Everyone has heard how Bitcoin and other crypto currencies have made millionaires among buyers only recently a year ago. Earnings of 1,000% or more are not possible, this is a common place in most crypto currencies. Someone bought Bitcoin in May 2016 for as little as $ 500, with a profit of 1,400% in about 17 months. After the past few days, we’ve seen Bitcoin lose almost $ 1,000, so to say that these fast-growing crypto currencies can be a huge understatement.
Since Bitcoin’s inception in 2008, we at Trend News have questioned the viability of crypto currencies, as they present a very clear threat to governments wanting to see and tax all transactions. Even if we can still be wary of real crypto currencies, we do know the potential of the underlying technology that drives these electronic currencies. In fact, we believe this technology could be a factor that can disrupt how data is managed, and it will affect every sector of the world’s economy, just as much as how the internet can affect media.
Here are some questions and answers to get us started …
Q: What are Crypto Currencies?
The best known crypto currency (CC) is BITCOIN. This is the first CC, launched in 2008. Today there are more than 800 CCs, including Ethereum, Litecoin, Dash, Zcash, Ripple, Monero, and they are all “virtual”. There are no “physical” coins or money.
Q: How does CC work?
CC is virtual currencies with multiple distributed databases. These databases use BLOCKCHAIN technology. Because each Blockchain database is widely distributed, it is considered irrelevant to hacking, as there is no central point of attack and every transaction is visible to everyone on the network. Each CC has a group of managers, often called “miners”, who certify transactions. A CC called Ethereum uses “smart contracts” to authenticate transactions. Crypto TREND will provide more details in future news publications.
Q: What is BLOCKCHAIN?
Blockchain is the technology that supports all CCs. Each transaction for buying, selling, or exchanging CC is entered with a BLOCK added to the chain. This technology is complex and will not be explained here, but it has the potential to transform the financial services industry, as transactions can be quickly and easily executed, reducing or eliminating fees. The technology is also being explored for applications in many other industries.
Q: Is the CC Exchange instead controlled by the government?
For the most part, the answer is NO, which, for some users, is a major attraction in this market. It’s the “wild west” right now, but governments in most developed countries are scrutinizing this market to decide what regulation is needed. A big decision is to treat CC’s as a currency or a commodity / security. Canada and the USA have so far declared CC legal, although the situation remains fluid for reporting and tax effects. Crypto TREND will follow and report on these developments.
Q: How do I invest in this market?
You can buy, sell, and exchange CC using the services of specialist “Exchanges” that act as a brokerage. You start by selecting an Exchange, setting up an account, and transferring fiat currency to your account. You can place your orders on BUY and SELL CC. Many exchanges around the world. Opening an account is fairly simple and these exchanges all have their own rules regarding initial funding and withdrawal.
Crypto TREND recommend CC Exchange in the future.
Q: Where do I put my CC?
To have the freedom to transfer your crypto currencies, and to pay the bills, you need to have a digital wallet. These wallets come in many formats, such as desktop, cloud based, hardware (USB), mobile phone, and paper. Many of them are FREE, however, security is a big factor because no one wants to lose their wallet or have it stolen. Crypto TREND recommends digital wallets in the future.
Q: What can I do with my CC?
As well as investing in CC products, you can also use crypto currency for certain financial transactions, such as transferring money and paying fees. The list of companies that accept crypto currency is growing rapidly, and includes many hitters such as Microsoft, GAP, JC Penny, Expedia, Shopify, Bloomberg.com, Dish Network, Zynga, Subway, and WordPress.
Q: What’s next?
At our start, we will keep each of the Crypto TREND articles short and keep the coverage of each as narrow as possible. As we mentioned before, we believe crypto currency technology can be a game changer and potential investment opportunities like this come once or twice in a lifetime. Make no mistake, investing early in this sector is only for your most speculative capital, money you can lose.
Even if you don’t want to invest this time, getting an early understanding of this destructive new technology will put you in a most advantageous position to profit from our recommendations as we go along.
Expect to see lots of news and specific recommendations from Crypto TREND as we embark on this journey into what can be an alien jungle at first. It’s a fast-moving market and may not appeal to all investors, however, Crypto TREND is the one to guide you when and when you’re ready.