What is cryptoCurrency: 21st-century unicorn – or the money of the future?
This introduction explains the most important thing about cryptocurrencies. After you‘ve read it, you‘ll know more about it than most other humans.
Today cryptocurrencies have become a global phenomenon known to most people. While still somehow geeky and not understood by most people, banks, governments and many companies are aware of its importance.
In 2016, you‘ll have a hard time finding a major bank, a big accounting firm, a prominent software company or a government that did not research cryptocurrencies, publish a paper about it or start a so-called blockchain-project.
But it doesn’t exist?
Whilst this isn’t entirely accurate, all you own is an entry on a database that no one else can modify built by the strongest encryption out there, but this is no different to your money in a bank account, you cant physically see the money! Most of us never even see our wage, it comes in to our bank and goes out to pay the bills.
CryptoCurrency is the exact same thing! its just a modern way of transfering money, now a days you can actually buy a car with a bit coin, it is becoming widely accepted as a form of currency, and the government’s dont like it because its harder to monitor how can you get taxed on something they can’t see, admitadly its still not well regulated but that’s not a bad thing, what you essentially own as “cash” is nothing but a few files on your PC.
Bitcoin is the worlds leading cryptocurrency and has been around for more than 6 years now , so why are we just hearing about it now…..
People in early 2000’s bought their bit coins for as little as 50p back then you had to mine them, and mining cost electricity, (minining is nothing more complex than a piece of software running on your pc solving puzzles) back then it was easy to mine them, a PC of todays power could mine thousands of coins , but there is a limited amount of coins out there! (22 million for bit coin to be exact) and as less become available they take twice as long to mine as the puzzles get harder(this is block chain technology) meaning more power, more time, more electricity and hence…. the increase in value! a typical bit coin could of taken one day to decode when it first came out, at a cost of 50 pence in electric, now… it could take you 3 years to mine one, and cost you hundreds to mine one… so now a days mining is not regarded as the ultimate way to get your bit coins, this is now being done by millionaires who can afford to spend 100,000$ on equipment to mine a bit coin a day! for the average person now a days we leave them to do it!! instead we buy a bit coin and let it raise in value!
It is important to note, you dont have to buy one full bit coin, you can buy 0.00000001 of one! there is no minimum amount required to purchase one.
Bit coin seems to of had its boom?
I would agree, can bit coins pass £10,000 a coin! probably! but if you bought one coin now you would need them to go to £20,000 to double your money! people say its too late now and for bit coins i would agree!
But there is other currencys out there, nearly 500 to be exact! bit coin has had its boom, now its time to move on to the other ones that have not yet had there boom!
Will they boom?
We can’t sit here and say yes, or we would all be millionaires. with everyone investment comes a risk and the higher the risk the higher the reward, that is the rule of thumb now a days with any investment! not just cryptocurrency.
The other main contender that is starting to rise is Lite Coin! regarded as one of the top 5 currency’s out there
How do i get started?
Whilst a lot of countries dont allow the exchange or purchase of bit coins , it is fast becoming an accepted method, the best place is coin base and you can sign up here and get started in 5 minutes!
Should i invest and how much?
The rule of investment is,and will always be, invest what you can afford to lose… that’s not to say you will lose it, just dont put your kids savings in to it, but what ever you put in be prepared to leave it for 6-12 months at least, don’t start checking every day and thinking oh i have made $100 time to take it out, if you had thought that when bit coins were $1 you would be pinching your self!!
This is a risk! and always will be, put the money in you dont mind not having for some time and let the markets do its thing.
If lite coin goes the same way as bit coins does and hits $8000, then your 5 coins at $300 would be worth $40,000, but if it crashes and falls, then you lose your $300, but most of us would rather lose $300 knowing we had a chance of paying our mortgage off.
The bottom line…
Its a risk, but if your prepared to take it, the rewards may be big.
But one thing to note, cryptocurrencys have not yet hit documentaries, TV,the news, there is still a long way to go for media speculation, once these documentaries hit the televisions and everyone starts to buy in the value will soar through the roof!
Good luck what ever you do, and don’t do anything if you are not financial able too…. if you can’t afford to invest, then dont, that’s not investing that’s just playing stupid.