What is Crypto Currency and why should we invest in it?
By now the average adult would have heard the terms; ‘Block chain,’ ‘crypto-currency,’ or Bitcoin. But what does it all mean and why should you be looking at it as a short term investment vehicle?
Crypto-currency or digital currency was born just after the banking crisis, when the world started to sit up and realise that the banking system is corrupt to its core. Leading investment brokers using ordinary people’s cash to invest in buying and buying more debts on top of bad debts, that, and high street bank’s lending money to people that they have not, in all practical sense of the word, got to lend.
The central banking system traditionally does everything it can to squeeze fees from its users. The system has been corrupted by greed. Inflation is not understood by the majority, but those who do, know it is the most flagrant manipulation of any countries wealth in favour of the people who control the money.
Many people online asked the question; ‘why do we rely on centralized banks and the dollar, Yen, Euro or any other fiat currency?’ Money is only a pledge from one person to another to give something of value for something of value, and the value of bank’s money we use today, is only based on a sentiment that, and the fact that we all just got used to using paper money and accepted it as tangible value.
If someone somewhere organized a highly prolific social media campaign to tell the world not to use the US Dollar, well, quite quickly we could see the downfall of one of the strongest nations on Earth.
Crypto-currency says ‘Look if you value the dollar based on sentiment, well we can start our own currency based on perceived value as well, and if we get enough people using it, then it has value, and can be traded for goods and services like any paper money.’ The challenge is to get it as accepted and as well-known as the dollar.
Crypto-currency has also gained traction with ordinary people based on three major factors:
Digital Money is virtually instant money across the globe in real time. Many of us have been very frustrated at the time taken to transfer cash from one country to another. Bitcoins time is around ten minutes to see coins arrive in your online wallet from anywhere on Earth, many newer digital currencies are faster.
You can send money Via Western Union which is one of the only same day services available, providing of course the Western Union outlet is within reach of you, is open, and you have your passport and have the unique ID number given to you. The charges are quite high taking quite a sizeable chunk out of your cash from either the sender or the receiver, and it also depends on their (usually lousy) rate of exchange.
Crypto-currency is in the main free of charges, some currencies make a small charge. Imagine you are a Business and you can rid your company of all annual bank charges and time waiting for money to arrive, think of how much more in profit you could be.
The third and most interesting reason concerns a major culture shift, and is the fact that the transaction is based purely on a numeric algorithm via a block chain, and not a person or based on where he lives. It is not biased by any political motivations so it can be sent anywhere to anyone fast and very cheaply.
Some Digital currencies vet their members with a Know Your Customer policy making it easier to keep the currency ‘cleaner.’
Many say this is fraught with danger, letting the criminal underworld get access to currency they can use for evil, however you could say; those who accuse know their own tricks best, if you could look again to see how much money the USA spend on their military offense (Come on you can’t say; military defense now can you, especially when they are currently bombing over half a dozen countries?) every year you would wonder who the real crooks are.
‘There is nothing certain in life bar death and taxes’
With the financial markets worth around 87 Trillion U.S.D. the alternative currency market is merely a drop in the ocean, even if you do consider the pioneering digital currency’s growth of Bitcoin between 2009-2014 making millionaires out of people who invested a few hundred dollars and where prepared to be scoffed at by the institutionalized investors.
There are over 600 Crypto-currencies on the market now, and with fierce competition, you can’t help stumbling across online dog fights mainly between two or three digital currency communities warning of the other one.
Like Warren Buffet, who told a forum once; if you watch Bloomberg all day you will eventually go mad, and probably be too scared to invest in anything. Savvy investors know the markets are long term for any real chance of success.
Due diligence is a term which to me means; look and understand everything yourself, then ignore what everyone else is saying and doing and trust your own judgement, it’s rarely wrong! Read Blink by Malcolm Gladwell to get a feel of how strong your own intuition can be.
There are people online who will tell you no one can follow Bitcoin, and there will only ever be a few Digital currencies that will ever make it and the vast majority will lose money.
First of all, if you are going into investments, then you know it is not much different from any casino, never invest what you will cry over if you lost, the finance world will care nothing for your tears! Once your man enough to accept somewhere you will lose money, and somewhere you will make money, and if your intuition serves you well then you will be profitable.
Someone once told Henry Ford that the car will never ever replace horses! Did he listen?
Evolution is about taking what you have and improving on it, if we all stuck with Oliver and Wilbur Wrights Airplane, then the global travel market world just not exist, and I would be writing this from South Africa where I was born, instead of thousands of miles away in Laos, and never ever have traveled on a plane and seen the top of clouds, and nor would you!
When a success is created there are other people with money, skills, and resources are sitting on the sidelines examining and contemplating on strategies and ways to create a better, faster, more efficient version. They want to duplicate the same success, right? – Then they execute. They take the best of Bitcoin and include it. They take the worst of Bitcoin and throw it out, innovate and improve on the function and release their version… and this is only just the beginning of an incredible future.
If you are a Biz-find merchant and sell a product or service you must now start looking at Digital currency and accepting Bitcoins and the alt coins (the newer digital coins markets) as there are now millions of people who have invested and are investing, using, mining, and growing a business online with this new paradigm shift.
For more information about investing in Digital Currency from as little as 25 Euros contact me.