Bitcoin is a scarce resource. You’d do well to have and hold at least one whole one.
Perhaps you’ve heard of Bitcoin, Ethereum, or a range of other cryptocurrencies. Or maybe you have no idea and have only recently stumbled upon ‘cryptos’. It’s certainly a fascinating topic, and one that is getting a lot of attention in the financial world.
So, what exactly is a cryptocurrency?
A crypto is a digital form of money. You can’t physically hold or touch this money as it is only stored and recognised online. What makes cryptos unique is that they use a system called the ‘blockchain’.
This blockchain is a digital record of every transaction ever made for a crypto. It operates on a peer-to-peer network, making it completely decentralised. What this means is that you don’t need a third-party, like a bank, to facilitate a transaction.
Better yet, it’s faster, cheaper, and can also be more secure than banks!
Where did it all come from?
The first cryptocurrency was made in 2009 — bitcoin. It’s the most well-known crypto, and also the most valuable (at time of writing).
Bitcoin had small beginnings. In June 2009, one bitcoin was worth US$0.0001. Today, one bitcoin is worth thousands of US dollars.
It’s made some people a very, very large sum of money.
However, at its core, bitcoin isn’t meant to be a financial asset. It’s meant to replace money as we know it. And to an extent it already has.
Today you can purchase goods from some retailers online or in-store using bitcoin. You can even buy a luxury car or house with bitcoin. And every day more goods and services are being listed in bitcoin.
One day we may be using bitcoin for all our financial needs.
Bigger than bitcoin
However, there is more to it than just bitcoin. There are now over 1,100 cryptocurrencies in circulation, and new ones are added almost every day.
Now, not all of them are successful, and only nine current cryptos have a valuation over US$1 billion. But the fact remains that any one of these cryptos could take-off at any moment.
The reason for both the volatility and impressive gains is down to the fact that the blockchain technology, which underpins all cryptos, is still very new.
One brilliant idea could result in the next Amazon.com, Inc. [NASDAQ:AMZN] or Facebook, Inc. [NASDAQ:FB]. The potential is huge.
It’s why cryptocurrencies have earned a reputation for being the single most exciting financial opportunity around right now.
And we’re committed to bringing you all the latest developments and news. We aim to keep it simple and avoid the jargon. Crypto news for the average Aussie — because you can’t afford to miss out.
But, of course, there are risks.
Crypto’s are risky business
There are no ifs, buts or maybes. Cryptos are very risky. No regulators, no safety net, and no rules. We call it the Wild West of investing — and for good reason. We’ve never seen volatility like this.
This isn’t the investment to put your life savings into. This is like nothing you will ever see in the stock markets. The gains are potentially big, but so too are the losses.
But, if you’re willing to learn, and willing to take on some risk, this could be a once-in-a-lifetime opportunity — a cryptocurrency revolution.
The only question is: Are you willing to join?
When you talk about ‘crypto’ to the uninformed mainstream, many are instantly dismissive of these ‘magic beans’, ‘tulips’ or ‘pretend internet money’. But boy are they wrong.
If you keep tabs on bitcoin or have had some loose coins rattling about in your digital wallet, then you’d have been pleased to see that cryptocurrencies are enjoying a resurgence.
Forum chat is about as effective a use of time as Facebook or digging a mud hole in the rain. Nowhere is this more evident than in the world of cryptocurrency.
With bitcoin, we believed it would go mainstream. An alternative to fiat currency that could hold its value like gold. This was an idealistic dream.
Casino gambling isn’t something we’re a big fan of. But it’s interesting that such a risky activity is still being played out in this new wave of cryptocurrency.
The truth is there are a number of things happening in the world now to be worried about. But you can’t let it get you too down. What’s easy to forget is the wonderful opportunities…
Cryptocurrencies took the world by storm in 2017. But since early 2018, the price of most cryptocurrencies has been in a steep retreat. Including the crypto granddaddy — bitcoin.
There’s a crypto project called Decentraland. The premise is quite simple, it’s a virtual world which consists of 10s of thousands of parcels of virtual land.
Cryptos have seen some positivity recently, and there are quite a few things going on behind the scenes.
Crypto investors flocked to Malta in droves last year for a massive blockchain summit, and it’s fast becoming known as a global crypto hub.
Banks are closed. What do you do? Panic starts to set in. Where is your money? And, why can’t you access it?
The lifespan of Bitcoin has been around the longest of all cryptos, which could mean that it has the best chance of all cryptos to survive.
Buffett remains an idol of mine and I’d give my right arm to be a tenth as good as he is at picking stocks. But that doesn’t mean he’s perfect.