Everyone has heard how Bitcoin and other cryptocurrencies have turned those who bought just a year ago into millionaires. Profits of 1000% or more are not only possible, it is typical for many of these cryptocurrencies. Anyone who bought bitcoin for less than $500 in May 2016 would have made a profit of 1,400% in about 17 months. Then, over the last few days, we saw that Bitcoin has lost almost $1,000, so to say that these cryptocurrencies are unstable would be a big understatement.
Since the advent of Bitcoin in 2008, we at Trend News have been skeptical about the ability of cryptocurrencies to survive, as they pose a very clear threat to governments that want to see and levy taxes on all transactions. But while we can still be wary of actual cryptocurrencies, we are well aware of the potential of the underlying technology that supports these electronic currencies. In fact, we believe that this technology will have a significant destructive impact on the way data is managed and that it will affect all sectors of the world economy, just as the Internet has influenced the media.
Here are some questions and answers from which to start…
The question is: What are cryptocurrencies?
The most famous cryptocurrency (CC) is BITCOIN. It was the first CC launched in 2008. Today, there are more than 800 CC, including Ethereum, Litecoin, Dash, zcash, Ripple, Monero, and all of them are “virtual”. There are no “physical” coins or currencies.
The question is: How does CC work?
CC is virtual currencies that exist in very large distributed databases. These databases use BLOCKCHAIN technology. Because every Blockchain database dominates, it is considered to be immune to hacking because there is no central attack point and every transaction is visible to everyone on the network. Each CC has a group of administrators, often referred to as “minors,” who check transactions. A CC called Ethereum uses “smart contracts” to verify transactions. Crypto TREND will provide more information in future press releases.
What is BLOCKCHAIN?
Blockchain is the technology behind all CC. Each CC purchase, sale or exchange transaction is entered into the BLOCK, which is added to the chain. This technology is complex and will not be described here, but it can revolutionize the financial services industry, as transactions can be executed quickly and easily, reducing or eliminating commissions. This technology is also being researched for use in many other industries.
In: Are CC exchanges regulated by the state?
For the most part the answer is NO, which for some users is a big benefit in this market. Now it is the Wild West, but most developed governments are studying this market to decide what kind of regulation might be needed. An important decision is whether to treat CC as currency or as a commodity/securities. Canada and the United States have so far declared CC legal, but the situation remains precarious in terms of reporting and tax implications. Crypto TREND will monitor and report these events.
In: How to invest in this market?
You can buy, sell and trade CC using the services of specialized “exchanges” acting as a broker. You start by choosing an exchange, creating an account and transferring fiat currency to your account. Then you can place orders for THE GOOD and THE CC. There are many exchanges around the world. It is quite easy to open an account, and all these exchanges have their own rules regarding initial financing and withdrawals.
Crypto TREND will recommend CC exchanges in the future.
In: Where do I keep my CC?
To be able to freely move your cryptocurrencies and pay bills, you need a digital wallet. These wallets are available in a variety of formats such as desktop, cloud, hardware (USB), mobile and paper. Many are FREE, but security is an important factor because no one ever wants to lose their wallet or be robbed. Crypto TREND will recommend digital wallets in the future.
What can I do with my CC?
In addition to investing in CC products, you can also use cryptocurrency for certain financial transactions, such as bank transfers and bill payments. The list of companies accepting cryptocurrency is growing rapidly and includes major players such as Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, zynga, Subway and WordPress.
The question is: what to do next?
When we start, we’ll make each of the Crypto TREND articles short, and each will be as narrow as possible. As we noted earlier, we believe that cryptocurrency technology will change the rules of the game and potential investment opportunities like this one or two times in life. Make no mistake, investing in this industry early on is just your most speculative capital, money you can afford to lose.
Even if you don’t want to invest now, understanding this revolutionary new technology early on will allow you to take advantage of our recommendations as you move forward.
Expect more specific news and recommendations from Crypto TREND when we begin this journey through what might seem like an eerie jungle at first. This is an unstable market that may not appeal to all investors, but Crypto TREND will be your guide if and when you are ready.