Everyone has heard how bitcoin and other cryptocurrencies have made millionaires those who bought a year ago. Profits of 1000% and more are not just possible, it has been a commonplace for many of these cryptocurrencies. Anyone who bought a bitcoin in May 2016 for less than $ 500 could make a profit of 1400% in about 17 months. Then over the last few days we’ve seen bitcoins lose nearly $ 1,000, so to say these cryptocurrencies are volatile would be a big understatement.
Since the creation of bitcoin in 2008, we at Trend News have been skeptical about the ability of cryptocurrencies to survive, given that they pose a very obvious threat to governments that want to see and tax all transactions. But while we can still be wary of actual cryptocurrencies, we are well aware of the potential of the underlying technology that provides these e-currencies. In fact, we believe that this technology will become a serious disruptor of data management and will affect every sector of the global economy, as well as how the Internet has affected the media.
Here are some questions and answers to get us started …
Q: What is a cryptocurrency?
The most famous cryptocurrency (CC) is BITCOIN. It was the first CC launched in 2008. To date, there are over 800 CCs, including Ethereum, Litecoin, Dash, Zcash, Ripple, Monero, and they are all “virtual”. There are no “physical” coins and currencies.
Q: How does CC work?
CCs are virtual currencies that exist in very large distributed databases. These databases use BLOCKCHAIN technology. Because every Blockchain database is widespread, it is believed that it is immune to hacking because there is no central point of attack, and every transaction is visible to everyone on the network. Each CC has a group of administrators, often referred to as “miners,” who check transactions. One CC called Ethereum uses “smart contracts” to verify transactions. Crypto TREND will provide more information in future news publications.
Q: What is BLOCKCHAIN?
Blockchain is the technology that underlies all CC. Each transaction for buying, selling or exchanging CC is entered into a BLOCK that is added to the chain. This technology is complex and will not be explained here, but it can revolutionize financial services because transactions can be executed quickly and easily by reducing or eliminating fees. The technology is also being studied for application in many other industries.
Q: Are CC exchanges regulated by the government?
For the most part the answer is NO, which for some users is a big attraction of this market. Now it’s a “wild west,” but the governments of most developed countries are studying this market to decide what regulation may be needed. An important decision is to treat CC as a currency or commodity / security. Canada and the US have so far stated that CCs are legal, however the situation remains volatile in terms of reporting and tax implications. Crypto TREND will monitor and report on these events.
Q: How do I invest in this market?
You can buy, sell and exchange CC using the services of specialized “exchanges” that act as brokerage services. You start by choosing an exchange, setting up an account and transferring fiat currency to your account. You can then place orders on BUY and SELL CC. There are many exchange offices around the world. Opening an account is fairly simple, and all of these exchanges have their own rules on initial funding and withdrawals.
Crypto TREND will recommend CC exchanges in the future.
Q: Where can I save my CC?
To be able to freely move cryptocurrencies and pay bills, you need to have a digital wallet. These wallets are available in several formats such as desktop, cloud, hardware (USB), mobile phone and paper. Many of them are FREE, however security is an important factor as no one ever wants to lose a wallet or steal it. Crypto TREND will recommend digital wallets in the future.
Q: 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 remittances and bill payments. The list of companies that accept cryptocurrency is growing rapidly and includes such major strikers as Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway and WordPress.
Q: What’s next?
Starting with this, we will make each article of Crypto TREND short, and the volume of each of them will be as narrow as possible. As we noted earlier, we believe that cryptocurrency technology will change in games, and such potential investment opportunities will appear once or twice in a lifetime. Make no mistake, early investment in this sector will only be for your most speculative capital – money you can afford to lose.
Even if you don’t want to invest right now, an early understanding of this new destructive technology will put you in an advantageous position to benefit from our recommendations as you move forward.
Expect to see more news and specific recommendations from Crypto TREND when we embark on this journey into the seemingly first foreign jungle. This is an unstable market that may not appeal to all investors, however Crypto TREND will become your guide when and when you are ready.