me a hedge against volatility, and why is that important?
Volatility Risk
A. Volatility is the rapid upward and downward change in the value of an investment. It is dangerous to the value of any investment. Holding volatile investment position means risking dramatic decreases in the value of the investment. For those willing to bear the risk, it can also mean the opportunity to quickly increase the value of their investment. Historically, most investors end up experiencing dramatic gains and even more dramatic losses due to volatility. The investors who make money when investment values drop quickly are few and far between.
Volatility Impacts
The cryptocurrency investing world is no exception to the temptations and perils of volatility. In November of 2021 the most prominent cryptocurrency in the world was trading at about $65k per coin. By February of 2022 that had fallen to about $42k per coin. For anyone who bought Bitcoin in November of 2021 they lost about 1/3rd of their investment. As of this writing, the value has still not regained its November 2021 levels.
Volatility Defense
As an investment, real estate is historically one of the least volatile investments available. Even gold has been more volatile. Further, while it is possible for people to find some massive gold deposits which would lower the value of gold as an investment, discovering “deposits” of real estate isn’t a possibility. It is a finite commodity. As the saying goes, “Haciendo No Más”, or in English “they aren’t making any more of it.”
Appreciation is steady
Some point to the dramatic decline of real estate values in the USA from 2008 to 2012. They see this as evidence of large-scale real estate volatility. Without question that period represents the dangers of negative volatility and on a national scale. Our analysis of the appreciation rates of real estate deliberately included that time frame so that a ‘worst case’ actual scenario would depress the historical average. We found that for the 20 years from 2001 to 2021 real estate values in the USA have risen an average of 3.9% each year. Even with the “crash” in 2008, the average appreciation outstrips the average inflation rate of 2.2% over these same two decades.
Crypto FAQs
Real estate without the headaches
The value of DirtiCoin is backed by investments in US real estate. Everyone sees the value of these investments in the Company’s Asset Ledger. Because of the natural and historical resistance to widespread negative volatility, investments in real estate are a hedge against volatility. Prior to DirtiCoin for individuals to enjoy this benefit against volatility required the investment of large sums of capital. DirtiCoin allows people to benefit from the naturally low volatility of real estate without all the risks and large investments required by direct real estate investing.
Click here for mor on how DirtiCoin protects your wealth against volatility.
Crypto FAQs – Real Estate
Q. How is DirtiCoin any different other Real Estate cryptocurrencies?
A. There are a lot of cryptocurrency and other funds offering people the benefits of investing in real estate without requiring that they invest large amounts of money. They are doing this through blockchain and cryptocurrency tokens.
Real Estate NFT Investing
Today, more than ever before, many investment schemes offer small investors the ability to benefit from real estate. They achieve this primarily by allowing investors to buy a fractional ownership of a specific real estate asset. Blockchain technology, also often referred to as cryptocurrency, is a wonderful enabler in this realm. All these opportunities are tied directly to real estate. Some are dependent entirely on one property. Others rely on a pool of properties.
NFT are securities
They all qualify as securities and carry with them all the inherent risks associated with owning real estate. The economic impact of those risks shows up in the returns from the investment and the value of each share.
All of them suffer from a systemic problem with liquidity. Markets to buy and sell these fractional shares are very limited. A share in one investment is not the same as a share in another investment. This latter point is called fungibility. Most real estate investments are not fungible. They are not all equally valuable.
100% Fungible DirtiCoin
The dependence of all DirtiCoin on the value of the same Asset Ledger makes DirtiCoin a 100% fungible currency. The 1,000 DiD you hold are exchangeable for the 1,000 DiD of anyone else without a change in value. In contrast, the 1,000 shares you have in one real estate investment cannot be directly exchanged for 1,000 shares someone else has in another real estate investment. Exchanging those requires adjustment for the differing risks, rewards, and values of the relevant real estate.
DirtiCoin is not tied to specific real estate investments. This means valuation is always equal.
The publicly viewable Asset Ledger of the Company always shows the value of DirtiCoin. This lets you see its worth in the marketplace, based on the assets backing it.
The Company directly bears the risks and rewards of real estate and manages the same. We have a whole team of real estate experts, so you don’t have to.
Low volatility, hedging against inflation, and appreciation are the rewards for DirtiCoin holders.
Crypto FAQs – Getting DirtiCoin
Q. How and where can I store my wealth into DirtiCoin?
A. You store your wealth in DirtiCoin by exchanging it for DirtiCoin. The official DirtiCoin website www.DirtiCoin.com is the preferred place to do that. You can also exchange it directly with individuals holding DirtiCoin or through many digital currency exchanges. You can buy DirtiCoin directly using your bank account, credit cards, or with Bitcoin (BTC), or Ether (ETH) or indirectly through an exchange.
Buying DirtiCoin requires that you establish a cryptocurrency wallet (your wallet) before finalizing the exchange. When we accept your payment, we deposit your DirtiCoin directly into your wallet.
If you are using ETH or BTC to buy DirtiCoin, you may need to pass certain US legal requirements. Requirements like KYC (Know Your Customer) and AML (Anti-Money Laundering) prevent the funding of terrorism and the illegal drug trade.
Q Why do I need a crypto wallet to get DirtiCoin?
A. DirtiCoin is a virtual currency using blockchain technology. In other words, it is a cryptocurrency. To keep your cryptocurrencies you either need an account with a company like Coinbase or a crypto wallet. The problem with using an account with providers like Coinbase is that they are, at heart, a digital exchange. Much like a foreign currency exchange (FOREX). If they don’t list a currency on their exchange, then you can’t bring it into your account.
Crypto FAQs
Digital Currency Exchanges
Getting an exchange to list a currency is sometimes an expensive and fickle process. Although the stated purposes of the their process is to ensure the reputability of the currencies they list it is more often about getting the right amount of up front payments from the currency to buy entry into the exchange.
DirtiCoin aims to eventually listing on all major exchanges. However, we will walk before we run. That means, for now, you need a private crypto wallet to keep your DirtiCoin.
Q. What fees do I have to pay to buy DirtiCoin?
A. When you buy DirtiCoin through DirtiCoin.com we may charge a modest fee for contract administration and a variable currency conversion fee. When you buy DirtiCoin through DirtiCoin.com the portal will allow you to either specify a maximum dollar amount you want to commit to the transaction or to specify the number of DirtiCoin you want to buy. Regardless, before the sale is finalized, you are given a record of the transaction. It shows you how many DirtiCoin you are buying, how much you are paying for the contract administration fee and how much you are paying in conversion fees. You will then have the chance to cancel, change, or approve the transaction.
Q. What is the purchase contract administration fee?
A. DirtiCoin is a cryptocurrency using the ERC-20 smart contract protocol. When we create the purchase contract there is a one-time fee to initially add this contract to the blockchain. The fee is the same for each contract, regardless of the amount of DirtiCoin being purchased.
Crypto FAQs
Q. What is the variable currency conversion fee?
A. Using a credit or debit card, or a payment service like Venmo, Zelle, or PayPal, to move your wealth into DirtiCoin incurs a conversion fee. Nearly every one of those services charges us a merchant fee to accept your wealth. This fee is usually about 3% of the transaction amount, sometimes more. We pass that fee on to you as a transfer fee.
