Search Posts

It looks like a Ponzi scheme or a pyramid scheme. If I buy bitcoin today, it will be more valuable tomorrow because others have bought it at a higher price. As an existing investor, I am benefitting from others getting in. Meanwhile, what Im actually owning is a bitcoin. Dont get me wrong, bitcoin is valuable, but its not worth $10,000 per coin, or even $1,000 per coin. Its a currency. Its not Amazon or Apple stock.

If you bought Apple or Amazon stock early on, then you bought something that had a massive hidden future value, and as that value was revealed, you benefited by investing in it very early, before the value was apparent. Apple and Amazon are companies which generate revenue and profits, and a share in these companies represents ownership in something that is growing.

Risk is inherent to investment, and investors should keep in mind that digital currency
is in a very early stage of development when compared to similar asset markets
like the stock or bond markets.

This is still an extremely high-risk space,
Don't invest money you can't afford to lose

The general consensus was that Bitcoin would take the world by storm, but we have yet to see the storm, which was also seen to uproot commercial banking as we know it today, a material decline in sticky bank depositors a negative for bank top line revenue

Bitcoin may have taken a dip, while numerous other cryptocurrencies vie for the spotlight. But that doesnt mean cryptocurrency itself is about to crash.

I see crypto investments similarly to how I see traditional investments in stocks and bonds, which go through cycles,
While there is more volatility in cryptocurrencies, its a worthy area for people to experiment with their investment portfolios really carefully.

it could be caused by This advantages like

anonymous transactions
security
low transaction fees
Decentralisation
Ability to store value+ Limited Amount of Coins
Mineable

If you are planning to invest in cryptocurrencies make sure to spend at-least 24 hours of effective reading time understanding what is blockchain, what are cryptocurrencies, security measures you should take before investing in cryptocurrencies and so on. Please remember that no research is enough and you need to keep updating yourself constantly. What could have been true a couple of months ago might be completely wrong now. Technology, Finance, Investment strategies, Regulation and every other thing about cryptos is changing at such a fast pace that you need to update yourself on a daily basis. In crypto lingo it is called DYOR : Do Your Own Research

Blockchain technology doesn't have to exist publicly. It can also exist privately - where nodes are simply points in a private network and the Blockchain acts similarly to a distributed ledger. Financial institutions specifically are under tremendous pressure to demonstrate regulatory compliance and many are now moving ahead with Blockchain implementations. Secure solutions like Blockchain can be a crucial building block to reduce compliance costs.

bitcoins derive their value just as anything else does: because people want them. Like any other currency, bitcoin follows the basic rules of supply and demand. Currencies have always been useful tools to make trade easier, enabling holders to convert goods into a widely tradable commodity through sale, then use the proceeds of that sale to purchase nearly anything they wish.

Reason is simple, when our government looks at bitcoins, they are incapable of tracing any person or
company holding responsibility for Bitcoin not only in their jurisdiction, but in the entire planet!

Legal Implication : In order to recognise any medium as authorised payment and settlement system,
they should have proper licences from Reserve/Central Bank of the respective country.
So that government can ensure all the preventive measures against fraud , money laundering and any antisocial activity .

When a case is filed against Bitcoin, not the people transacting bitcoins, inside the jurisdiction,
governments cannot be able to perform their legal obligation to the society !

This is the first part that makes the government to take hostile approach to crypto-currency.

Law enforcement is concerned that virtual currencies like bitcoin
already known to be used for illegal transactions, including sex and drug trafficking
will play an even bigger crime role as more investors use it as their preferred payment choice.

Digital or virtual currency, often referred to as cryptocurrency,
is not regulated by any central authority or government.
Although local entrepreneurs say cryptocurrency has many legitimate uses,
the speed and relative secrecy of the transactions have also been known to attract criminals.

Boxer Floyd Mayweather showed his interest in cryptocurrency via Instagram on two occasions.
In July, he posted a photo of himself on a private plane next to a table covered in money with the caption:
"I'm gonna make a s--- t-- of money on August 2nd on the Stox.com ICO." Stox, a sister site to Invest.com,
is a bitcoin prediction market product.

In August, Mayweather took to Instagram again to show his support for
blockchain-based decentralized marketplace Hubii Network's ICO. Under a photo of himself,
the boxer added the caption, "You can call me Floyd Crypto Mayweather from now on."

Finance, like most human inventions, is constantly evolving. In the beginning it was basic:
food was traded for livestock, and livestock for resources like wood, or maize.
It progressed to precious metal, such as silver and gold. And now,
the next step in financial evolution has come to light.

This new form of currency has been constantly evolving over the past decade,
developed by an unknown person and maintained by a collective group of the brightest minds in technology.
Its a new form of money that is created and held digitally, and the most important part, of course,
is that no government owns it, or decides its value - the peer-to-peer network community does.

We call this new money, Bitcoin.

With PayPal, users are locked into the fiat currency paradigm such as the US dollar, which will continue to lose value over time. But anybody from Argentina will tell you what capital controls can do to an economy and how a lack of viable currency options could hijack the economy leaving citizens scrambling to find any other store of value.

Fortunately, Bitcoin does not care what you think about Bitcoin and does not force anyone to use it. In fact, if you have a Bitcoin bias, every one is free to choose their coin of preference such as Litecoin, Dogecoin, etc. Don't like any digital coin? Then create one yourself - the possibilities are endless.

Why is this important? Well, lets say you are in Egypt in the midst of a revolution and the government just imposed controls on all capital exchanges so you are stuck with the worthless Egyptian pound because you have no other alternative and, as a result, economic activity comes to a halt in your community.

Bitcoin, on the other hand, is resilient to outside influences, upheavals, recessions etc. And cryptocurrencies in general offer greater variety when it comes to selecting currency that will most benefit you.

So both a repressive regime or PayPal can seize or freeze your account for security purposes this is not the case with Bitcoin as an individual is now able to store and control their own money. Moreover, users also have greater storage options such as a paper wallet or cold storage to limit exposure to centralized risk.

Use Two Factor Authentication

If the wallet offers a two-factor authentication (2FA) take it. This means that if someone had access to your login details,
they would also need your phone to get the 2FA code.
However, note that text and email 2FA are not recommended as these can easily be intercepted
if someone has access to your email, or ports your phone number to a new device.

in order of most to least secure, are as follows:

Hardware dongle, see: https://landing.google.com/advancedprotection/
An app on your phone that doesnt sync your secrets anywhere (e.g. Google authenticator)
An app on your phone that does sync (e.g. Authy)
Email based
SMS based

With Bitcoin transactions, there is no third party. Even the government is not able to influence these transactions in any way. There will never be a viable way of implementing a Bitcoin taxation system. If taxes were to be paid, then it would have to be voluntary payments by the traders without any forceful influence. and that is why am involved.

To be fair, it has gotten much easier to buy, sell, and use bitcoin over the past several years, but it still isn't user-friendly enough to encourage mainstream adoption. Currently, if the average person wants to buy bitcoin, he or she needs to open an account at a bitcoin exchange such as Coinbase, link a checking account (or credit card, which generally comes with a higher fee), and in many cases wait several days for the transaction to clear. I consider myself knowledgeable about bitcoin, and I can buy virtually any product online with greater ease than I could buy, say, $200 in bitcoin.

Although Bitcoin is a decentralised currency, some decisions about how it will work or evolve need to be made from time to time. These also have an impact on the price.

The software used to verify Bitcoin transactions is created by developers and is run by miners (the global network people who verify Bitcoin transactions).

To change the software used to mine and authenticate transactions developers need more than 50% of the global network of miners to agree with that change. When they get that support they can create a fork.