cryptocurrency

Cryptocurrency – Why I need to know more about Bitcoin?

The subject of Cryptocurrency and block-chain technology appear more and more in our news papers. Nevertheless, it is one of the most misunderstood and controversial subjects for the majority of the people. In many people minds, The topic is attached to terms as “Black market”, “gambling” and “Speculations”. The truth is, that Block chain technology is the future. For every person that is searching to be updated in what’s happening in the world around him, it is time to understand better the subject and its applications.

It is true that in the last year the value of Bitcoin and other Cryptocoins has gone up and down and that many scams have been connected to its activities. This trend have been seen previously with new technologies reaching the market. As the internet of things allow easier and faster access to all in our new global era of investments, it is natural that the flunctation in early stage will be bigger. To start understanding a bit better the subject, here are a few important facts that you need to know:

  • Bitcoin is the first, most known and valuable Cryptocurrency in the market. With a total value of $169,452,298,312 (with a value per coin of $9,958.11 at the 5.5.2018)
  • At the moment the top 5 Currencies are – (from the top down) – Bitcoin, Ethereum, Bitcoin Cash, Ripple and Litecoin
  • Bitcoin is based on a technology called “Block-Chain”. Bitcoin is only the tip of the iceberg of this technology.
  • The Block chain Technology is an innovative system and a disruptive innovation which will enter into all the domains of our life and is going to change the way we operate the majority of our current systems.

In many conversation with professionals, Bitcoin and the Technology behind it the moment are compared to the Internet boom of the 90’s. For those of you that are to young to remember, When the internet have been introduced to the mass market in the 90, there was an hysteric moment of investment around it. Firms have emerged everywhere, creating a mania of investment and numerous amount of scam. The term “Dot-Com bubble” was a historic economic bubble and period of excessive speculation that occurred roughly from 1997 to 2001, a period of extreme growth in the usage and adaptation of the Internet. Nevertheless, following the crash and the end of the speculators the internet (which was in the time the new disruptive technology), has survive and became a tool we cannot live without.

Here is the Nastaq index of that period:

To understand how similar the Block chain technology is to this market, here is the chart of the price of Bitcoin in the last year: (Can you see the similarity)

It is important to notice that the value of bitcoin and any other Cryptocurrency is based on the amount of transaction made in the market. To make it simple, more people buy and sell or transfer it one to another the more value it gets. It is very similar to any currency in that manner. The crazy increase in the price of Bitcoin last winter is easy to explain. When the price start to go up and the awareness have picked, many people saw the opportunity to make profit and start buying, Creating a “Mania“. The values started to rise nothing to do with the actual technology behind it.
In the moment the value have served its investors, they started to sell their bitcoin out, which immediately made the price go down. At this moment, the majority of the people that were following the trend (without really understand why) saw the drop of price and start selling their bitcoin as well. In economic term it is called a “Panic”. at the low point of the panic in February the value of a bitcoin has been 7,023$, which was still higher than its value in November 2017 before the mania (5,976$). This is an important point.

I will publish a series of post in the subject to cover the subject and give you a better understanding of the subject in simple terms. For now it is important to hold in mind a few points:

  • Cryptocurrency is not so different from your Dollars or Euro,
  • These coins are reflecting the entrance of a new technology called “Block chain” into our lives.
  • This technology will affect governments, banks, insurance companies and working places.
  • Like many other disruptive innovation, the current market is trying to do everything in his power to block its entrance.
  • The price of the Cryptocurrencies will continue to go up in the long run.

Be Aware: The stage of development of Cryptocurrency and Block chain is far from being mainstream. It means, it is open to manipulation as people do not fully understand it. This post is not in any way giving a professional analytic overview for investment. Before investing in anything, please make sure you fully understand what are you investing in and how to do it.

Share with me you opinion in the subject. Awareness and open conversation are the key for the promotion of a better world.

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cryptocurrency

Cryptocurrency – not so different from your normal money

In the last year we have noticed the rise of cryptocurrency. The bitcoin, which is still the most famous crypto coin in the market, has jumped from 877€ to 16,297€ and stabilized itself recently on 6,671€. The Buzz and extreme reports around the web concerning those coins have left many people with a negative feeling, without having a minimal understanding in the topic.

In the reality, there is not such a big different between the money that you hold in your bank and a cryptocurrency. The main difference between them is the amount of control the government have on your income and on your economic freedom. Let’s understand why.

In many conversations I had with good educated people, the main objection for the investment in those coins boil down to 2 arguments:

  • It is money that do not really exists.
  • It is used for black market purposes.

I find those arguments quite amusing, as they are mainly a blind repetition of media manipulation in the mind of good and simple people. Moreover, those points are true as well regarding the money in your bank and are probably the exact reasons I would recommend people to invest in crypto currency.

cryptocurrency-predictions-2018-914087

To make it short and simple, based on latest publications, the amount of actual cash in circulation comparing to the money that exist in the market is no more than 10%, a number that diminish each year. You can make a self-check in your private life and see that the majority of payment done in your life are no longer involving cash.

Bitcoin dropped  from 16k to 6k in 4 weeks, it is true. From the other side, the stock market has lost  more than 4 Trillion Dollar in less than 3 days.

Based on that information, we can agree that the majority of the money we call safe do not really exists any more, exactly as the cryptocurrency. Moreover, the value of the money based on its world trade, exactly as cryptocurrency. The difference is mainly who control the money

The second point mentioned above, concerning the usage of crypto coins in the black market is based mainly on ignorance regarding our current economy. In the reality, it is true that Bitcoin and other crypto coins are used in the black market. From the other side, all the rest of the currencies in the world are used in the same black market as well.

The main difference between the two concepts, is that the government do not have control over crypto currency. Which is a good reason for the government to be concerned, not its citizens.

New technologies and progress requires adaptation and open mind. It is true to say that cryptocurrency is new and require an adaptation by the market to arrive to his full potential. But, believing that bitcoin is dangerous and unsafe based on the arguments made above, are just a reflection of governmental agendas for the sake of maintaining control on our lives.

Check it out in your life and search to understand more. The future is in our hands.

It is important to notice that like any other investment, it is important not to put all your saving in one place. Moreover, when investing your savings, understating the price of whatever you buy compared to its previous price and the reason for it, is important and necessary to promise more security in your investment. In general, the most important point of long term investment is, that if you do not have spare money to invest, do not invest.