Friday, December 15, 2017

Cryptocurrency: Modern Day Gold Mine ~ Digital Millionaires or 21st Century Cyber Boom

Business and Consumer shaking hand accepting bitcoin

   Just one year ago, if you were to engage a conversation on blockchain technology, cryptocurrencies or bitcoin investment. Chances are you would have gotten the curious dog's head tilting look of confusion. 

  What is this bitcoin....block what......ledgers? Indeed, a new era of terminology has surfaced including words like:

Bitcoin decentralized mining wallet cryptocurrency dugutalMining, token, ethereum, Gas, transaction block, smart contract, digital currency, altcoin, sha-256, cryptography, wallet, fork, hardfork, softfork, hashrate, ICO Initial Coin Offering, node, private key, proof of work, proof of stake.

These are but a few of the jargons that are now immersed in discussions around the financial industry. With this just being the beginning. As the current reigning cryptocurrency "Bitcoin" rises in popularity and value. So does it's influence on the other 1300+ altcoins. As well as it's significance in the growth of this distributed ledger technology. 

Blockchain cryptocurrency transaction finance technology exchangeBlockChain, the science behind this disruptive technology. Will be the dominating mechanics in future industries. Mainly due to it's ability to provide trust behind any online digital transactions by ensuring the integrity of the data exchanged among devices without going through a third party.

The future in this technology will quite simply remain intact for years to come. It's implications as of today still has not been fully exposed. Security and trust benefits being the primary influence of this distributed ledger. 

Because of the nature of this technology, financial institutions will be able to cut cost/fees by the eliminating middle-person or third party out of the transaction process. Increasing security along the way.  Yet, blockchain will be incorporate into many other usages........with the world transforming deeply into digitization. This technology, is the perfect answer to the future Internet Of Things.

Blockchain with a network of computer linked

Banking, smart-contract, music & video distribution. Passports, birth certificates & medical records are only the tip of the iceberg within this industry.  Making this a sustainable technology worthy of a long term investment.

On to Bitcoin and it's altcoin sidekicks

In the world of Bitcoin, as of  Dec. 18, 2017 it's value has been hovering around the $19,000.00 range. 

As of Jan. 14th, 2018 $13,383.70

Only just a year ago it's was at $778.00. For those in the know, bitcoins history has been a long slow roller-coaster ride until recently. 
  • 2010 - July $0.08
  • 2011 - Feb. $1.00 in July $31.00 by Dec. $2.00 
  • 2012 - Dec. $13.00
  • 2013 - Apr. $266 June dipped $70 then $600 -$1000 
  • 2014 - Jan. $750-$1000 end the year $440-$630
  • 2015 - Mar. $200 - $500
  • 2016 - May - Nov.  $450-$780
  • 2017 - Dec. $19,697 All-time high
  • 2018 - Jan. $13.383.70 

As you can see, Bitcoin has had a rather interesting journey. I can see a few of you now......."Dude, if I only brought $500.00 worth in 2012." At today's market value that would have netted you a cool $653,845.50.          
That's where long term "buy & Hodl" investment strategy I wrote about in my last post comes into play.

Search engine for things you can buy with Bitcoin

Where is Bitcoin heading now? With 2018 is just around the corner. What strategies does one plan as the likes of Ethereum, Litecoin & a host of other altcoins beginning their ascend into the unknown. With bitcoin and it's futures giving a bit of credibility to this digital currency. Should investors take heed?

If we were to reflect on the period between April 1997 - June 2003 perhaps better known as the dot-com boom or dot-com bubble. Would it be safe to invest into other digital currencies? Or should we simply just "hodl"?

What are some of the experts saying..........?

"I think the reason people buy high, besides the fact that they are investing on emotion, is because they don't know how to value a business."
Tom Vilord, president and CEO of Wall Street Value, an investor consulting and education company.

Michael Spencer, CEO of NEX Group Plc, a London financial expert. Talking to Guy Johnson of BloombergTV, can see bitcoin’s price reaching $20,000 before reversing steeply. Spencer joins a slow growing group who believe that Bitcoin is or in a bubble

The Bitcoin industry has been rife with scams and thefts, so it's hard to believe that the currency will be able to sustain itself over the long term. It has also been linked to drug trafficking and illegal gambling. I see it as a fad and nothing more, and as more people lose real money because of the legal issues surrounding Bitcoin, I eventually see it fading from existence.
Andrew Schrage ~ Founder and CEO of Money Crashers Personal Finance
Investfly - Virtual Stock Market
Bitcoin might have an inflationary or deflationary effect. It's too early to be sure which way it might influence monetary aggregates and velocity of circulation. It could expand the de facto money supply and could increase or decrease the velocity of circulation of the supply of fiat money and near-money.  Bitcoin might bring back Gresham's Law by driving out inferior or "bad" money."
Dr. John C. Edmunds ~ National Economist and Financial Reformist

"This is a dangerous speculative bubble by any shadow or stretch of the imagination." Stephen Roach told CNBC's The Rundown. "This is a toxic concept for investors.
 Stephen Roach, Yale University senior fellow and the former Asia chairman and chief economist at investment bank Morgan Stanley.

"You need to understand how it works as an investment, how liquid it is ( can you get out when you want to), the level of risk and what can drive the price up and down. Do not invest just because a friend told you to, but to do your own research and make the decision that's right for you."
Martin Lewis ~Money Saving Expert 

Kevin O'Leary explains one big thing people don't understand about bitcoin 

Worse case scenario for  bitcoin investors........?
  • The whole world would consider Bitcoin illegal
  • You could get hacked or loose you private key
  • Other Altcoins surpassing Bitcoin in value (investors abandoning ship)
  •  Could “kill the planet” due to the amount of energy required to mine the currency.

Search engine for things you can buy with Bitcoin.  
Hundreds of Bitcoin-enabled stores and businesses.

Copyright © 2017 Andrew Hayes All Rights Reserved
DISCLOSURE: This post contains sponsored ads and I will be compensated if you make a purchase after clicking on my links.